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YTMP introduces a new guest poster – Katie Conroy.
In April 2020, the unemployment rate in the United States jumped up to an almost mind-numbing number. Today, it’s quickly descending, thankfully. But, many millions of hard-working people are still out of a job. And with the pandemic continuing to threaten the world as we know it, some of these may not see their regular paycheck until 2021. If this sounds like you, keep reading for some ways to stretch your budget in the uncertain days ahead.
Learn to budget
Your Tax Matters Partner has covered the topic of dealing with debt and financial issues before. Perhaps one of the greatest pieces of advice given on this front is to create a budget. Contrary to popular belief, sitting down and looking at your finances won’t elevate your cortisol levels. Instead, it can actually reduce stress by helping you have a realistic idea of what you can and can’t afford.
Learn how to budget, which starts with calculating your monthly expenses. You’ll need to separate these into two categories: needs and wants. Needs include things like your mortgage and food. Your wants are the extras that make life a bit happier, like premium cable service or a morning latte. When you know what you spend, it’s time to see how much money you have coming in and what you can realistically afford. You may have to cut out some of the wants and adjust how you manage your needs, but having a grip on this early is the best way to make what money you have left work for you.
Get an education
Right now, you may have little money, but time is in high supply. Use it well. You might look into earning an online degree in something you’re interested in. If you love computers, for instance, WGU notes information technology is a lucrative option. Those who love people might prefer counseling, social work, or healthcare management. All of these are in-demand careers that can help you go back to work with a bigger paycheck than before.
If you don’t have the money to invest in a formal education, you can still access career-enhancing seminars, workshops, and certification programs online. You can always teach yourself a new practical skill, such as welding, mural painting, or photography. Now is an excellent time to evaluate your passions and see how you can turn them into profits.
Cut costs
You already know that it may be necessary to reduce your wants. But, considering the average US household spends nearly $8000 each year on food, when you are living on a tight budget, you’ll have to get creative in providing for your needs as well.
You can do this in a couple of different ways. At the grocery store, for example, stock up on staples, such as rice and beans. These are highly nutritious and ultra-affordable bases for many different types of meals. You may also consider swapping out your skills for those of other people. For example, if you are a photographer, trade a portrait session for house cleaning. Bartering, which Investopedia explains is the oldest form of commerce, is a great way to get what you need without dropping dollars.
Say hello to the side-hustle
Getting an education, cutting back expenses, and trading your services will only go so far. When you’re in a tight crunch, it’s time to consider a part-time job or, more relatable in today’s freelance revolution, a side hustle. Monster explains that renting property, driving a rideshare, and opening an e-commerce shop are great side gigs. And, these may even help you replace your full-time income if you’re willing to put the time and effort into making your hustle of choice an entrepreneurial endeavor.
Having to stretch your money is never fun. But, ultimately, it’s something that many of us experience in our adult lives. By learning how to budget, reorganizing your idea of what you want and need, and looking for innovative ways to trade, you can make your money last. And, worst case, you go back to school or start a new career doing something you love.
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Katie Conroy is the creator of Advice Mine. She enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education and research.