The pandemic has caused countless individuals’ significant financial turmoil. This guide explores how to get your finances back on the right track.
Are you struggling financially in the wake of the Coronavirus pandemic? You are not alone. Whether due to rising living costs or issues with redundancy and reduced pay, countless families are still finding it difficult to get their finances back on track. Here are some key options that can help you recover.
First, you should consider how you can save more money on your personal budget. While this is the least “fun” way to get your finances in order, it is sometimes the quickest. This may mean becoming more frugal and cutting unnecessary expenses. Saving money in your budget will ensure that you have more to spend on necessities and can help ensure that you are able to pay off any debts that you have accumulated through the pandemic. One of the ways that you can save money is by using energy efficient tools. For instance, you may want to limit the amount of energy that you are using around your home daily by switching to a smart thermostat that only heats/cools when your home, only during daytime hours, etc. It’s worth doing a quick search on energy efficient rebates in your state to see what other incentives are available that will allow you to save on your monthly utilities, as well has help pay for any upgrades it would take to become more efficient.
Ask for a Raise
This may seem unrealistic to many, but it’s surprisingly easy and low risk to simply ask your employer for a raise. If you’ve managed to keep your job during the pandemic, you are probably adding value to your employer and asking for a raise can be the simplest way to help stay on top of your finances and get ahead. Make a detailed report of what you do, the value you add, how inflation has increased living expenses, how you intend to add more value down the road, etc. And what’s the worst that can happen? If the answer is “No —this gives you the opportunity to ask what you need to do to earn that next bump in pay. Having this goal in writing from your employer gives you a clear path to that next pay increase.
Develop Second Source of Income
Next, have you considered developing a second source of income? Financial experts agree that these days that having different channels of income to fall back means less risk, regardless of how much you earn originally.
There are numerous options that could be suitable for a secondary income including passive possibilities, such as trading and investments, renting out spare rooms, selling items you don’t need online, etc. The right source of second income will help you stay on track financially and pay off any debt that may have accumulated during the pandemic.
Devise a Debt Plan
Many people did go into debt during the worst of the pandemic, whether it was because you lost work, or your housing expenses increased. If you have seen your debt increase during the pandemic, it’s important to explore creating a debt plan. You may want to speak with a debt advisor to discuss your options. One possibility worth exploring could be a debt consolidation loan. This helps ensure that multiple debts from various creditors become more manageable, can lower your monthly payment and/or the interest you’re paying. Just as debt can snowball and your balances increase quickly, acting on a debt plan can snowball in the right direction as you pay down balances and interest becomes more manageable.
Get Your Home’s Finances In Order
Finally, consider taking steps to make your housing expenses more affordable. One of the ways you can do this is through refinancing. The right refi solution from a home lender will help ensure that your current loan is affordable and can possibly help pay down other debts with any equity in your home at the same time.
Alternatively, if you have not yet purchased a home, now could be the right time to stop renting and start buying. In the long term, purchasing a property ensures that your monthly expenses are as “fixed” as possible – no unexpected rent increases or evictions are on your horizon.
We hope this helps you understand some of the key steps that you should explore to recover financially from the impact of the pandemic. If you are interested in purchasing a home to gain more financial stability, please do not hesitate to contact us today. The Lindley Team will be happy to assist you in finding the right loan that suits your specific situation and goals.
If you’re interested in purchasing a new home or refinancing in the Portland area, be sure to contact us today to find out how we can help make your dreams come true.