Navigating on a Reduced Income

Many Americans are facing drastically reduced income due to the Covid-19 pandemic. Unfortunately, some people have lost their jobs or have reduced work available to them. With the CARES Act supplemental relief expiring at the end of July, extra federal unemployment benefits may be reduced. There are many ways to navigate a reduced income. It’s all about proper planning and cutting unnecessary expenses.

1. Analyze the Numbers

You need to revisit your budget and make any necessary changes. Figure out what income you currently have so that you can adequately budget what you’re able to spend.

2. Talk to your service providers and financial institutions

If you are unable to make your rent/mortgage, utility, credit card/loan, or other payments, you should reach out to your providers and financial institutions to see if they offer any accommodations. Many credit card providers were allowing their members to skip payments without any consequences. It’s worth asking even if it’s a long shot.

3. Cut out all non-essential items from your budget.

This means anything that is not essential to your life or work. For example, you may have to skip happy hour with your friends on Fridays because you don’t have the available funds with a reduced income. Of course, this won’t be fun, but it’s something that you will need to do. All these non-essentials will return once your income increases.

4. Apply for any and all assistance

Go to your county’s website for health and human services to find out what kind of public assistance they offer. This could include food assistance, childcare assistance, health insurance, work search programs, and transportation certificates. Using these services can help tremendously. Make sure you apply for assistance immediately because it can take some time to process.

5. Look for odd jobs

Exploit your talents and skills by finding different jobs that you can perform to make money. This could be as simple as working for Grubhub, UberEats, GoPuff, and other delivery services. You can also sell your own products such as masks, art, handyman work, cooking, cleaning, or dog walking.

6. Learn how to DIY

We sometimes spend money on things that we can do ourselves just for the sake of saving a few minutes. Instead of paying to get your car washed, you can easily grab a bucket and soap to scrub with. If your furry friend needs a haircut but some clippers and do it yourself. It might not be as professional is you’re used to, but eventually, your skills will improve. Doing tasks yourself will save you more money than you may initially think.

7. Stay home and enjoy free things to stay entertained and healthy

Staying home will not only help you stay within social distancing guidelines, but you will also save money by not going out. Enjoy a good book, movie, or an at home workout. This is also an excellent opportunity to discover new hobbies or talents that you may not have considered before.Navigating on a reduced income can be stressful, but with the proper planning is doable. For more financial tips, visit Balance Financial.