COVID-19 - What to do if you miss a paycheck?

Topics:" Covid-19, Finances

1. Create a budget and use it.

A budget will allow you to see objectively where your money is going and where you can make sacrifices. If you don’t currently have income, make a budget with the money you currently have. There are several online tools to help you get started. This budget tool is free and easy to use.

2. Focus on the most important things.

Spending on food, utilities, shelter, and transportation will be your top priorities— in that order. Once those are covered, prioritize the rest. There might be some bills that go unpaid but communicate your situation and do what you can.

3. If you have debt, pause the extra payments.

When things get back to normal, go back to tackling your debt. For now, focus on the priorities mentioned in number 2.

4. Sell stuff.

Be creative and radical! What do you have that you could turn into cash—extra clothing, household items, or even a boat?

5. Take on extra work or a side hustle.

Look for opportunities to bring in income. Find out who needs extra help during these unusual times—grocery stores, delivery positions, etc. Think outside the box—grass cutting, babysitting, or other odd jobs in the neighborhood. Reach out and let others know you are available.

6. Look for ways to cut unnecessary items in your spending habits.

Be ruthless with your spending. Cut subscriptions, take-out food, and even cable. These cuts don’t need to be permanent and can easily be reinstated once the storm passes.

7. Ask for help.

Your church and your community groups won’t know your need unless you tell them. Reach out and let them know how you are struggling. Grace Church also has financial advisors who would be happy to help walk you through these steps.

Adapted and condensed from Dave Ramsey’s blog. Coronavirus: What to do if you’re out of work. March 2020