Unemployed due to the COVID-19 pandemic?
Don’t worry. You’re far from being alone.
In fact, according to the U.S. Department of Labor, over the past five weeks, 26.5 million Americans have filed initial claims for unemployment. And that’s in addition to the 7.1 million unemployed Americans who reported before most of our country shut down in response to the COVID-19 pandemic.
We understand you might feel helpless and out of control right now, but there are actionable steps you can take to ride out this pandemic and make ends meet.
Of course, every crisis requires making a sacrifice – especially a financial one. So, you’ll need to dig deep and channel your inner disciplinarian. But, if you’re like most of our readers, you’re already scrappy and resourceful. You have what it takes to shift to a bare-bones budget and stretch your dollars.
So, let’s get started.
1. Cut out the nonessentials
Dining out, getting your nails done, shopping for a new swimsuit – yeah, it’s going to sting a bit. But, one way to save your money is to separate your wants from your needs.
Sometimes what you need to cut may not be obvious, especially if you’ve been enjoying luxuries like name brand food items or your kid playing recreational sports for several years. But, at this point, you have to ask yourself: Is this expense necessary for my survival? Could I get by without it?
A rock-solid, crisis budget only includes necessities like food, shelter, electricity, water, financial obligations, and medical expenses. Only you can decide how strict you need to be about your spending to not only get through these challenging times but set yourself up for a successful future – you don’t want to default on loans or bills now that could result in garnished wages later. Or dip into your hard-earned savings before it’s necessary.
An extra silver lining is in the long run this will show you how much money you were frivolously spending anyway.
2. Pause subscriptions and service contracts
It’s another sacrifice that affects the whole family, but slashing costs by pausing subscriptions and service contracts can help you get your finances back on track.
Of course, if possible, explore canceling your contract first. However, many contracts lock you in with a hefty cancellation fee, so you’ll likely need to ask your provider if you can temporarily pause the service rather than cancel it. You can then easily restart the services at a later time.
Plus, instead of sitting around watching cable, Netflix, or game subscription, you can take advantage of free activities. Like taking a nature walk, planting a garden, starting a virtual book club, or trying new recipes.
3. Reduce spending on the essentials
Even as you explore these new free activities, make sure you’re also taking a sharp look at your necessary expenses. Just because they’re necessary doesn’t mean you can’t find ways to pay less.
Save money on your groceries by using coupons and buying store-brand products over name brand (from our personal experience, they’re just as tasty!). Visit the library over buying a book on your kindle. And change out your phone deal for a lower-priced option.
Other ways to cut expenses include reducing your utility costs, using public transportation or carpooling to save on gas, lowering the temperature on your hot water heater, and when needed, shopping in thrift stores for clothing items.
4. Ask for help
We get it. This is all a humbling and challenging experience. While it may be hard to take advantage of unemployment resources or ask for help, it says nothing about your character. This is all merely a way to make ends meet during unprecedented times. As the saying goes, we’re all in this together.
Check out your options for unemployment benefits and even food stamps. Several U.S. banks are also offering financial assistance in response to the coronavirus pandemic, including waiving or lowering fees.
Contact your lenders, financial institutions, and even your landlord to see if they can offer any hardship assistance. Possibly by increasing your credit card limit, adjusting your payment schedule, or, again, waiving fees.
You can also consider consolidating your student loans, refinancing your home or car, and requesting a credit card rate reduction.
If you need help with housing or food, you can contact the United Way’s 211 helpline to speak to someone who could help you find assistance.
5. Earn extra cash
Last, but certainly not least, you can earn some extra (and quick) cash by selling your possessions. Anything from books to sports equipment is fair game. And apps like Facebook Marketplace and thredUp make it easy.
We have an entire blog post dedicated to the topic that you can read here. Only two of the tactics involve leaving the house for about 5 minutes of (safe social distancing) human interaction.
Also, if you’re interested in selling any of your gold, silver, platinum, or diamond jewelry, we’re open Monday-Saturday from 10a-4p and following safe practices to make sure all of our customers’ health and well-being is protected.
Here are a few things you could sell at our store for cash-on-the-spot:
- Gold jewelry
- Silver jewelry
- Diamond jewelry
- Platinum jewelry
- Wedding/Engagement rings
- Silverware
- Gold, silver, or platinum coins and bars
- Gold, silver, or platinum bullion
- Class rings
- Vintage jewelry
- Estate jewelry
- Designer jewelry
- Broken, mismatched, destroyed jewelry
- Anything gold, silver, platinum, or diamonds
For a complete list of the items we buy, go here. Or, if you’d like an estimate, you can give us a call at 901-324-4009. We’d be happy to assist you!
While cutting back, keep in mind, this is only temporary. Good things are on the horizon for you with drive and perseverance, you can weather this storm and get to where you need to be.