How to Make Up for Lost Income During COVID-19

The year 2020 has been difficult for many. According to the U.S. Department of Labor, about 55 million people have filed for unemployment since March — or the start of the American COVID-19 pandemic. After peaking at almost 15% in April, the national unemployment rate is still up around 10%.

Millions of Americans have lost jobs, been furloughed, or been put on unpaid leave. Fortunately, many are finding ways to offset their financial struggles. Some have turned to alternative sources of income to make up for lost pay during the economic downturn.

Finding a backup way to earn money is a good strategy even when there isn’t a global pandemic, especially for those who want to pay off debt, boost savings, or put aside an emergency fund. Plus, since so many roles have shifted to working from home — saving employees on commute time and costs — this could be the perfect opportunity for remote workers to pick up a side hustle.

Based on what other Americans are doing to help themselves, here are some tips for how to make up for lost income, or how to bring in a little extra income, while times are tough.

Temporary and freelance work

Since some restaurant restrictions are still in place across the country, grocery stores and food delivery services have been busier than ever. Many doctors’ offices are also hiring additional reception staff.

For anyone with a specialized skill set, there are also plenty of freelance opportunities in the world of writing, graphic design, and more.

Temporary/part-time jobs

  • Retail/grocery stores
  • Food delivery
  • Reception/admin

Freelance gigs

  • Writing
  • ​Design 
  • Photography

Online retail

With so many people spending more time around their homes, some are finding ways to make money off of things they already have (or do!). Selling lightly used items like electronics and jewelry can be a great way to make some quick cash.

Others are also turning hobbies into profit, including selling knitwear, artwork, and even baseball card collections.

Selling personal artwork

  • Painting
  • Illustrations/prints
  • Knitting

Reselling old items

  • Electronics
  • Jewelry
  • Books
  • Clothing
  • Collectibles

Other ways to earn money

The silver lining of 2020 is that there’s basically a website or app for everything. So, with Internet access and an open mind, Americans are finding out-of-the-box ways to augment their income.

For people with extra time on their hands, dog walking and consumer surveys have become popular options. Many have also opted to redeem their credit card rewards points for cash. And, for anyone with unused gift cards piled up, there are services that will buy your gift cards in exchange for cash (for a nominal fee).

When facing financial struggles, one alternative strategy to make up for lost income is to spend less. By finding ways to limit expenses on a monthly basis, people can have more access to cash — to save or put toward paying off debt

Many who find themselves with extra income decide to pay off debt using the snowball method, which starts by paying off the smallest balance and snowballs to the next smallest, until all debts are paid off. 

Source: Credello


Categories: Personal and Family Finances

Tags: Coronavirus, Financial Stability, Personal Finance, Snowball Method

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