The COVID-19 pandemic has placed many people into dire financial straits. However, some see the current and looming financial crisis as an opportunity, and have used the “great pause” to get themselves out of debt and on-track for better financial wellness once the economy begins to reopen again.
If this seems strange to you, consider this fact – US citizens now have larger savings accounts and make more money on average than they did before the pandemic. How can this be?
Well, there are quite a few things going on here, but let’s focus on the ones that you can leverage into getting yourself out of debt and back on track during this crisis.
How To Increase Your Savings
While the $1200 stimulus check may not have even covered your rent or mortgage payment for a month, it was extra money that you wouldn’t have had otherwise, and it won’t have to be paid back. Hopefully, you put that stimulus check into savings or use the extra money to pay off debt.
It is seeming more and more likely that Americans may be getting a second stimulus payment. If you do, make sure that you are paying off debt and putting some into savings in order to have a better cushion in case of a second or third wave of the virus.
How To Increase Your Income
Now is the best time to start a business or side-hustle. Most of us save hours a day not having to commute to work, so there’s no better time to build some passive income streams than now. If you have a passion – monetize it!
How To Get Out Of Debt
Once you get your stimulus payments, increase your income, and other creative ways to get more, it’s time to get out of debt. There are many ways to get out of debt, but during this pandemic, one of our favorites is to build a strict budget and stick to it.
Now that we are spending so much time at home – now is a good time to take a good hard look at the things we spend money on and see if they are actually worth it. New clothes, fancy grooming supplies, the coolest kicks, or even expensive dinner and drinks – do those things really make us happy and are they necessary?
Many of us are missing the company of our family and friends as a result of the hideous lockdown rules and social distancing policies.
Now is that time to get into good habits – cook a nice meal and have an affordable bottle of wine with dinner while you Zoom with your family. Once you are able to see them again, you will know how to save money while also cherishing meals together from the safety of your own homes.
Instead of worrying about having the newest outfit – you will learn to care for and value the clothing you have, and how to make old outfits fresh again. Use this time to train yourself to save money, and you’ll be well on your way to better financial wellness.