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The pandemic has unfortunately caused economic hardship and financial stress for many people in 2020. Unemployment rates soared during the country-wide shutdown to slow the spread of COVID-19, and many people experienced change this year.
While financial stress is sometimes unavoidable, there are steps you can take to reduce the overall burden on your mental and physical health. Take time to address self-care, get help with your finances from The Purpose of Money, seek out options for financial relief, and use these tips to help ease your stress.
Use Self-care
Your financial stress cannot be fully ignored, but it can be managed through dedicated self-care practices. There are several ways to approach self-care, from eating healthier to exercising regularly.
Eating well is one of the best ways to clear your mind so your body can thrive. While there’s no specific diet that will solve all your problems, simply choosing whole foods over processed foods will make a significant difference in your health. Take time to cook meals at home, and opt for more vegetables and whole grains on your plate.
One great way to relieve stress is through exercise. Even if you feel as though you have no time for it, carve out at least 30 minutes of each day to move. You can ride your bike, go for a walk or run, or do yoga to help improve flexibility and mobility.
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Do Financial Planning
If you’re stressing about your financial situation, it’s best to confront your budget head-on. Ignoring the problem won’t make it go away—on the contrary, it will compound your stress and cause more problems than solutions. The best option is to sit down and do some financial goal setting to make a plan for your budget.
You should also set aside money for emergencies. Save enough to cover several months of expenses in case of sudden job loss or another emergency. However, due to the uncertainty of the pandemic, aim to have up to a year’s worth of savings to cover you and your family if needed.
If you have debt from loans, reconsider your strategy. You might be able to refinance and get lower interest rates due to the pandemic.
When you look at your monthly spending budget, see where you can cut costs and save money. It’s a good time to be somewhat conservative with your spending. See where you can trim back and put that money away for savings. If you have a fully-funded emergency fund and extra income use it to invest. Now is a great time to take advantage of opportunities in the market.
You might find that the pandemic has actually helped you save money. Many people are finding that their transportation costs have gone down with stay-home orders in several places. Consider putting your saved bus fare or gas money into your emergency fund.
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Get Financial Stress Relief or Assistance
With so many job losses, the U.S. government has taken steps to help boost the economy and assist those who are out of work. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) expanded unemployment insurance benefits to those unable to work during COVID-19. As Equifax explains, extra funds are available to those who lost their jobs and also meet certain criteria.
Unemployment law works differently in each state, but be sure to file for unemployment benefits if you lose your job. It can help support you and your family while you look for a new job.
Financial stress is never easy, and it can be compounded by the uncertainty surrounding the pandemic recession. Cope with stress with self-care practices such as eating well and exercising. And, be sure to adopt a strict budget during this time. It will help you put money away for emergencies and give you more confidence in your financial future.