The Pandemic has been one of the worst disasters in History. It’s resulted in over 6 million cases within the United States and 190,000 deaths. It’s a serious disease that not only changed our lives forever, but also our financial situations. Unemployment rates skyrocketed and many saw their future as unstable and uncertain.
We were forced on lockdown and many haven’t left their homes in months. Working from home is the new normal and society was forced to adapt. We’ve turned to eating out and online shopping to curb our boredom. Countless businesses were forced to close their doors, yet our spending only increased.
Credit card utilization increased across the US, but only blind eyes were turned to it. We were spending more than we made, which is many cases was $0. Unemployment helped keep many afloat, but still, we did not stop. That stimulus check was already spent before we received it.
This situation put us in an uncomfortable position and we were forced to find ways to bring us comfort. Unfortunately that checkout button was just a temporary fix.
With the world slowly getting back to normal, we are forced to look at the damage we inflicted upon ourselves. That credit card bill is staring back at you with hungry eyes for you to spend more. Your bank statement blowing tumble weeds in the wind. Your financial situation isn’t looking great and now you’re fighting back the anxiety trying to find ways to pay it off.
Below are 5 ways to get your finances back on track during this Pandemic.
Credit Card Relief Opportunities
Debt has become such a common occurrence these days, especially during the Pandemic. We have turned to Amazon and Uber Eats as coping mechanisms to get us through this situation. But now, with the due dates getting closer, the stress of trying to find the money to meet that payment is getting worse.
You may have spent over your means and can’t even meet the minimum due. The solution is to call your credit card company. You are not alone during these times. So many people are struggling and your credit card companies have great relief programs in place to help you.
If you were negatively affected by COVD-19, they are willing to give you a grace period on your payments. That extra month can be a godsend, giving you the time to get your finances in order and come up with the money to get you through.
This has helped so many people already and they are continuing to remain open-minded with their customers.
Cook at Home
This sounds obvious, but stop ordering out! The prices are exuberant, the fees are outrageous and somehow they always mess up your order. Cooking at home can be a lifesaver to your wallet. Finding delicious and easy meals really cheap are available to you.
New York takeout meals for two can be $40 to $50 every night, which quickly adds up to around $1,200! That doesn’t even include the other two meals. It’s so expensive and meals even more delicious can be made right in your own kitchen. Meals can be made for under $10 a night, which could save you about $900. This can especially happen if you’re smart about staying on budget and maybe even shopping for off-brand items.
Another option is to take advantage of family members living close by. A Sunday night dinner can be a great tradition to keep alive or even start during these times. It’s a great way to stay connected to the ones you love and it doesn’t hurt to get a free meal either! I’ve fully taken advantage of this by eating at my In-Laws 4 to 5 times a week. My wife and I have saved so much money this way.
Please don’t put others at risk if you are vulnerable to COVID-19. Quarantine responsibly.
Stay Local
A big expense for many are transportation costs. Staying at home everyday can mean big savings for your pockets. You don’t need to fill up your gas tank several times a week or buy a Metro pass. This can save you hundreds every month.
If a social distancing event is happening, make sure it is local and possibly even walk there! Unless the event is a bit too far. Anything to save a couple of bucks. These days transportation, for most, only includes driving to the grocery store and back. Stores may be starting to open up around you, but don’t forget that credit card bill that’s due soon!
Tax Deductible Office Space
Since offices are now closed, most of America is working from home. This means less money spent on work attire and the idea of commuting is a thing of the past. It’s become a whole new world of opportunity, sliding out of bed, putting a nice shirt over your pajama pants and going into a meeting. You are staying safe during the quarantine and you’re also keeping money flowing into your bank accounts.
But with the extra time spent at home, your utility bills will increase as well. You’re spending more time using the electricity, which can add up month over month. Luckily, there are tax breaks available to those that work from home.
If your work area is more than 300 square feet, you can utilize the home office tax deductions. If your home office space being used is 400 square feet and your total home is 2,000 square feet, you would be able to claim 20% of your home related expenses. That includes Internet fees, insurance, mortgage interest, etc.)
Note: I am not a tax professional. Please do your own research and talk to other professionals before claiming your home office on your 2020 tax forms.
Make Coffee at Home
One of the biggest changes my wife and I made in 2020 was to start making our own coffee from home. Since moving to New York, I would go to our corner bagel shop and buy coffee for the two of us. The total was $3.75 every morning. It doesn’t sound like a lot, but for an entire month that adds up to about $112.50. But many times the coffee tasted terrible, they messed up the order I get every single day or just walking outside in all types of weather was a nuisance.
Since making it from home, it’s always good, since I use the same measurements day after day and we’re saving a ton of money. A pot making 4 cups of coffee would cost less than a dollar a day. This includes creamer, sugar and a tub of coffee grinds.
For those that hit up Starbucks every morning for your caramel iced double shot espresso macchiato whipped almond milk grande drink, please don’t. That sounds disgusting, but a Starbucks drink can cost on the low end, $4. For one drink that is very expensive and can burn a hole in your wallet real quick.
I’m not saying you should never have Starbucks. I believe it’s always okay to treat yourself appropriately and within your means. Getting this every single day is very expensive and will help prevent you from getting back on track financially. It won’t be the single reason for harming you, but it doesn’t help.
I hope these tips will help you get back on track financially and inspire you to continue living within your means and tracking every expense made to help make smart decisions.
