The spread of coronavirus has been catastrophic not only for our health but for the world economy as well. As a result of the pandemic, millions of people all over the world have been affected in some way or another. A lot of people have lost their jobs and many businesses have closed down.
With mandated lockdowns and stay at home orders, people are scrambling to look for some extra money to sustain them through this crisis. According to FutureLearn, statistics from the US Labor Department show that US citizens lost around 701,000 jobs in March while in April, 6.6 million Americans reportedly filed for claims. In the UK, one-third of the citizens are financially impacted by the outbreak particularly women and those who are under the age of 25 being the most affected. Many households are going through a difficult time and no one can tell how long this crisis will continue to plague the world. Nobody can predict when people’s lives will go back to normal. Some even foresee the continuous increase in unemployment rates in the next couple of months. If you’re looking for ways on how to make money during this difficult situation, we’ll give you a list of ways to help you make ends meet.
Global Economic Forecast
According to the IMF, economists are having a difficult time analyzing and predicting how the global economy will turn out once the COVID-19 pandemic ends. However, experts believe that the economy will be able to keep up with the situation not earlier than 2021.
Experts predict that by the fourth quarter of 2020 or first quarter of 2021, we’ll be able to see the economy slowly get back on its feet. For now, the global economy will continue to struggle due to the impact of coronavirus. The economy will have a lot to sort out and fix.
Economists believe that the post-coronavirus economy may even start deglobalization and higher debts. The IMF announced that we will most likely expect the worst recession since the Great Depression this 2020. If this is the case, companies and workers should prepare for the worst.
Ways to Make Money Here are some of the things you can do to ensure that you have enough cash flowing in your pocket whether it’s a one-time transaction, temporary gig, or can potentially be a long-term source of income.
Start an online class. This step is ideal for people who have specialized skills. You can maximize your talent by teaching a particular subject or skill online. Whatever it is whether its teaching English, launching a Zumba class, or crafting guitar lessons, there is a huge market out there waiting for you.
A lot of people are finding ways to entertain themselves or take the time to learn a new skill. All you need is high-speed internet and a lesson plan. There are plenty of websites and apps to help you build and promote your online class.
Work in a delivery service. One of the fastest-growing industries today is the delivery service. With people forced to stay at home, many are turning to online shopping and delivery to supply their essential needs. Some companies such as Amazon are hiring employees to be able to serve the surge in demand for online orders.
Other businesses that serve online shopping and delivery services (food and non-essential items) may also need an extra pair of hands. Another option is to do it on your own and offer your services to your neighbors. However, make sure that you take the necessary measures to ensure your safety first should you decide to get into this kind of work.
Start your own vlog. Many people are entertaining themselves by watching their favorite shows on various streaming services including podcasts as well as keeping tabs on vlogs on YouTube. Hence, if you’ve always wanted to start your own vlog and channel, now is the best time to be a content creator.
However, this may not be an instant money-making business. This type of platform is more ideal for people who are not looking for an immediate flow of income since it is a long-term investment. You’ll have to choose a platform where you’d like to start your channel.
YouTube is a popular way to get started but you can use any platform that’s more suitable for your audience. You can earn some revenue through affiliate links and sponsored posts. The only equipment you’ll need to get you started is a reliable smartphone. Once you get a hang of it, then you can start investing slowly in accessories such as a microphone, lighting box, and software.
Become a reseller. One of the simplest ways to earn extra cash without investing is to become a reseller. You can search the internet for products that are demand right now. For example, face masks have been selling like hotcakes in the market ever since the outbreak was announced as a global pandemic. Use this opportunity to connect with suppliers and ask them if you can resell their items.
Many people are scrambling to purchase face masks and by acting as the middleman between the customer and the supplier, you can easily earn some cash without shelling out money.
You can also opt to sell old clothes or possessions online. There are plenty of sites where you can post your stuff. Start by cleaning your closet and room. You might just discover some pieces worth selling.
Ask for cash assistance. One way of helping you get through this tough financial situation is to file for cash assistance. In the US, the CARES Act was established to provide cash assistance to Americans. This government-funded program provides cash up to 13 weeks of unemployment compensation for Americans who do not have enough for daily expenses. This includes freelancers, contractors who do not have work benefits. Check if you qualify for the program in your state. People who lost their jobs over the coronavirus pandemic are also qualified for cash assistance. Become a tutor. If you have a knack for teaching and have the patience for it, you should consider taking a tutoring job. With schools closed, many parents are wondering how their kids will be able to cope with their education. Many parents are homeschooling their kids. You can offer to help their kids with their homework or provide distance learning. This can give parents a break, especially those who have to work full time from home. Start a freelancing job. One way to make money is to become a freelancer. Many companies are offering various work from home jobs including writing, virtual assistance, appointment setting, data entry, and transcription.
Most schedules are flexible which makes it convenient for people who need to balance their family duties. There are plenty of websites where you can start your freelancing career including Upwork, Freelancer, and Guru among many others. How to Free-up your Money During this Crisis If you’re one of the millions who are in a tight spot during this difficult situation and trying to conjure ways to squeeze out extra money from your budget or prevent you from overspending, we’ve gathered a list of tips to help you out. According to financial experts, the first step you need to do is reduce your expenses, increase your income stream, and make borrowing the last option.
Review your budget. Before anything else, the first step you need to do is to take a look at your money and budget. Sit down and create a list of your expenses then assess your current budget. The simplest way to tell if you have extra cash is to find it in your budget.
Due to the lockdown, people are forced to stay at home which means that they are also spending less. With restaurants, bars, and other entertainment venues closed, people are actually saving money while they are cooped up inside their homes. No dining out is equivalent to extra money in your budget.
Check your expenses and budget to see which category you might be able to save on. By diverting the money that is usually allocated on leisure activities such as vacations, gym memberships, and trips to the salon, you might discover you have more than enough in your pocket for the meantime. Review your budget to determine if there are other opportunities where you can save your money.
Protect your credit card. If you don’t want your credit card balance to blow up, make sure to avoid charging more on your credit card unless necessary. Also, to make it easier for you to recover once you adjust to the new normal, you can consider some of the steps we mentioned above particularly reselling your pre-owned items,
This prevents you from taking out a loan. If you absolutely need to swipe your credit card, make sure to use a zero-percent credit card. Do not withdraw from your retirement account as much as possible.
Hold your loan payments temporarily – Financial planners would not normally advise you to hold-off paying your mortgage or student loans. However, the stimulus bill allows borrowers with loans to suspend six months of payments without interest as long as the loan is backed by the government. You can just go online and log-into your account and select the forbearance option.
Seek help from your community – If you’re having a hard time getting extra cash, consider asking for help from your community. You can turn to religious organizations, foundations, and food banks for resources. Community organizations have set-up emergency relief funds. They provide basic necessities including food and rental assistance while some can provide emergency financial assistance.
What to Avoid We all make different amounts of income and we have varying levels of necessities. What may be essential for one person may not be the case for another. Nonetheless, we all need some cash to pay for our bills and living expenses. Financial experts advise you to be on the lookout for scams. Do not give away your personal information including your social security number to people. There are many scammers who are desperate, especially during this time. Payday loans – While getting a loan may be one of the easiest ways to get money in your pocket, according to financial advisers, it’s better to avoid getting payday loans or short-term loans with a single payment scheme.
Loans may sound appealing but they often come with high interest and fees. The high fees eventually lead to many borrowers finding themselves unable to pay the loan. Therefore, they end up with more debts.
Credit card advance – This one is not a practical option. Similar to payout loans, they also come with high rates and interests. At the same time, this can hurt your credit score in case you max out your credit card. When you need to use your credit card, go for a 0% promo rate.
Final Thoughts The first thing you should do is to assess your budget and savings. Check your emergency funds and see how long you can stretch it. Having an emergency fund can help pay for your daily living expenses and bills in the meantime. Take some time to review your savings as well and see if you can pull up some extra funds from it. Now is a good time to sit down and list down your expenses. We highly urge you to consider cutting back on your expenses particularly unnecessary items. You’ll discover that you can save a lot by getting rid of items or services you don’t really need such as subscriptions and memberships among many others. Financial advisers recommend setting aside at least six weeks of your salary to help you get by this trying time. However, since nobody can tell when this pandemic will end, you might need more. The immediate step you can do now is to lower your spending, save, and create ways that will help increase your cash flow.