Has the Coronavirus caused cashflow issues for your family? Do you wonder what you can do to improve the cash you have on hand to pay the bills you need to pay? There are a few things that you can look at.
First of all, where can you get additional funds? If you have a retirement plan, you may be able to pull out some money, although this is not ideal. But in dire straights, you can generally pull out cash and use that to pay your bills.
You might have some money stashed away in savings that you haven’t seen for a bit and can pull funds from there as well. You might also have a life insurance policy that has a cash value, and you could pull money from there and use it temporarily. And once you get enough money to pay that back, you can reinvest it into the insurance plan.
You might be able to have a home equity line of credit. Although again, not ideal, would give you access to cash. Perhaps you have family members who are better off than you, that you could get a loan from for now and use the funds to keep you up to date on bills, and then pay them back when your income has increased.
Some other things you can do, or look at, is reducing your expenses. Are there any unnecessary things that you’re currently paying for that you can eliminate? Perhaps you can change your cell phone plan or reduce the subscriptions you have for Netflix or Hulu, or other things such as that.
Can you renegotiate the costs for some of your bills? Many are putting off paying their rent or mortgage due to the allowable permissions to do so. If you can keep up on those, I do recommend that you do that because again, that’s just a deferral and is not forgiveness. And so you might end up with a bigger bill later on rather than being able to keep up to date. But with financial struggles happening now, that is an option that you do have if necessary.
Hopefully, things will turn around soon. You’ll be able to generate more income and be able to put back money that you’ve pulled out of 401(k)s or insurance plans. But again, if you can reduce your expenses while looking at additional income sources, that would be great.
If you have any questions, feel free to reach out at affordablebookkeepingandpayroll.com. That’s www.abandp.com for short or (310) 534-5577. Wishing you great success as this year comes to a close.
