2020 had been a rough year many of us would like to forget about. There was high unemployment, incredible stock volatility, massive deaths and the greatest political divide we have ever seen. Throwing the covers over our head and waiting until 2021 was a popular idea at the moment. We would like to forget everything that has happened and try our best to move forward.
But unfortunately, we are forced to charge through these rough times and survive. We were all on lockdown for months, leaving entire city streets vacant. It seemed like the entire world just stopped for a moment. Putting the circumstances for it aside, it was almost beautiful.
We all experienced hardships we never once thought possible. The jobs we loved or relied on were removed or the health of our loved ones was compromised. My Father-In-Law was hospitalized with COVID towards the beginning of this pandemic, giving us all a fright. Thankfully he recovered and is back to his old self.
Financial hardships became a common thing. With no job or cut hours, money became tight for many people. The luxuries we once loved, now became nothing more than a distant thought. What was important to us a few months back was now replaced with what truly mattered. Our survival.
That sounded a bit dramatic, but really that is the truth. Many of us came to understand what is really important. That is our health and the wellbeing of ourselves and our loved ones. Designer items and the next big shiny thing wasn’t even a thought in our mind.
From this terrible tragedy came some good. There were some financial things that came out of this that were positive. These were game changers and have really been a blessing, especially for those that needed it most.
Mortgage interest rates are all time low
Mortgage rates hit all times lows during this Pandemic. House prices and extreme competition are also prevalent, but these historically low rates have opened the doors for many. This has allowed many to finally consider home ownership and actually afford ongoing payments.
The Fed’s massive bond buying program was started to support our economy and keep it from totally crashing. This caused the low mortgage rates we are seeing today. The great news is that we are probably going to see these low rates for some time now.
The mortgage process became much stricter, requiring higher credit scores and better overall financial security, but the facts don’t change. Low interest rates will give you lower monthly payments and a more management living experience.
Savings Opportunities Working From Home
With the entire world on lockdown, companies had to become resourceful and find ways to keep their doors open and their employees working. Working from home has become the new normal for many, never having to bother coming into the office.
Before I began working with my wife full-time I was lucky to work from home. For 4 years I was able to sit at my desk at home and do my work, never having to worry about commuting or office politics. I simply woke up and opened up my computer for the day.
Now many people are able to enjoy that luxury themselves. By staying at home, people are now experiencing financial benefits to stay on their couch. We no longer need to pay for train passes or for gas from your daily commute. We are seeing so many benefits to avoiding the workplace.
Besides keeping our pajama pants on all day, we no longer need to worry about finding a quick bite to eat before running into the office. If you keep a fridge stocked with breakfast and lunch you can save even more money with your food.
Don’t forget about the tax deductions related to a home office. You are able to write a portion of your home or apartment off that is used for your job. Another financial benefit to working from home.
Financial Support Is Now More Available
While unemployment rates were record high and financial hardships were seen everywhere, financial companies came out with such amazing support for their clients. Credit card companies were now offering relief programs to those struggling or having a hard time.
This was something I used to get myself on the right track financially. It was the break I needed to help me stop drowning in debt and get me ahead of my payments. With a simple phone call I was able to push a credit card payment to the next pay cycle and give myself a month reprieve to catch my breath and knock out the debt once and for all.
These programs have changed so many lives, offering their support for those that needed it most. All of us have credit card debt, so having the option to call and tell them you can’t make a payment this month or need a few weeks to get the money together was life changing.
Even student loans were put on forbearance until the end of the year. No interest is being accrued during this time either. Just another much needed break to get us all through these rough times.
Final Thoughts
This Pandemic was likely the worst thing that will ever happen to us. Many loved ones were lost and our financial future was put into question. Some still worried their future and how they will survive until their next paycheck.
But with these harsh circumstances comes some light. New opportunities arose to help us get through it like credit card relief programs and the Stimulus check. Maybe even a second stimulus check one day?
Home ownership is now becoming a possibility for some now that mortgage interest rates are at an all time low. Also working from home is now more common and leading to saving much more money from avoiding that daily commute and expensive lunch time break.
We have much more help than we realize during these hard times. These programs are here to help us and to remind us we are all in this together.
