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Pandemic-Proofing – 5 Strategies to Help You Bolster Your Finances During The COVID-19 Outbreak

When the novel coronavirus, COVID-19, spread across the globe, business owners and their staff went into panic mode. Stay-at-home orders meant companies had to close their doors, and that ultimately caused the closing off of income streams. Even in the wake of a significant financial crisis, there are ways you can soften the blow. Check out these strategies for bolstering your finances. 

5 Strategies To Help You Bolster Your Finances During The Covid-19 Outbreak

Tap into Loan Initiatives

There may be a period of time where a lack of income causes hardship, and an inability to pay bills. In that instance, you may wish to consider a no-interest loan scheme to help you through the challenging patch. 

Given that the loan has no interest attached, all repayments in the weeks and months following will be principal. This will allow you to pay down the amount you borrow faster than if you were to reach out to your bank for help. 

Take Government Help

Many people can feel too proud to accept help from others. Still, it’s worth considering the government’s offer of $1,200 cash injection for individuals, and $2,400 for married couples. These stimulus packages are available for all Americans

Unemployment benefits are also on offer for those who have lost their jobs, with additional payments above standard offerings for up to four months. If you’re not sure what you’re entitled to, ask your local government spokesperson for assistance. 

Look at Mortgage Deferment

In a worst-case scenario, some people might be struggling to meet their mortgage repayments. The average median monthly mortgage payment in the US is $1,100, which can be quite a substantial amount for any family who has lost a source of income

Fortunately, many mortgage lenders are more than accommodating during the COVID-19 outbreak and may be able to offer mortgage deferment for up to 120 days. 

Finances

Slash Your Spending

Now, more than ever, it’s crucial to look at non-essential spending with a critical eye. Even small changes can have a beneficial impact during these tough times. 

Put those cable TV subscriptions on hold, and be leaner with your grocery store spending. Go through your outgoings with a fine-tooth comb to determine if you can put any payments on hold until after your household begins earning again. 

Slashing your spending may not be the most desirable option. Still, it may be necessary if you want to make sure you don’t exhaust your current cash levels at a rapid speed. Remember to check your credit card statement for any automatic payments you might need to cancel. 

Plan for the Future

No-one would have anticipated that a global pandemic would affect us in our lifetime, but here we are. While finances might be tight, it’s worth thinking about emergency funds and savings accounts for future situations that might require them. 

Currently, 69% of Americans have less than $1,000 in savings. While living paycheck to paycheck is the reality for many, others simply don’t set aside money for a rainy day. 

When your income stream steadies itself, and you’ve taken onboard various ways to cut costs, it’s worth looking at saving schemes. By having a rainy-day fund, you are putting yourself in a desirable situation should you find yourself with cash flow issues in the future. 

The COVID-19 pandemic knocked the world for six, but it allowed us to evaluate how we live our lives and how we manage our money. Ask for help when you need it, and even consider mortgage deferment if it’s something your financial institute offers. Support is available in many different ways, so don’t be afraid to reach out.

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Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

3 Comments

  1. It is a smart time to bolster personal finances as much as possible right now. Fortunately or not, the pandemic built-in some automatic money saving for our household. We completely stopped eating out (even take out), which was a huge savings. We completely stopped going to concerts, sporting events, and even going out to meet friends. Also, a huge financial savings. Of course we are looking to all of these things returning, but in the meantime, at least it has been nice to save some money.

    • Yes that is so true! Our lockdown has prevented us from splashing out on any entertainment or luxuries. Unfortunately a lot of people in our country are completely out of work due to this pandemic. I am so grateful that I am a blogger and can continue to work. 

  2. hello,

    you have a great article there.

    you are definitely right that this is the right time to earn a passive income because this pandemic disease has caused a lot of people to stop working from there current jobs and some even losing the jobs ad residing completely

    have really loved the fifth way that is “PLAN FOR THE FUTURE” 

    you see! a lot of people don’t do savings for the future this means that they do to get prepared at all thinking that they will still earn from there current jobs 

    thanks for sharing

    Stephen.

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