The COVID-19 pandemic has the world at HPCON C. It’s assaulting every aspect of our lives especially our finances. Do NOT panic. Since the pandemic has blown up our budgets, we’re forced to take a long hard look at our expenses and ruthlessly cut out what isn’t necessary for survival. We’ll feel better if we take control and devise a plan. Let’s start by figuring out what our resources are and what we can do to bring in cash fast.
Do Something
- Did we lose our jobs? Apply for unemployment ASAP. Benefits vary by state, most states have increased them for job loss due to COVID-19, and now they provide for the self-employed.
- The good news is companies are hiring. The bad news is probably not for the positions we want. When this is over our willingness to pitch in during a crisis can help us stand out to hiring managers and get us promoted faster.
- Our inboxes are overflowing with emails from our banks, utilities, and services offering safety nets. Are our banks deferring mortgages and loan payments? Are utilities assuring us they won’t cut off our electricity? Is satellite radio offering free entertainment? Let’s take advantage of the relief so we can temporarily divert funds to basics like diapers and formula.
Don’t do Anything
- Let’s not turn to Amazon for retail therapy. We don’t need new clothes to couch surf.
- It’s tempting to withdraw money from our 401ks in this emergency, but let’s resist the temptation. We’d not only have to play catch up paying it back, but there’s a 10% penalty for early withdrawal and we’d have to pay taxes on it. That’s three strikes.
Remember the Accounts we Usually Forget
- Need healthcare? Let’s be sure to pay for it with our HSAs. Here’s a list of acceptable things on which to spend HSA funds.
- The due date to file our tax returns is now July 15, but if we’re getting money back, let’s file now.
- Do you have a cash back credit card? We have one that gives us a percentage back when we use it to purchase gas, groceries, or at restaurants. So we do because those are all things we’re still using during the Coronapocalypse.
Live Simply
- How many streaming services (Netflix, Hulu, Disney +) do we really need?
- While in place, we can clean our own shelters (cancel the cleaning service), cook our own meals (stop DoorDashing), and use the library’s online app for entertainment (no buying books, music, movies, etc.)
- Let’s look at our monthly subscriptions (e.g., Stitch Fix, Blue Apron, Pickles Every Month Club). We probably don’t need most of them (or maybe any of them) right now.
Be Kind
- Does someone owe us money? Now is not the time to collect.
- Do we know someone who lost his job? Hyping him on our social media platforms and reaching out to people in our networks who are hiring doesn’t cost us money.
What are some adjustments you’ve made to your budget to get through COVID-19?