Financially Survive a Pandemic
Living in 2020 is a unique experience to say the least. Between canceled graduations, learning to homeschool, working from home, or changing jobs completely, 2020 has been the year of change. Why not make it a year of financial change too?
Start with a budget.
Regardless of how the COVID-19 pandemic has affected your family, the first place to start is with a budget. By having a budget, you can plan how you are going to manage your money. In it’s simplest form, a budget is income minus expenses. Obviously, for the average person or family, it can be much more complex than that.
The best place to start a budget is a basic list of your net income (after taxes) minus your known expenses (housing, utilities, phone, etc.)
We have some great resources on how to start a budget. Check out a couple of them below:
Cut out the extras.
After you’ve started a budget, especially in times of financial hardship, it’s important to pare down where you can. This means evaluating your current expenses, and figuring out where you can cut back. Typically, when we counsel people on their budgets, or when we need to make cuts in our own budget, we start with the extras. Anything outside of a basic need can be considered “extra”. We look at entertainment expenses like cable, subscription services, streaming services, etc. These are all considered extraneous, and when cuts need to be made, they should be the first considered. Another area we look at is the grocery budget – in our household, we pare down our groceries to the bare minimums. One of our favorite meals, albeit maybe not the healthiest option, was past when we first started our budgets. A box of generic pasta noodles typically costs about $1.00-$2.00, and a jar of pasta sauce is about $1.50. We’d get four meals out of it, for $3.50. Beans and rice is another way to accomplish this, as a way to add substance to your meals.
Sell/borrow/share what you can.
Another great practice we have when times are tough is going through your household for things you no longer need, and can potentially sell for some extra cash. Old video games and systems can accomplish this, along with many other basic household items. When it’s important for you to save money or get out of a difficult financial situation, it’s key to evaluate what you really need and don’t need.
Work extra hours.
In times of financial struggle, doing whatever you can to make ends meet is often necessary. Whether it be taking on extra hours of overtime or shifts at work, or finding a side hustle/second job. Side hustles can be things done from your own garage! And second jobs are always going to be an option, whether it be picking up a few night shifts at a grocery store, or waiting tables.
Ultimately, when it comes to financial hardships, it comes down to what you are willing to sacrifice in order to stay above water. The phrase “short term pain, long term gain” comes to mind in these instances. A short term struggle will, in the long run, help you be much better off.