By: Courtney and Keith
(Although I originally started this piece, I asked Courtney to take a look and add to it. Courtney jumped in and filled the article out, adding where I was falling a bit short. Keith)
COVID-19 Distresses Physically and Financially
In the wake of COVID-19 many companies had to let folks go, some in reduction in force due do economic hardship, and others by furloughing employees. My Daughter in Law was let go due to reduction in force, and my Son in Law was Furloughed.
Luckily, it wasn’t a major hardship for either of the two couples, as my Son and Daughter both retained their jobs; my Son in maintenance at a local hospital and my Daughter in Medical Billing, which she has been doing from home for a couple of months now.
Both couples faced a reduction in income, but were pretty well set for the loss of money. Despite that, they (and many others) were forced to look at ways to save money.
Taking a Look at Cash Flow
First things first, they looked at what they spent daily/weekly on non-necessary expenditures, and cut those off. Easy for most, with possibly some good money held back.
As I’m writing, my Son in Law is back to work, but the Daughter in Law is still looking for a new job. Sure, she’s drawing unemployment, but she’s not one to just stay at home. She prides her self in holding a good job, and so she’s patiently looking for something that is comparable in wages to her last job.
For many, the “Money Buffer” is not there, and steps must be taken to lessen the out flow of money.
So, what can be done?
Start where my Kids did, cut all here and there spending that is not necessary, such as Starbucks, Tobacco (Maybe a good time to really quit).
After doing so, it’s time to look at what other options there are. Housing and car payments are probably the largest payments households have to make, so it would be beneficial to contact the lenders, asking about options for deferring payments, picking up when things get better financially.
In doing so, it’s important to know just how deferring payments will affect the outcome of the loans.
Making the Cut
Next, look at expenses that are not absolutely necessary, such as:
- Entertainment: cable/satellite TV; monthly subscriptions, such as Netflix; and such
- Gym memberships
- Car insurance on non-essential vehicles (Many folks, such as myself, have extra vehicles that do not get driven every day)
- Mail order item monthly subscriptions, such as: “Beauty in a Box” cosmetic products; food services like Schwan and Omaha Meats; Stitch Fit clothing services; and other such monthly expenditures that are not needed for regular running of the household budget
- High dollar food items, such as steak, lobster, shrimp, etc. Go with staples and still eat well.
- Dining out
- Gifts for others- a hard one to swallow, but when you fall on hard times you don’t want to go into debt to make someone else happy. Plus, there always are non-monetary gifts you can give someone for an occasion!
- Charitable contributions
- Unnecessary Amazon purchases: be honest with yourself, how much of the stuff that you order from Amazon is actually necessary?
These are just some examples of discretionary spending that you may have. You know your expenses better than anyone else, so when faced with a lesser income, you know what you can truly live without to make sure you can keep a roof over your head and ensure you and your family are fed.
Others’ Ideas
Courtney and I definitely don’t have all the answers, so here’s a few other articles that will add to what we’ve shared.
- 5 Ways You Can Trim Your Monthly Expenses Right Now If You’re Struggling Financially
- How To Make A Zero-Based Budget Work During COVID-19
- 10 Smart Ways to Reduce Expenses and Tighten your Budget to Make your Stimulus Check Last
- How To Maintain Financial Health During COVID-19
- How to Manage Your Finances during the COVID-19 Crisis
Until next time, Peace!
