What To Do If You're Actually Literally Broke Right Now
By Literally broke
If you’ve been financially affected by the coronavirus pandemic the first thing to remember is that you’re not alone. Many, many people right now are experiencing job loss and economic uncertainty. What's happening is in no way your fault. But if you’re waiting on your stimulus check, unfortunately you may be waiting a while.
Here are 7 things you can do in the interim to put some cash back in your wallet.
Apply for Unemployment (If You’re Eligible)
Unemployment is one of the few social safety nets Americans have access to, and it's your right to access when you lose your job. Most industrialized countries (that are not the US) are paying companies to continue keeping their employees on payroll throughout the crisis.
The US just passed a stimulus package that paid trillions of dollars to corporations, but with VERY few guidelines on how that money should be spent i.e. no one is going to stop Amazon from firing you. What I’m telling you, in other words, is that you should never feel any shame about applying for unemployment. Like...NEVER...
During the 2008 recession only half of those eligible for unemployment took advantage of it. You deserve to provide for yourself and your family, so look into your eligibility ASAP.
Congress recently expanded unemployment benefits to include gig workers and those in the entertainment industry. Even if you weren’t eligible in the past you could be now! So check! NOW!
If you want to apply for unemployment but don’t know where to start, visit Career One Stop’s portal to find your state’s unemployment website. Be prepared to wait on hold or for a web page to load for what feels like forever. There’s a lot of bureaucracy involved in this step, but hang in there, the added financial security is more than worth it.
If You’re Quarantining Elsewhere, Freeze Your Internet ASAP
Many people have fled their college dorms and bite sized Brooklyn apartments to head to their friends house in the Hamptons and parent’s house in New Hampshire.
If you fall into this category, call your internet provider right now (yes, you have to use the phone for this one) and explain that you’ve been affected by Covid-19. Many companies have hardship programs set up to help you through this time.
Another benefit of getting on the phone: you may even be able to negotiate a cheaper rate for when you return!
Cancel All Of Your Subscription Services
Go through your last three months of bank statements and cancel any and all subscriptions you’re paying for on a recurring basis. While the money you spend on them may seem nominal, that shit really does add up (and often does so without you noticing). One study found that the average person spends $237.33 per month on subscription services. Is your once-free-trial for Ancestry.com worth $237.33?!
When the economy first dipped and people started talking about layoffs I immediately canceled my Crime Junkies Patreon and went back to the free version of Spotify. $20 might not seem like a lot but when you’re down to your last dollars it can mean the difference between being able or not being able to buy groceries.
At the end of the day subscriptions are luxuries, not necessities. You can always add them back later if you ever feel compelled to find your second grandma once removed or some shit.
Learn To Meal Prep
The average American household spends $3,000 a year on eating out and wastes 103 pounds of the food they actually do purchase for their home. If you’re in dire straits you can’t afford to be average anymore.
It's time to get intentional. You have to begin brainstorming how you can make the most food for the least amount of money. This is where meal prepping comes in.
First things first: take inventory. List out all the food in your pantry and fridge. Get creative and think about what kinds of meals you can make with what you already have.
Once you’ve exhausted your current options you can begin brainstorming meals for the next week (more on that here).
In this day and age there’s no excuse not to try and at least meal prep. The internet is rife with cheap and healthy recipes. Check these out for some inspiration:
Prepare your meals in bulk and freeze what you’re not using. You’ll put up more money up front, but in the long run you’ll save a TON of money. Your new mantra is “the freezer is my friend.”
Save On Your Electricity Bill
People in personal finance love to espouse the importance of saving on electricity and until now I never really took them seriously. But the truth is that Americans typically spend $2,000 per year on utilities and even the smallest changes can save you up to 25% on your monthly bill.
The basics? If it’s sunny out, open your curtains and work by daylight, unplug everything you’re not using, and don’t leave your lights on unnecessarily. Read this list if you need inspiration on where you can cut back.
That said, many utility companies are also offering bill assistance and foregoing shutoffs. Look into what your provider is offering and contact them. You never know how they’ll be able to help!
Make A strategy For Paying Off Debt
Believe it or not student loans are still due! If you absolutely cannot pay these bills, however, call your student loans provider and discuss hardship options. Depending on the types of loans you have may be able to suspend your payments for 60 days without interest.
If you have credit card debt the same situation applies: call your credit card company stat! See if they can freeze your interest or forego payments without a penalty.
If not, it may be time to look into a balance transfer card. Yes, you’ll pay a fee (usually around 3-5% of what you owe) but you may be eligible for 0% interest over an 18-month period.
If you choose to go this route make sure you figure out your debt repayment plan the minute you’re back on your feet.
In a worst case scenario it’s okay to just pay the minimum right now. Financial guru Suze Orman is even suggesting you ask your credit card company to extend your credit so you can put necessary bills on your card. If you don’t have an emergency fund this may be your best option to stay afloat.
No matter what you decide, promise yourself that you’ll never end up in this situation again. Debt steals your income, and that’s just a fact.
Negotiate With Your Landlord
While it seems like everyone on the left has their pitchforks ready for landlords at the moment (and I get why) you need to put your politics aside and actually communicate with yours. The worst thing you can do right now is nothing, so call your landlord and explain your situation.
Before having the conversation, however, familiarize yourself with what's happening with evictions in your state. New York has halted evictions, for instance, but many states have not.
At the end of the day your landlord would rather see some money than none, so remember that you do have negotiating power (even if it doesn’t feel like it right now). Remember to get anything you agree upon in writing!
While things may seem impossible and overwhelming right now it’s important to remind yourself of the options you do have. You have inherent worth and deserve to be able to provide for yourself and your family. Make sure to also check out these free resources.
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