How I put my Coins to work during COVID to become DEBT FREE!
COVID reeked havoc on the U.S economy with working class households still facing financial hardship and unemployment six months later. My family personally experienced furlough, income concessions and loss during this time. But I’m sure you’ve consumed enough coverage regarding the pandemic and the black cloud of doom it cast monetarily, physically, mentally and socially and like most of us you’re ready for it to get the hell on!
This year I applied everything I have ever learned about planting seeds during times of economic downturn; and capitalize on every coin to become debt free (except for home mortgage) before year end.
What are you working with? In my case 30% loss of income/commission. This is why multiple streams of income is critical. I earn via online sales of book/merchandise, and bookings in addition to my 9-5.
Where can you trim the fat? everything was closed; no need for extensions, lashes, gas entertainment budget etc.
Then lockdown/safety regulations introduced new needs/demand. Where can I learn/apply new skills to earn additional/replace lost income? For me that was identified in the form of personal training.
I created a small socially distanced fitness class and charged a small fee while gyms were closed. I applied all of the proceeds to my smallest debt balance. (student loan) The sweat equity was 4 hrs/week, the same time allotment I would normally spend working out anyway.
Because I work in a sales profession, commission opportunities although heavily incentivizing are not guaranteed. I have always created budgets based on base salary only. This is known as living within your means and it is a skill of obedience and sacrifice that research says our generations is not good at. When it sucks, sit down somewhere and keep your eyes on your long-term prize.
I purchased my first, modest home in 2009 at the age of 23. I was ready to move a million times, particularly after life and income changes or frustration driving 45 min outside the city to/from every social function but wanted to maximize the investment. The beginning interest rate was 6.5. refinanced to 4.5.
How do you know time is right to sell? Interests rates were at an all time low as a result of the market, yielding thousands of dollars in savings on loans.
A portion of the profits paid off my car, almost 2 years early, also saving hundreds in interests.
Where should I plant my overflow? Dump into retirement accounts. High yield savings account for your emergency funds and/or invest!
Like me, you may not have been exposed to financial literacy early, we can thank COVID for there being “no time like the present!”
After researching opportunity zones, I was referred to a great fund developing in 3rd ward Houston.
Now link with a professional advisor to help you get started and get to work!
P.S. I know looking forward to the holidays is providing much needed reprieve from the struggle that has been 2020, but do not go into debt behind Christmas!
In all seriousness,
Kat
Prov. 13:22