The global pandemic has caused immense disruption in the lives of people. Not only has it affected the health of the general population, but it has also caused financial repercussions. In fact, many individuals have gone out of work while a few others have experienced a dent in their financial resources.
If you’re in a financial situation, it’s necessary to check your finances, reassess your budget, and find practical means to generate some income. That said, here are some practical ways how to save up and earn some money during a global pandemic:
1. Start a business
Did you know that there has been an increase in small business applications in the US during the pandemic? This happens due to the employee’s termination from work and the unique business opportunities presented to them amid the COVID-19 crisis. That’s why some have taken the plunge and ventured into business.
If you’re one of those who were laid off from work, consider launching a business. To start and set it on the right footing, follow the steps below:
- Ask yourself why you want to start a business.
- Consider the needs of the market you hope to fulfill.
- Harness the power of digital marketing.
- Leverage your personal and professional networks.
- Create a business that can withstand a recession.
If you’re wondering what kind of business to start, consider the following recommendations from the US Chamber of Commerce:
- Mask creation and design
- Telehealth or telemedicine
- Cleaning services
- Delivery services
- Online fitness classes
- Landscaping and lawn care services
2. Have a side hustle
Financial experts say that you must have multiple sources of income to be financially independent. These include income from your wage or salary, side hustle, investment, passive-income source, and others.
Sure, it’s quite difficult to generate income in times of a global pandemic. However, it’s more important to be financially resourceful now than ever. That way, not only will you get by, but you’ll keep yourself financially secure in the long run. Just be sure to utilize your knowledge, skills, and areas of expertise in your side-hustle endeavor.
If you’re looking to generate more income, consider the following in-demand side hustles, as per Fiverr and Upwork:
- Web design
- Social media management
- App development
- Product testing
- Online teaching
3. Refinance your mortgage
It’s practical enough to consider refinancing your mortgage in times of a pandemic. Do so, particularly if you can no longer keep up with your monthly contractual payment (MCP). Besides, there’s good news among those looking to refinance their mortgage. The Federal Housing Finance Agency will eliminate refinance fees on top of home pricing and mortgage rate. Hence, it’s best to take advantage of this opportunity.
Refinancing entails paying off your existing home loan and replacing it with a new one. The new mortgage has a new loan agreement under the same or different lender. Through refinancing mortgage loans, you’ll reduce your MCP to a more affordable one. You’ll also lower your interest rate or switch from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage. Finally, you’ll get a lump sum of cash if you have enough equity (the difference between your outstanding balance and home value).
4. Get discounts from insurance providers
The CNBC Make It said that now is the best time to save up on your insurance. To do so, start by checking your current policies and see how much premiums go to your insurance, whether auto, health, life, or homeowner’s insurance. Contact your insurance carriers to ask for discounts and see if you can lower your premiums given the COVID-19 crisis.
If that’s not possible, look elsewhere. Shop around for prospective lenders and look for better deals. If you’re fortunate enough, consider switching to another insurance plan. Keep in mind, however, that insurance is generally personal. To make the most of them, be sure to:
- Understand your specific situation.
- Get multiple quotes.
- Decide on what works for your personal needs.
- Read the policies before signing on.
5. Go back to the basics
It’s good how the global pandemic has led people to stay in the comforts of their homes. The majority of the employees are now even working from home. As such, you can significantly cut down on your expenditures. Hence, knowing how to save up money during the pandemic all boils down to the basics.
Here’s how to save up and make the most of your income:
- Save extra money from the income you generate.
- Have casual savings on clothing.
- Consider having fewer trips to gas stations.
- Cook meals and eat at home instead.
- Sell those unused items.
The global pandemic has financially impacted people. But this doesn’t mean, however, that you will now be financially crippled. With all the key steps above, you will not only get by in the current situation, but you’ll also be financially secure in the future. In the end, every ailing situation leads to a new opportunity—you have to grab it.