Help with August
So Corona has made a huge impact on my finances and I'm unsure how I'm going to make it going forward? I used to bring home $3200/month but due to COVID-19 my pay has decreased to nearly $2450. I had no idea that was going to happen and my employer has made no notion when we're returning to our old hours where I'd bring in the $3200.
So now I'm stuck in a bind financially where I can't pay because I was living off the old amount. I've cut back as much as I possibly can but I'm still sitting around $2600 for my four walls: shelter, food, transportation, clothing.
Does anyone have any advice? How can I budget my cash without going into the next month? I'm struggling. I've got $500 in an emergency fund that I'm trying to rebuild after having a car accident back in May. So cash is VERY tight. I want $1000 EF ASAP.
If you really have cut to the bone, the sad truth is that you have to draw on your emergency cash or credit. While that sucks, prioritizing things that must be paid with cash in the budget is critical. After that, just try to minimize credit growth.
I'd still try to cut further. You also might be able to generate income with odd jobs on the weekend or evenings. Also keep in mind that not all industries are equally impacted, and some are even hiring. Best of luck in this stressful situation.
I'm sorry to hear about your pay cut and uncertainty going forward. I'm throwing out some ideas you could try. It's my personal belief that option 1 is the harder of the two.
1 - Increase your income:
- Can you take on a side gig? Making deliveries with your car or bike, tutoring, Taskrabbit, mowing lawns, online marketing. Maybe there are odd jobs in your neighborhood if you ask around.
- Do you have a spare bedroom you could rent out temporarily? It can be a little hard to get started, but people are still looking to move, and this is an excellent source of cash.
- I'm told that donating plasma offers decent compensation in a pinch, and is really helpful for the medical community. You can do it up to twice a week I think.
- Do you own your home? You could try taking out a line of credit on your house. Maybe not the best option because, more debt.
2 - Reduce your expenses:
- What are you calling your "four walls?" Have you optimized them from every angle?
- Can you refinance your mortgage? Negotiate discounted rent with your landlord?
- Can you eat at cheaper places or cook from home? Can you buy less red meat or better yet, no meat at all, and replace it with high protein grains, which are less of a money drain?
- If you have insurance payments, can you call them and reduce premiums by increasing your deductible?
- Are you making automatic payments on phone bills with generous data, which could be decreased?
- Are you still buying clothes outside of those you absolutely need for work? Can you pause that for now?
You will make it! I sincerely hope you don't take on more debt. Good luck!
Nathan Dowlen said:
Red Meat is super expensive and I've already thought about buying more pork, chicken, etc. (I doubt my girlfriend and I would take up a vegetarian diet.) High Protein Grains could be a good idea. Last month we ate a lot of rice and beans. (Rice is super fattening. I feel it in my joints. lol)
I feel you. I've found buckwheat and quinoa can be tasty if you cook them in chicken broth. But yeah for sure chicken is your friend. And eggs! 😄