We’re in the middle of a pandemic, with instability and uncertainty all around us. One MAJOR impact of the pandemic is to our financial security. In this post, we dive into some pandemic survival tips to help you come out on the other side with your finances still intact.
Listen up, friends. It’s way easier to tackle a problem in front of you if you’ve proactively made a plan for HOW to tackle it. Let’s take a few minutes now and decide exactly how we would react if our jobs went away, or if our regular income decreased significantly. Remember, it’s totally normal to feel a little anxious or to have some off days.
Let me summarize our pandemic survival tips before we begin: 1) Build up your savings account. 2) Have a plan to minimize your expenditures. 3) And then, be prepared to pivot.
Pandemic Survival Tip 1!
You have GOT to have a savings account built up. That account should be able to cover 3-6 months of expenses at a minimum.
As you calculate your desired savings amount, keep in mind any exposure you have. What are your healthcare deductibles? What are your car insurance or home insurance deductibles? Are there any large expenses coming up soon? How long would it take to find a comparable position in the case of a layoff? Make sure you’re planning for the worst case scenario as you calculate that savings amount!
If you don’t have that savings cushion already built, there are a couple ways to go after this quickly.
Student Loans or Other Debt Payments
I’m never going to advocate for missing payments or stopping loan payments cold turkey. BUT, in the case of a precarious financial situation, it’s more important to build up your savings cushion than go hard at your debt or financial goals. Survival > Thriving when the deck is stacked against you.
Pull back your loan payments to the minimum amount. In the case of COVIDTIMES 2020, your student loan payments have been deferred until at least December 2020. Set up a separate savings account where you can easily deposit your typical over-and-above loan payments. There’s no reason you can’t eventually put that entire amount toward your loans. But for now, let’s hang on to it in the case you need to dip into that emergency fund.
Remember, no one here is advocating for you missing any minimum payments on your loans or credit card debt. But that over-and-above amount you’d typically throw down is what needs to go into savings for now.
Retirement Savings
Again, this tactic is only to help you get to your goal savings amount. Once you hit that savings amount, go back to investing your full retirement amount each month. Our retirement funds need time to grow, so don’t forget to flip that switch as SOON as you’ve hit your savings goal.
Pull back your retirement investing to the minimum match amount from your employer. No sense in missing out on free money. Hit that match amount and then sock away the remaining amount you would typically put into retirement into savings.
Now, if you have a super solid job that shows no indication of slowing in growth, you do you. You have full permission to go hard after your goals and your debt. But if there’s any risk you might need a fall-back cushion of cash, let’s go ahead and build that up now.
Pandemic Survival Tip 2!
Let’s figure out the bare minimum amount we need to live on. Can you adjust your living situation to be more economical? How much money do you need to have saved to get out of your lease? Is there another area you could move to in order to save some precious cash?
How much can you save by doing zero personal appointments — hair, nails, botox, etc. (I see you, girls!)? Self care doesn’t always have to cost money. Can you bring your grocery bill down by cutting out meat or processed foods?
Take a look at your budget now and develop a Bare Minimum Spending Guide. Decide what categories can be removed altogether, and what categories could be decreased significantly.
Now you have a plan in case anything happens with your regular income, or if you need an extra boost for hitting your savings goal. This also gives your 3-6 months of savings a longer lifeline so you can breathe while figuring out your next move.
Pandemic Survival Tip 3!
Knowing there is instability and uncertainty all around us, once we have the full savings amount stocked away, we’re going to make a plan for the future. A healthy money mindset dictates that we have an abundance mentality – we have ENOUGH right now, whether that’s in money, time or ability, and those resources can serve us well even during a pandemic.
Side Hustle
Use your time now to build up a home-based business or a side hustle of some kind. Spend some thoughtful, quiet time and write down where your strengths lie. What assets do you have now that could be monetized in some way? Consulting, tutoring, crafting, handy-man-ing, blogging, etc. are all great side hustles to consider. Keep in mind that side hustles take time to build up a customer base and regular income. Today is a better starting point than tomorrow.
Polish Up Your Resume
It’s always a good plan to have an up-to-date resume ready to roll. No matter whether you’re happy at your job or not, you never know what opportunities might be around the corner. Spend a few evenings reviewing and updating your resume. Consider ways you could customize it for different industries, and go ahead and get a couple of drafts ready.
Don’t Walk Away From Your Network
Now is not the time to go underground. Check in with your mentors and pals in your industry, or in adjacent industries. Be active on LinkedIn and chat with recruiters. Keep up with potential jobs, including expected salary ranges and requested experience levels.
Record scratch… please don’t reach out to people in your industry if it feels self-serving. Only do this if it’s in service to your friendships and relationships. Checking in just to see what others can do for you is yucky and not a boss-babe-move at all.
At the end of the day, our current situation is temporary. Temporary might mean a year or two (or maybe more), but we can be confident things will eventually begin to make more sense. For now, let’s proactively take the reins and do what it takes to stack the deck in our favor. Don’t forget your self care routine, either. Hang in there, friends!
I hope you found these pandemic survival tips helpful. Thanks friends!