Your wallet may get a little bit tighter in the coming months as some pandemic-era programs begin to disappear.
Millions of people are expected to be affected by the dissolution of programs created in the early months of the COVID-19 crisis to help people struggling financially. According to CNN, approximately 28 million people will have to start paying off their student loans beginning in October after having that requirement frozen since March 2020. October is also when some people will have to go back to work or at least look for a job at least 20 hours a week or they otherwise lose their SNAP benefits.
Leslie Boden from Money Management Counselors in Sturgeon Bay encourages families to begin planning ahead if they see potential challenges due to the loss of benefits. Creating a budget and debt management plan, cutting unnecessary expenses, accessing community resources and support networks, and exploring alternative sources of income are just some of the ways you can make a better financial transition when COVID-19 relief funding runs out. You can find more tips on how you battle financial uncertainty below.
Assess your current financial situation: Start by reviewing your current income, expenses, and savings.
Create a budget: Develop a detailed budget that outlines your essential expenses, such as housing, utilities, food, healthcare, and education. Be mindful of non-essential expenses and find opportunities to cut back if necessary. We can help with this in many ways at Money Management Counselors
Debt management: If you have outstanding debts, create a plan to manage and reduce them. We offer programs and can help you navigate a path to reduce debts and interest.
Cut unnecessary expenses: Analyze your spending habits and identify areas where you can cut back. Reducing non-essential expenses can free up funds to cover more critical needs.
Emergency fund: Establish or bolster an emergency fund. Aim to have three to six months' worth of living expenses saved in a separate account to provide a safety net in case of unexpected financial hardships.
Stay informed: Keep yourself updated on any changes in government assistance programs or new relief initiatives that might become available. Staying informed will help you take advantage of any resources that could assist your family.
Explore alternative sources of income: Consider ways to diversify your income streams. This could involve seeking part-time work, freelancing, or starting a small business from home. Having multiple income sources can increase financial stability.
Access community resources: Research and utilize local community resources and programs that can provide support for families in need. These might include food banks, rental assistance programs, childcare subsidies, and more. We help families identify eligibility and locate resources.
Support networks: Build a strong support network with friends, family, or community groups. Collaborating with others can lead to sharing resources, knowledge, and opportunities.
Prioritize mental and physical well-being: Financial stress can take a toll on mental and physical health. Take care of yourself and your family's well-being. Healthy bodies and minds can better navigate financial challenges.
