Ideally, most Americans should have emergency funds for a time like this. However, reality says otherwise. With millions of Americans sent home without financial security, how can people make ends meet during this global health crisis?
Okay, so not everyone might not have emergency funds set aside but there are a lot of other people who have one in place. These are the folks that have managed their finances well and have enough to last them anywhere between three to six months without a regular income.
What are emergency funds?
To those who are unaware, emergency funds are sources of assets that are readily available to help people navigate through unforeseen circumstances that could affect their cash flow for a season.This includes job loss or transitions, dental or medical emergencies, urgent home or car repairs, and global health or financial crisis such as the ones caused by the dreaded novel coronavirus.
Ideally, your emergency funds should be enough to keep you covered for three to six months. However, this does not mean that just because you have emergency funds set aside, that you can be thoughtless in spending during this time.You still have to be wise and discerning with your expenses because we’re going into unchartered territory with this COVID-19 pandemic and we still have no certainty what the immediate future will bring.
Tightening Belts and Minimizing Expenditures
During this time that there is much uncertainty about how the economy will fare against the pandemic, you need to evaluate your spending and see where you can make certain adjustments and cut down on non-essential stuff. If your financial status will allow, consider mortgage refinancing from companies in Provo, Utah, or wherever you are in the country. It will help lower your monthly payments shorten your term.
Make a checklist of all the things you usually pay for that are not essential at this time. Perhaps you need to unsubscribe to certain leisure or entertainment services. Or maybe you could eliminate junk food from your grocery list temporarily.See where you can cut down on to help stretch your budget until the economy stabilizes.
Millions of Americans are now stuck at home coming up with different ways of making honest money. While most white-collar workers get to do remote work for their companies, not everyone has been given the privilege of a work-from-home set-up, especially those who are tagged as essential and those who work in the service industry.
Non-essential businesses have been ordered to cease operations indefinitely in light of the threat of the coronavirus. This has led to a series of layoffs and furloughs.
Americans are now getting as creative as possible to still earn money to provide for their daily needs.Restaurant owners are now offering delivery and curbside pick-ups for pre-packaged meals that you can just heat at home. Several others, like bartenders, fitness instructors, tutors, and artists among others, are offering their services online as consultants, teachers or coaches.
Still, others have resorted to selling various items online ranging from clothes to furniture to books to collectibles. Several people hire out their services to run errands for their neighbors or walk their dogs around for a few minutes. Some have taken online freelance jobs.There is no shortage of ideas here. The only limit is your imagination.
No matter how tough times are now, always remember that the American people are strong people. We will get through this as one. This, too, shall pass.