One specific ways borrowers can feel helpless is with their job situation.

Borrowers may even hate their job, but they feel stuck because of their student loan debt. They have a lot of debt, so why would they ever rock the boat by applying to a different job? Or, God forbid, leave the career they went into so much debt for?

One of the most difficult stories I read when I was doing research for Student Loan Solution was about someone who turned down their dream job in marine biology because it wouldn’t pay enough to cover their nearly $100k of student loan debt. Instead they moved back home and took a store manager job at a retail store, which paid more than the job in marine biology.

They interviewed one of the borrower’s parents in the article and they said he seemed very unhappy. All he did was work, come home, and go to his room.

He was miserable.

He isn’t alone. There are millions of student loan borrowers in default, and millions more who are miserable in their current work situation but feel like they can’t change anything because of their loans.

If I could speak to the person in this story I would help him see how he could make working in marine biology possible.

There are always options for dealing with debt strategically. This is especially true with student loans.

If you hate your job but feel helpless because of your student loans, or this describes someone close to you, I wrote this for you. I’ll go through some of the options available to you and show you that by making a plan of action you can move on from your miserable job and not let your student loans keep you from living a happy and fulfilling life.

How Bad Is Your Situation?

 
The first thing I want to discuss is how bad your situation is. If you are being verbally, physically, or sexually abused at your current employer, it goes without saying that leaving ASAP is a top priority. I won’t pretend to understand how difficult this situation is for you, nor would I ever judge you for whatever choice you end up making, be it quitting tomorrow or staying for a longer-period of time until you have arrangements in place.

With that being said, in an ideal situation you would report your employer and put the ball in the employer’s court to make things right. If they retaliate against you, you should have a legal case for pursuing damages against them. (I am not a lawyer so please seek out legal advice from a qualified lawyer).

Now let’s focus on a less serious situation. Your job is a grind. Or boring. Or your manager sucks. The work is awful.

For whatever reason, you hate your job and want out. But you have student loans.

What should you do?

I’m going to state something obvious that I’m sure you’ve thought about: it’s easier to find a job when you are currently employed.

If you are willing to stay with your employer while searching for another job, use your disdain of your current job as motivation to take action. Update your resume, browse job openings, apply for open positions, and connect with your network. This is likely the right course of action if you have no emergency fund or a limited one, since leaving your job without another one lined up will likely result in you falling behind on bills and taking on credit card debt.

If you do have an emergency fund you will have to weigh whether or not quitting your job before finding a new one is worth it. The bigger an emergency fund you have, the better. Six months or more would be an ideal amount, but you could get by on less (and trust me, I know how difficult it is to build even a one-month emergency fund). If the economy was in a downturn I would advocate against quitting your current job before finding a new one, but with the economy being hot there is a higher likelihood you can find gainful employment relatively quickly. Regardless, you should have a good idea of how difficult this will be before you quit your current job.

In Student Loan Solution we talk about an emergency fund as an F off Fund. Having money set aside will allow you to not be reliant on anyone financially, and to tell people (like an abusive boss) to “F Off” if that’s what they deserve to hear (it’s up to you whether you say it in your head or out loud!).

If you don’t have an emergency fund, there is no better time to start than now. Even $100 a month can be beneficial, and any amount is better than $0.

This post isn’t just about emergency funds though. The underlying issue is student loans and how that makes borrowers feel stuck in their current jobs and careers, unsure how they will get out.

So let’s move into a discussion on student loans specifically.

What Does Your Student Loan Situation Look Like?

 
The type of loans you have will dictate what options are available for you. If you have never dropped all your student loan information into a spreadsheet, now is the time. Download our free student loan spreadsheet and follow the directions to populate all the details of your private and federal student loans.

Let’s start by looking at private loans and then federal ones.

 
Private Student Loans

Private student loans are becoming more common each year. One reason for this is how expensive college has become, which drives borrowers to supplement their federal student loans with private ones. The other reason is the millions and millions that have been spent marketing student loan refinance products.

With your private student loans you have a couple different options to make your payment a more reasonable amount:

• Work with your current lender – See if your current lender is willing to restructure your loan, either with a lower interest rate, longer payback period, or both.

• Refinance with another company – There are a ton of banks today offering student loan refinancing, so if your current lender isn’t willing to give you a better loan you can look elsewhere. Credible is a company that gives you free rate quotes from multiple companies. If you use my link and end up refinancing your student loans, you will get a $300 cash bonus if you refinance less than $100k and a $750 cash bonus if you refinance more than $100k. (All bonus payments are by gift card. See terms.)

Private student loans don’t have nearly as many options as federal student loans, but the one big benefit is that you can refinance over and over again if you find a better offer. I recommend people look every 6-12 months to see what sort of rates they will get from lenders. If you get a better interest rate you can ditch your current lender for the better loan.

 
Federal Student Loans

Federal student loans come with a lot of benefits, which is why I start with a word of caution on refinancing federal student loans. Once you refinance a federal student loan your federal loan no longer exists; you now have a private student loan. That means you no longer have access to benefits like income-driven repayment or opportunities for loan forgiveness, so take a pause before refinancing federal loans (private loans already don’t have these benefits, so feel free to refinance). Especially if you are struggling financially you shouldn’t consider refinancing your federal student loans.

With that in mind, here are a couple things you should look into:

• Income-driven repayment plans – There are four different income-driven repayment plans, each one with slightly different features. What they do have in common is they max out your minimum required monthly payment at 10-20% of your adjusted gross income (AGI), which can be found on your tax return. You can read more about the income-driven repayment plans here.

• Student loan forgiveness – There are two primary forms of student loan forgiveness: income-driven loan forgiveness and Public Service Loan Forgiveness (PSLF). Income-driven repayment works like this: make 20-25 years of payments on an income-driven repayment plan and your remaining loans (and accrued interest) will be discharged. You will have to pay taxes on the amount forgiven. For example if you had $100,000 forgiven, you’ll have to pay taxes on that amount as if it was income you earned.
   
  PSLF is the other major type of loan forgiveness. It’s received bad press, but fears about the program are overblown and more and more people will be granted PSLF over time. PSLF is the best type of loan forgiveness because it only requires 120 qualified monthly payments and you aren’t taxed on the amount that you are forgiven. It can be a difficult program to navigate, but for some borrowers it can literally result in a six-figure swing in their net worth. You can read more about PSLF here. I also wrote a post that shared tips for maximizing PSLF.

By strategically taking advantage of things like income-driven repayment, you can increase cash flow which allows you focus on goals like building a healthy emergency fund. As I mentioned earlier, it’s a lot easier to leave a job you hate when you cash in the bank than if you have no savings.

What Does the Rest of your Finances Look Like?

 
Your student loans are important to address, but it’s only a piece of your finances. There are other things to think about such as:

• Credit Card Debt – If you have credit card debt it should be prioritized over your student loan debt and you should be even more motivated to move onto an income-driven repayment plan and/or work towards getting your private student loans down to a more reasonable monthly payment. If your credit is good enough you may be able to refinance your credit card debt into a personal loan with a lower interest rate. Another option is a 0% APR transfer card, where you won’t be charged interest for the first 12-18 months. If you do take this approach you have to be sure you are 100% committed to paying down the debt and not simply letting it sit and/or increasing your credit car debt, which is common.

• Cash Flow – To track my income and expenses, I use Tiller, an automated tool that pulls all your credit card and bank information into one spreadsheet. I use it in tandem with an automated budget spreadsheet in Excel to keep tabs on how much we are spending on things like restaurants, auto insurance, and other spend categories. Ultimately I am able to see whether or not we have positive cash flow.
   
  Key to understanding your cash flow is knowing how much you spend, and on what. Use this as an opportunity to ask yourself whether you are spending your money on things you care about? If you value your daily Starbucks, that’s something that you should keep in your budget. If you don’t care about your car then you should find the best value (I fall in this boat and have been very happy with my inexpensive but reliable Kia Spectra). Only you can decide what you should and shouldn’t spend money on, but take this as an opportunity to prioritize your spending.
   
  One note on student loans specifically: moving your federal student loans onto an income-driven repayment plan can have huge positive implications for your cash flow. For example, a therapist with an AGI of $40k and $100k+ of student loans could see their required monthly payment go from more than $900 on a standard ten-year repayment plan to less than $150 a month on an income-driven repayment plan. That’s a lot of extra cash each month that can be used to transform the stability of your financial life.

• Credit Score – We talked a lot about refinancing, and nothing impacts your ability to refinance at the best interest rates more than your credit score. Virtually every credit card provides you access to a free credit score.
   
  If your credit score isn’t as high as you’d like (650 to 699 is good, 700 to 749 is very good, and 750 and up is excellent), don’t worry. There are plenty of practical things you can do to start improving your score. Here’s a post about a fellow blogger who improved their credit score 150+ points in just 8 months.

 
You don’t have to wait until your student loans are gone to start living a life you love.

I repeat: You don’t have to wait until your student loans are gone to start living a life you love!

Some borrowers will benefit from loan forgiveness, and for them paying off their loans either won’t be possible (think of a social worker making $40k a year with $160k student loan balance) or would cost them tens of thousands that could have been forgiven. Moving from a hopeless (and to be frank, bad) student loan repayment strategy to one that makes sense can be life-changing. For some that will be a strategy that involves pursuing student loan forgiveness, for others it will look different.

For various reasons, federal student loan debt is the best type of debt because of the numerous options it gives you for income-driven repayment and loan forgiveness. Private student loan debt is tougher, but there are still options for managing it through refinancing to a lower interest rate and/or extending the payment terms.

If you’re feeling stuck, don’t avoid your personal finances. I have people who are very close to me who didn’t read my blog for years because they were afraid to confront their finances. The sooner you do, the sooner you can take control of your money and your financial life.

Don’t let student loans keep you in a job you hate. You don’t have to be miserable because of your student loans.
 
 

I thrive when I have actionable items that I can work on.

This directly translates to money and finance. Making money, saving money, and managing money are things that everyone has to deal with.

But dealing with money can be daunting if it’s not broken down into actionable tasks. That’s why I decided to write a post about 40+ ways to improve your finances this month.

There’s many things you can do over the next year, two years, or ten years to get in a better spot financially. But what about this month?

My goal with this post was to provide a list of things that you can take action on within the next few weeks to improve your finances. Some will take longer than others, but all can at least be started this month.

1) Start Tracking Your Income & Expenses

 
Tracking your income and expenses can have a huge impact on your finances. When my wife and I started to track our income and expenses years ago, we immediately felt freedom by having a record of exactly how much we were making and how much we were spending. The sooner you start, the sooner you can make adjustments to how you spend and manage your money.

After years of doing a manual budget spreadsheet, I finally created an automated approach. You can grab my free automated budget spreadsheet here. It uses Tiller which is an awesome new tool that automatically formats all your data into one uniform format. I highly recommend it.

2) Start Tracking Your Net Worth

 
It was long after I started tracking my spending that I started to track my net worth. To be honest it can be a bit deflating for millennials to track their net worth, especially if they are buried in student loans (and other debt).

Regardless of how you will feel about your net worth, it can beneficial to track it. An easy way to track your net worth (automatically) is Personal Capital. Personal Capital is a free service use myself. Once you link all your accounts it’s super easy to go in monthly, quarterly, or annually to check your progress.

3) Review Your Debt

 
So you know what your net worth is because you set up a free account on Personal Capital, but I would encourage you to not stop there. Instead, dig deeper into your debt. Not all debt is equal. There’s a big difference between credit card debt with a 20% interest rate and a mortgage with a 3% interest rate.

My wife and I keep tabs on our debt using a simple spreadsheet. We list out what company owns the debt, what it was for, what the interest rate is, and what the outstanding balance is. We pay off the higher-interest debt first and some debt we put nothing extra towards (like our mortgage with a 3.15% interest rate).

I put together a free debt payoff spreadsheet that will help you estimate how long it will take you to pay off your debt based on the size of your payment each month. If you have student loans, I created a free student loan spreadsheet with a ton of tools and resources within it, which goes hand-in-hand with my book Student Loan Solution: 5 Steps to Take Control of Your Student Loans and Financial Life.

4) Make a Debt Repayment Plan

 
A debt repayment plan essentially maps out exactly how you plan on paying off your debt. It can include details like which debt you will pay off first, changes you will make in spending to pay off debt faster, or how you will increase your income to pay off debt faster (which is the basis of my book Hustle Away Debt).

While making a plan, think of actionable things that you can do today to lower your overall debt load. For example, should you consider a different repayment plan for your student loans? If you are in credit card debt, have you looked into moving them onto a 0% transfer card?

Once you have a plan created read this post to increase your chances of sticking to your plan.

5) Start Using a Calendar

 
The saying “time is money” is true: your income is constrained by your time. The biggest issue people run into when starting side hustles is the lack of time and inability to fit it into their schedule.

I use a calendar religiously and it’s really helped me juggle my full-time job, my side hustles (blogging, speaking, creating products), and everything else in my life. I use Google Calendar, but I encourage people to use whatever works for them. You may find my time tracking spreadsheet useful.

Having your time under control – and spending your time on the things that matter to you – can only help your finances.

6) Start Contributing to an HSA

 
If you have a Health Savings Account, or HSA for short, and aren’t contributing to it, you should start ASAP. HSAs are like IRAs, but on steroids (no pun intended) because you can use them both as an IRA in retirement or you can use them to pay medical bills, tax free, until the day you die.

I’ve talked to countless millennials who have HSAs through their employer but who are not contributing. Some of them say they simply do not have many medical expenses so there is no reason to. To that I say – that’s the best time to build up your medical emergency fund! Plus you can invest your funds and withdraw them in retirement, similar to a standard IRA (but better). I have a stretch goal of eventually having a $100k+ HSA.

7) Start Tracking Your Donations

 
When it comes to taxes you really need to keep good documentation. Some of this is done automatically through an employer or company you have a student loan through, but some of it falls on your plate.

Take donations as an example. Many people donate both money and physical goods, but how many actually keep detailed records? If you don’t have a record of your donations, you won’t be able to write them off.

Next time you go to goodwill or donate to a cause, keep detailed records of your donation. For physical goods, having details of exactly what you donated will help you calculate your write-off come tax time (and help if you ever are audited). If you really want to track donations properly, take a picture of the physical goods you donate. Make sure you get a tax receipt, both when you donate physical goods or when you make monetary donations.

Changes to the tax code last year make this less important as a majority of people take the standard deduction, but if there is potentially you will itemize your deductions its important to have this documentation.

8) Review Retirement Options

 
If you don’t already contribute to a retirement account, it’s time to start. And even if you do already contribute to a retirement account, it never hurts to evaluate how much you are contributing and whether you can/should increase the amount.

If you have the option, a 401k is a good place to start saving for retirement. Make sure you check and see whether your employer matches your contributions up to a certain percentage. If they do, make sure that you contribute at least enough to max out the employer match – anything less is leaving money on the table.

For those who do not have retirement account options through work, consider opening an IRA. A regular IRA gives you tax protection today but taxes you when you withdraw funds. A Roth IRA is after-tax money and does not protect you from taxes today, but you will not be taxed when you withdraw funds in retirement. Both have their advantages; the important thing to do is get started!

Don’t just stop at contributing – make sure you are putting your money in the best funds. Here is a free spreadsheet that will help you analyze your retirement account options.

9) Review Your Fees

 
Do you know how much you are losing in fees in your retirement account? Taking it a step further, do you know if you are paying the lowest possible fees on your retirement account?

Most people don’t think about management fees when it comes to their investments. After all, the difference between 0.5% or 2% seems minimal. The difference can actually be huge: 33% difference in savings after 30 years!

Again, using the free spreadsheet to analyze your retirement account options can help you avoid putting (and keeping) money in funds that gouge you on the fee front.

10) Get Life Insurance

 
If you are married and/or have children, you need life insurance. This is especially true if you have debt or if your spouse relies on your income.

Life insurance is an easy thing to put off. I put it off for more than 2 years – it always seemed to fall at the bottom of my to-do list. Finally I went through Policy Genius to get quotes online and see what my options are.

11) Write down your goals and get motivated

 
What are you working towards this month? This year? Five years from now?

Taking 10-30 minutes and setting goals can have a huge impact on your finances long-term. Once you have them written down you are much more likely to follow through with them.

Need ideas? Here’s 100 goals to focus on for a successful year.

Some goals – like paying off $100k of debt – are daunting. Breaking your goals down into achievable, actionable sub-goals can be a good approach. For example I made a goal out of college to make $1,000+ each month in side hustle income to offset my wife and my student loans. From there I broke it down even further into things I could do (start a blog, Excel spreadsheet consulting, freelance write) to make extra money each month.

12) Review Salary Data & Consider a Job Change

 
In my book Hustle Away Debt one of the things on the “Pre-Hustle Checklist” is see if there is an opportunity to make more at your 9-5. After all, in many jobs you will be working (close) to the same hours regardless of what level you sit at. Making an extra $10,000 at your day job may be a whole lot easier than making an extra $10,000 at a side hustle.

Two things I recommend everyone consider doing on a regular basis is review salary data on sites like Glassdoor and PayScale, and look at job openings at the next level. Salary data may reveal that you are getting paid lower than you should be, or that other employers pay a lot more than your company for similar positions (here’s how you can find and compare salary data). Looking at job openings helps you recognize the skills and experience hiring managers are looking for at the next level. You can develop those skills now so you are prepared when you are applying for those jobs.

13) Create or Update your LinkedIn Profile

 
Love it or hate it, LinkedIn can help you get job opportunities that otherwise wouldn’t come your way. Many recruiters spend countless hours looking at LinkedIn profiles. Not having a presence on LinkedIn could be costing you.

Even if you aren’t looking for a job, you never know what the future holds. There may be a shakeup in management and you could get caught in the cross-hairs. Even if you retain your job, you may not be fond of who you are reporting to or what your new duties are. Building connections on LinkedIn, particularly recruiters, could benefit you down the road. To get you started, here’s 15 in-demand skills that improve your LinkedIn.

14) Update your Resume

 
We’ve all been there. There is a job opportunity that comes up, and you need to submit a resume. But you haven’t updated it in years. You may even struggle to find an old copy of it on your computer!

Regularly updating your resume – every six months to a year – can make your life a lot easier. Beyond that it will show you gaps or areas for improvement. Is your resume unimpressive in the management/leadership area? How can you improve that over the next year?

While updating your resume may not directly improve your finances this month, it’s hard to argue that it won’t improve your finances long-term.

15) Meet with a Recruiter

 
If you’ve been at the same company for 5+ years, you likely would benefit from talking to a recruiter. Whether it’s a recruiter at another company you are interested in or a recruiter from a recruiting company like Robert Half, they typically have a lot of insight into what hiring managers are looking for in new hires.

Even if you don’t have plans of leaving your employer it can be beneficial to have another contact and hear what other employers compensation and career track is for your area of expertise. At the very least it gets your resume in front of another person – and someone who works directly with hiring managers, at that.

16) Attend a Networking Event – or Network 1:1

 
Networking events aren’t for everyone, but they can lead to good connections. Another option is to find people who work for companies you are interested in and setting up 1:1s with them. It may take some extra effort, but most people are open to meeting with others who work in their same field.

Finally something we can all do is keep up our current network. Think about a handful of people you’d like to stay connected with long-term, and schedule some time to get coffee with them and catch up. You never know what opportunities they may be aware of, or how you can help each other out down the road.

17) Start a Side Hustle

 
For those who are unfamiliar, side hustles are essentially any way to make money in addition to your 9-5 income. It can be as simple as working a retail job on the weekend, or as complex as creating a product that you have manufactured in China and sold on Amazon. Ultimately, though, side hustles are meant to help you increase your income so you have more money to reach your financial goals faster.

As student loans become a bigger burden and the overall debt people hold becomes higher, a 9-5 sometimes just won’t cut it. A side hustle like starting a blog, freelance writing, or selling on Etsy has the potential to give you the income you need to make your goals a reality. The important thing to do is to get started!

Here is a huge post I put together that lists 50+ online and at-home side hustles. You may also be interested in checking out this list of 15 hobbies and interests that can be profitable side hustles, or this post on how to start a blog side hustle.

18) Use Cash Back Apps

 
If you don’t feel like you have time to start a full-blown side hustle, there are a number of simple, easy, and non-consuming ways to make a little bit of extra money online each month. If you stick with them long-term you should make a small amount of extra money for very little effort – all from the comfort of your home.

One of the ways to do this is through cash back apps. There are a number of them, but a few I keep going back to are Ebates, swagbucks, and BeFrugal.

Here’s a list of 10+ cash back apps to check out. If you use the links in that post to sign up you can get $40+ in sign-up bonuses for the first five on the list.

19) Rent part of your house

 
I get it: it’s nice to not have roommates or renters. But honestly if you are single this can be a really great way to improve your finances. If you have a big enough house with enough extra bedrooms your rental income may even be high enough to cover the entire mortgage!

Because my wife and I are always looking for ways to increase and diversify our income, my wife and I rent out part of our basement. It’s laid out as a studio apartment and the rental income has been great the past five-plus years.

Of course renting out part of your house or getting a roommate may not be an option for you, but if you do have the space it can be a great way to increase your income and cut your expenses at the same time.

20) Work on a skill

 
It’s no question that employers are looking for skilled workers. So what is one way to make yourself more in-demand and, potentially, paid more? Learn new skills and continue to improve the ones you already have.

One of my favorite benefits of side hustles are that they offer you the opportunity to improve your skills. For example I have done some Excel Spreadsheet freelancing, and it not only provided me with extra income but also improved skills that I use at my 9-5. A win-win!

If one of your goals is to focus on self-improvement this year, working on your skill set is a great way to help your finances. For example, many programmers are primarily self-taught. They took the initiative to learn how to code and that has allowed them to land jobs in a very lucrative career path. With all the courses and free content available online these days you can learn and improve virtually any skill you desire.

Here are 15 skills that will help you make more money and 10 skills that can help you make money online.

And a final note that this doesn’t need to have anything to do with your 9-5. It could be a way to make more money through a side income, but it doesn’t have to be. Sometimes learning a new skill won’t directly impact your finances, but it can make your life more enjoyable. I’m learning French but I don’t foresee it having any monetary return.

21) Sell your stuff

 
I am a big fan of Gary Vaynerchuk, the entrepreneur and marketing guru. One thing he talked about recently was how some people will say “if I just an extra $500, $1,000, or $2,000 dollars I could do (fill in blank).” His suggestion was to go through everything you own and make a pile of things you can sell.

This is really great advice for someone who wants some extra money but doesn’t want to start a side hustle. You can sell your stuff on Craigslist, at a garage sale, or on eBay. You can even take it a step further and go to garage sales and flip things for a profit (one of my neighbors did this full-time with furniture).

So if you want to improve your finances this month, consider spending a weekend going through everything and selling it online or by hosting a garage sale. It can be a good way to practice minimalism as well as make some extra money.To help you start brainstorming, here’s 15 household items you could sell today for extra money.

22) Use Credit Card Rewards

 
When used appropriately, credit cards can provide you with cash back and travel rewards that will save you money. One credit card (actually the card I recommend as a first credit card) has provided my wife and I with cash back that we turned into Starbucks and Chipotle gift cards. I am not exaggerating when I say we’ve saved over $1,000 over the years.

Cash back rewards are good, but I’ve also saved a lot of money on travel as well. Here’s a post I wrote about saving money on flights and other expenses using an airline credit card and a general way to save money on travel using credit cards.

23) Set Up Automatic Savings

 
Building an emergency fund can be daunting, especially if you are in a lot of debt and want to make payments towards your debt as well. Nevertheless, having an emergency fund is essential, especially if you are in debt, because it helps you avoid having to go into debt if an emergency arises.

There’s a couple of ways to build up an emergency fund that take the pain and guesswork out of the equation. My personal recommendation is that anyone looking to build up their savings should set up automatic fund transfers from their checking to savings. This can be set up to align with when your paycheck hits your checking account. With money moving automatically you have less of a “choice” to save and are, in a way, forced to continue to save.

I am a huge fan of CIT Bank’s high yield savings account, and wish I had made the switch sooner. It’s a great place to put your emergency fund, or to build one. Here’s a post I wrote about building an emergency fund $100 at a time.

24) Review Your Spending

 
I suggested recording all your income and expenses, either in a spreadsheet, app, or whatever works for you. Once you have that data it’s time to analyze and adjust your spending.

Perhaps you didn’t realize you were spending so much money eating out each month. Or maybe it’s another spending area – like home improvement projects – that are costing you more than you’d like each month.

Once you recognize areas that you would like to change, the next step is to actually make those changes. Be conscious of where you are spending your money and consider rewarding yourself for successful adjusting your spending habits.

25) Cancel Subscriptions

 
With all the subscription options available today, it can be easy to forget about just how many subscriptions you have – and whether you are even actively using them.

Consider taking some time this month (put it on your calendar) to review all the things you are subscribed to. From magazines to subscription boxes, you may be surprised just how much you pay in subscription fees. (Here’s how I get magazine subscriptions for free).

Cable is always the big one, and for good reason: many people pay $100+ every single month for cable and internet. With more and more lower-cost entertainment options it may be time to evaluate whether you really need cable, or if you’d be better off cutting the cord and using a lower-cost option for your entertainment needs. I was happy to cut cable not only for the savings, but also to not waste my time playing the cable company’s games anymore!

26) Coupon

 
My wife and I have saved thousands the past few years using coupons on things we would have bought anyway. If you are struggling to save money I would encourage you to consider spending an hour or two a week couponing. The savings may be worth it.

Retailers and brands face fierce competition, and coupons are one way they can differentiate themselves from their rivals. Even when my wife and I go out to eat or get ice cream, we almost always have some sort of coupon to bring down the cost.

There are many sites like Target.com, Redplum.com, and Coupons.com that provide printable coupons. The fact they are online makes it easy to sort and filter only on the products you care about. There are also apps like Ibotta that offer additional savings (without having to physically print anything).

27) Plan Your Meals

 
Meal-planning is another way my wife and I save time and money. If you don’t already plan your meals, I would recommend you start for the benefits you’ll gain both in only buying food you will actually eat and not having to think “what should I have tonight?”

My wife and I plan two weeks at a time, but you can do just one week or take it further and plan a full month. Remember, this doesn’t mean you can’t change your mind later on. Being flexible is key, but the fact that you took the time to plan out your meals makes you more likely to stick to the plan. Your wallet will thank you.

28) Make a Grocery List

 
Along with meal-planning and couponing, making a grocery list is the third way you can cut down on the amount you spend on groceries and eating out at restaurants.

A good way to integrate all three is by first planning out what meals you want to have. Next, look for coupons that line up with those meals. Add anything else to your list (i.e. paper towels, toiletries, other household goods) and look for coupons for those as well. Finally make your grocery list.

Following this strategy will help you only buy the things you need and not purchase things because there are coupons for them. You will also cut down on the number of items you add to your cart simply because they caught your eye as you were going through the grocery store.

29) Brew Coffee at Home

 
I know a number of people who get Starbucks or Caribou every single day. While I’m not opposed to getting coffee from Starbucks every once in a while, I try to limit it as much as possible.

If you’re looking to save money and you find yourself going through the Starbucks drive-through frequently, brewing coffee at home can be a big win from a financial perspective. It also could save you time as it’s relatively quick and easy to brew coffee at home versus stopping by Starbucks in the morning.

30) Bring your Lunch to Work

 
When I was an intern I made a really dumb financial decision: I bought a salad at work every day. I’m not talking cheap salads. I’m talking $5-$8 salads. To put this in perspective I could get $2 or $3 bags of salad at the store and make 2 big salads per bag.

I certainly can understand the draw of purchasing your lunch at work. It’s so easy! Hauling tupperware to and from work each day isn’t fun. But the money you can save is real and can have an impact when we talk in terms of months or years.

Another reason my wife and I plan our meals is because we try to plan dinners that will have leftovers for lunch the next day. Lo mein, pasta, pizza, stir fry, salad…there’s a ton of options. Bringing our lunches to work has saved us thousands the past few years, and I’d recommend you give it a try if you are looking to improve your finances this month.

31) Put Off a Purchase (Big or Small!)

 
A piece of financial advice I like to use is “run your personal finances like a business.” With my six years of corporate finance and accounting experience I have seen many great parallels.

One of these parallels is this: delaying spend can be a big financial win. If a business is trying to hit financial targets for a quarter or a year one of the things that is almost always considered is delaying spend. And most times the result is better financial performance.

In the same way you can delay spend with your personal finances, with good results. It isn’t always the easiest thing to do, but putting off big purchases can typically result in better finances. Whether you are delaying the purchase of your next car, that bathroom/kitchen/basement renovation you’ve been wanting to do, or new shoes, delaying these purchases typically doesn’t greatly hurt your quality of life and can sometimes greatly improve your finances. Here is one strategy that immediately limits spending.

32) Go On a No-Spend Challenge

 
Have you considered going on a no-spend challenge? This may sound like an extreme measure, but it can work similar to the “delayed” spending tactic. If you force yourself to not spend money in a given week, month, etc., you by default must find a way to get by with what you have.

A lot of people do this with food. If you feel like your cupboards, fridge, and freezer are packed, but you constantly have food going bad before you can eat it, a no-spend challenge can force you to really look at what food you have on hand and eat that rather than purchase more food. Here’s why you should consider a no-spend challenge

33) Create a Student Loan Repayment Strategy

 
With over $1.4 trillion in outstanding student loan debt in the United States, student loans are a big problem. It doesn’t help that repayment plans and opportunities for loan forgiveness are complicated to navigate.

There are some authors and speakers in the personal finance space who don’t even mention income-driven repayment, or opportunities for loan forgiveness. This is a huge disservice to people who could greatly benefit from these. In certain situations, Public Service Loan Forgiveness can make a massive difference in someone’s finances.

If you don’t have a student loan repayment strategy, consider purchasing (or getting from your library) my book Student Loan Solution: 5 Steps to Take Control of Your Student Loans and Financial Life.

34) Go the DIY Route

 
I have a friend who has Summers off because he is a teacher. He tries to do one bigger home project each Summer. It’s the ideal time, as he has plenty of time to go through the project slowly and go the DIY route in virtually every aspect of the project.

A couple years ago he renovated their bathroom. He took everything down to the studs and even redid the wiring with the help of one of his relatives. The project ended up great and saved him anywhere from $5k – $25k.

While we may not all be able to go to the DIY route, it can be a good option for saving money. If you have extra time and aren’t pursuing other side hustles with your spare time, you can potentially save thousands or tens of thousands of dollars that otherwise would go to contractors. Consider the DIY route for your next project and see if you have the time and capacity to make it happen.

35) Read a Book about Personal Finance

 
I think of financial literacy as a lifetime learning program: there’s always more to learn. There are so many books out there about personal finance. Literally thousands upon thousands! So how do yo pick one? Here’s my list of personal finance books for millennials.

36) Take a Personal Finance Course

 
Courses are becoming more and more popular. There are courses on virtually every financial topic, like investing and budgeting, but there are also general personal finance courses. If I had to recommend just one it would be Tara Falcone’s MONEY course, which has over 75 modules and covers a wide variety of personal finance topics. You can learn more about her course here.

37) Learn about Tax Strategies

 
We’ve already mentioned HSA, retirement accounts, and recording all your donations, but typically most people don’t think about taxes as a way to save money. In reality if you are strategic about the opportunities given to you (i.e. 401k, HSA, etc.) that can save you money on taxes, you could greatly lower your tax bill at year-end.

A lot of tax savings has to be done over the course of a year. If you take some time this month to look into ways to lower your taxes, you may be surprised at how little you are actively doing to lower your tax bill. With our complicated tax code it’s natural to not want to deal with it or think about it except at year end.

I encourage you to take some time to analyze your tax strategy this month. And if you don’t have a “tax strategy”, consider creating one. Here’s a list of some tax-advantaged accounts.

38) Subscribe to Young Adult Money’s weekly newsletter

 
Can you blame for including a plug here :) I’ve started to put more time and energy towards our newsletter, and it can give you a quick recap of what posts were new the past week as well as other news and links to popular posts.

We are really committed at Young Adult Money to helping you make more, save more, and live better. Who doesn’t want those three things? Fill out the form below to join our community:

39) Work Out on a Regular Basis

 
The statistics don’t lie: Americans aren’t the healthiest. While there are two sides to the health equation, both eating healthier and getting more exercise, I wanted to specifically call out working out on a regular basis as a way to improve your finances.

I won’t bore you with countless stats on how exercising makes you healthier and at lower risk for various diseases. We’ve all heard this. But one thing I’ve noticed about exercise is that it really is about getting in the habit of making time for it. Once you are in the habit of going to the gym or exercising outside a few times a week, it does get easier.

There are some health conditions that simply can’t be prevented by exercise. I had two sinus surgeries and it had little to do with how many days I went to the gym. With that being said, if you can improve your health in general and in turn save money, it’s a good way to kill two birds with one stone.

40) Minimize Stress

 
My wife will probably read this tip and say “listen to your own advice!” I’m not the best when it comes to handling stress, but I do recognize that when I am calm and feel like I have control over a situation I generally handle situations better. This obviously has an impact on my job performance, side hustle performance, and ability to make wise financial decisions.

It’s incredible the amount of stress people are under from demands at work, packed schedules, lack of sleep, and anxiety in general. Some people have huge expectations put on them by others, while some put the expectations on themselves. It’s important to identify the source of stress and decide what you can do about it.

Most people, especially those in their 20s and 30s, have some sort of financial stress. For some it can become crushing. That’s why I am so passionate about financial literacy and proposing side hustles as a way to be proactive about taming debt and getting in a better spot financially.

Regardless of what your source of stress is, take some time this month to acknowledge the source or your stress. List out exactly what you can do to deal with it better and/or minimize the underlying issue.

 
 
What will you do this month to improve your finances?
 
 

There are many reasons why people choose to change careers. Maybe you’re looking for a new challenge, more career growth, better pay, or fewer hours, to name a few.

Regardless of your reason, a career change is a big decision. Here are 8 things you should do if you’re considering a major career change.

1) Understand Your Why

 
Before you dive right in with a job search, it’s important to understand why you are looking to switch careers. What do you hope a new career has that your current one doesn’t?

While it may be tempting to believe the grass is definitely greener in a new career, that might not be the case. So, why are you truly considering a new career?

Here are some reasons you may be looking to switch careers:

• You want more room for growth

• You are planning on moving to a different geographic location and need to pivot

• You want to work in a field with more pay

• You want a consistent paycheck versus commission

• You want to work more regular hours

• You need something with more flexibility

The reason you want to switch careers doesn’t matter to anyone but you. Switching careers is challenging, so clinging to your “why” is the motivation you will need to carry you through.

2) Take Stock of Your Skillset

 
Next, take inventory of your current skills and experiences. How could they transfer to a new career?

Chances are, not every skill you currently use will be necessary in a new career. But many skills, such as project planning, communication, public speaking, and more, are in-demand, no matter what career you choose.

This is also a good time to consider any additional credentials you may need to get you where you want to be. Don’t’ forget to evaluate the time and money required to obtain such a credential.

3) Evaluate Potential Barriers

 
Career pivots are common, but they aren’t always the most obvious things to potential employers. Chances are, no one is going to get it at first, so it’s up to you to connect the dots in order to land your first gig in your new career.

In order to do this, think about what questions a future employer will have about your experience. What won’t make sense to them? How can you bridge the gap for them?

Most importantly, barriers will happen. It’s inevitable. So don’t let yourself get down when you encounter one. You can anticipate some resistance to your career change, and plan accordingly ahead of time.

4) Consider the Pay and Lifestyle

 
When envisioning a new career, it’s easy to view the future with rose colored glasses. You can see yourself working your dream job, with dream hours and pay. WHile it’s certainly not impossible to find all three of these characteristics in a new career, oftentimes, one comes at the expense of another.

For instance, a corporate attorney may earn a hefty paycheck, but the billable hours may be killer. On the other hand, a regular 9-5 may not pay as well, but the hours are much more palatable.

It is totally possible to find a career with balance, so make sure you are holding out for the right field that works for you and your lifestyle.

5) Get First or Second Hand Experience

 
Next step – get experience in your new career of choice.

Ideally, you can set it up to shadow someone in your new career. However, if you are currently working crazy hours, this might not be realistic. If that’s the case, then second-hand experience is certainly better than nothing.

To get second-hand job experience, ask to meet with professionals in your new career. Ask them questions about what a day-in-the-life is like for them at work. You can even ask if they have any projects they’d be willing to let you volunteer for.

Experience is vital to making sure you love your new career before you take the leap. If you can get experience of any sort, you’ll find you will be much more confident while executing your career pivot.

6) Research Companies

 
Sure, a job in a new career might sound cool, but before you switch, it’s vital to know what type of companies you could expect to work for.

Are there job openings in your field in your area? Are they companies you’d be excited to work with in the future? Do they pay well? Do they have solid reviews from other employees?

Doing your research before you switch careers will ensure you have job prospects in the future. After all, what good is switching careers if you can’t find a job in that field?

7) Consider the Timing

 
Is now a good time to switch careers? Do you have the time and energy to dedicate to the learning curve of navigating a new career?

Changing careers is a big commitment, and will require more of your energy than you may realize at first. Make sure the timing works for you and your family so you can ensure their full support behind you.

8) Start a Side Hustle

 
Lastly, if you’re not quite ready to dive head first into a new career, consider starting a side hustle.

A side hustle is a great way to learn new skills firsthand, and try out a job before you commit to making the switch full-time. For example, if you’ve considered switching to the field of teaching, you can tutor on the side to get a feel for it before you leave your day job.

And beside the experience, side hustling can give you entrance into a vast network of professionals in your field. Who knows? You may just meet someone who can open up the door you need to enter a new career!

 
Related:
 

• How to Find a New Job During COVID

• I Hate My Job But I Have Student Loans – What Should I Do?

• 10+ Productive Things to Do If You Are Bored at your Corporate Job

Many people take a sabbatical at some point in their career for various reasons. Maybe you moved, went back to school, job loss, started a family, or just needed a break.

Whatever the reason, having a gap on your resume doesn’t mean you can’t find a job and reenter the workforce.

Here’s everything you need to know about how to overcome a gap in your work experience.

Be Honest and Vulnerable

 
They say honesty is the best policy, and it certainly applies here. Be prepared to speak to why you had a gap. Depending on your reason for taking a break in your career, explaining the gap to a potential employer may be uncomfortable.

You can overcome this discomfort by being totally honest and preparing for the question ahead of time. Chances are, if you have a gap on your resume, someone will ask about it so don’t let it come as a surprise.

In fact, you may be surprised at how a hiring manager reacts to your blunt honesty about your situation. It’s a great opportunity to demonstrate your character in an interview, so use it to your advantage.

Some examples you can use in an interview:

• I took some time off to stay home with the kids and am ready to reenter the workforce with my full energy

• I was laid off from my last role, and toko the opportunity to reevaluate what I wanted in a new role

• I am proud of the quality of work in my last role, but I realized it wasn’t the work I wanted to be doing long-term. I took time off to think about my next career move.

Your cover letter is also a great place to explain the gap in your experience.

And remember – resume gaps do not define you, and they aren’t’ necessarily bad. Whatever your reason for taking a break in your career, own it!

Fill the Gap

 
If you don’t like your reasoning for the gap on your resume, you can work to fill it.

How did you use your time off? Did you volunteer? Care for someone? Start a business?

You can add these experiences to your resume, just like you would any other job. While it’s certain you’ll still be asked about it, it’s a good way to make your resume look cohesive and give you something to talk about during an interview.

Remove Short-Lived Gigs

 
A gap on your resume isn’t necessarily a red flag, but a gap combined with a bunch of short-lived jobs is.

If you have a choppy resume, hiring managers can’t help but wonder if there is something you aren’t’ telling them. Even though you very well could have left each role for a good reason, it’s going to be challenging to get a foot in the door with a lot of resume breaks.

So, if you have any roles you were at for less than a year, consider removing them from your resume. While some of the skills you learned on the job may be valuable, it can be more distracting than anything.

Start a Side Business

 
If you have a side business, you can easily bridge the gap on your resume.

Starting a business is the perfect excuse for a gap on your resume. Better yet, if you find yourself taking a break in your career because you feel burnout, starting a business might be the refresh you need.

There are thousands of side businesses you can start, and many of them can be started from your own laptop. As an additional plus, having a side business means you always have something to fill a gap on your resume, so you never have to worry about it again in the future.

Keep Your Skills Up to Date

 
Lastly, if you are currently taking a gap or you plan to, it’s essential to keep your skills up-to-date.

Stay abreast of any trends and changes in your industry, and consider taking courses in your free time to ensure you aren’t getting rusty. That way, you can rest assured no hiring manager will question if your skills are still relevant.

 
Related:
 

• How to Find a New Job During COVID

• I Hate My Job But I Have Student Loans – What Should I Do?

Only payments made after October 1st, 2017, are eligible. Since 120 payments are required for PSLF, the earliest anyone could have possibly been eligible was late 2018.

Now that we are past that date we are seeing a small number of borrowers receive student loan forgiveness through the program. But we’ve seen (many) more get rejected for various reasons.

Many who applied had loans that weren’t eligible, were on a repayment plan that wasn’t eligible, or had other issues.

Take these examples as a cautionary tale: when you are pursuing Public Service Loan Forgiveness make sure you are vigilant about it. That means fully understanding the requirements and documenting everything. When you’ve made the required 120 payments and submit your request for PSLF, you should be confident that you have done everything required.

Borrowers who are pursuing PSLF have a lot riding on it. There are few opportunities where you can have potentially tens of thousands or even hundreds of thousands of dollars worth of loans discharged, tax free.

Getting PSLF alone is a big win, but it also makes sense to maximize it. PSLF provides borrowers with incentives to shove money into tax-advantaged accounts. This is one way you maximize Public Service Loan Forgiveness.

But before we get into the strategies that maximize PSLF, let’s make sure you have a good base of information. Read these three articles first:

• The Ultimate Student Loan Spreadsheet to Track Your Student Loans – Download the free spreadsheet in this post and populate all your student loan information.

• Student Loan Income-Driven Repayment Explained – Read this overview of income-driven repayment plans. If you are pursuing PSLF you will want to be on one of these plans.

• How Public Service Loan Forgiveness (PSLF) Works – This post goes over the requirements of PSLF, which is extremely important considering how many borrowers have applied for PSLF who had ineligible loans, didn’t work for an eligible employer, or were on the wrong repayment plan. These are mistakes you can’t afford to make.

 
I have to reiterate one more time how important it is to understand your loans, the requirements of PSLF, and what you need to do to successfully achieve PSLF. My book Student Loan Solution has everything laid out in detail, as well as how to improve your broader financial life while repaying student loans.

Let’s get to what you’ve been waiting for: how to maximize PSLF.

First, a few “extra” things you can do to ensure you are well on your way to PSLF:

• Resubmit your Employment Certification Form every six months
   
  One issue people run into with PSLF is not submitting the Employment Certification Form often enough. You technically aren’t required to submit this regularly, but it makes sense to. FedLoan, the loan servicer that borrowers are moved to if they are pursuing PSLF, doesn’t updated your eligible payments until you’ve submitted your Employment Certification Form. The reason why is because they have no idea whether or not you’ve left your employer since you last submitted the form. It costs nothing to submit the form, so doing this every six months or, at minimum every year, makes a lot of sense.

• Calculate your Payments
   
  While you should be able to trust FedLoan to accurately calculate your required payment, it makes sense to double-check it because there have been reports that FedLoan has calculated required payments incorrectly. You an use the free student loan spreadsheet to plug in your loan balance and AGI. In turn it will calculate your discretionary income and what your payment amount should be under each repayment plan.

Maximizing Public Service Loan Forgiveness

 
Maximizing Public Service Loan Forgiveness comes down to your Adjusted Gross Income, or AGI, which is essentially a number on your tax return. Think of someone with a salary of $70,000. Their AGI will be lower than $70,000 because AGI factors out things like contributions to a standard IRA, 401(k), or other tax deferred accounts.

The beauty of PSLF is it rewards you for lowering your AGI, because for each dollar you lower your AGI is $1 that isn’t factored into your income-driven repayment, and is (typically) 10 cents you don’t pay towards your loans. If you are working towards PSLF the less you can pay towards your loans the better.

Take Advantage of Opportunities to Lower your Adjusted Gross Income

If you have a 403(b) through your employer, you can contribute up to $19,000 to your account in 2019. That’s up to $19,000 that won’t be factored into your AGI when you file taxes next year.

Obviously your income may not allow you to max out your 403(b), but if you’ve built an emergency fund and paid off credit card debt, the more you can contribute to a 403(b) the better. Not only are you minimizing the amount you pay towards your student loans, you are setting money aside for retirement. A win-win!

But a 403(b) isn’t the only tax-advantaged account out there. Other accounts that can help you lower your AGI include:

• 401(k) – This won’t be relevant to everyone, but some who are pursuing PSLF will have their partner’s income factored in as well. If that’s the case, it makes sense for both of you to contribute as much as possible towards accounts that shield your income from taxes and, in turn, being factored into your AGI. For them that may be a 401(k).

• Standard IRA – Many personal finance experts will say that when you are younger you should contribute to a Roth IRA, which you contribute to after-tax. But if you are pursuing PSLF you want to lower your taxable income today, and that means contributing to a Standard IRA.

• Health Savings Account (HSA) – If you have a high deductible health plan, which is likely as they are becoming more and more popular, you are entitled to contribute to an HSA. You make contributions to an HSA tax free, which lowers your AGI. It also makes sense because you build a medical emergency fund, which is more important now than ever before.

• 457 Plan – A 457 plan is a plan that is offered to certain state and local government employees. Employees can contribute to the 457 plan on a pre-tax basis, thereby lowering their taxable income. This is a potentially huge benefit for those pursuing PSLF, as it’s in addition to a 403(b) or 401(k). Meaning, you can contribute to both! That’s a lot of income that can be deferred and, in turn, lower your taxable income.

 
The thing that all of these accounts have in common is this: they set you up nicely for retirement and bolster your finances.

Someone who otherwise may find it impossible to make their student loan payments on a standard ten-year repayment plan could potentially have tens of thousands or hundreds of thousands of student loans forgiven (tax free) through PSLF. While they are while they make smart money moves by consistently contributing to a retirement account (or retirement accounts), build a healthy emergency fund, and even build up a healthy medical emergency fund in their tax-deffered HSA.

If you are pursuing PSLF or are considering pursuing PSLF, you owe it to yourself to maximize it. Think of all the corporations and wealthy individuals who are taking full advantage of the tax code – there is no reason you shouldn’t too!
 
 

And unfortunately, many people are still either temporarily furloughed or laid off from work. Others may feel trapped in the jobs they do still have.

But now for the good news. Although unemployment rates are still high, the job market remains surprisingly strong. Now that companies are more versed in a fully remote workforce, they are continuing to hire for roles they may have put on hold.

It is totally possible to find a new job during COVID – here are a few tips to help you in your search.

Decide Your Urgency

 
While companies are certainly still hiring, the hiring process is trickier than before. Hiring managers are occupied with managing their now-remote workforce, and are faced with the challenges of virtual recruiting and interviewing. This may lead to a slower or more uncertain hiring process.

Further, companies may still be facing some financial uncertainty about what the future holds. If job security is important to you, you’ll want to evaluate a company’s financial decision now more than ever.

If you’re not in a hurry to find a new role, it may be worth it to wait it out. Even just waiting a few months gives companies more time to figure out new processes and their financial positions.

Ask Your Online Network

 
As with any job search, networking is so important!

Unfortunately, it may be awhile before you can enjoy in-person networking. Events like career fairs and professional club meetings are too large to meet in person during COVID, so you will have to get creative with your networking strategy.

On the plus side, there are a ton of networking opportunities online. Obviously, networking sites like LinkedIn are a huge asset to job seekers, but you can go even further than that. See if professional groups in your area are still meeting virtually, and make yourself known while on the call. You can even ask professional contacts to meet up for a virtual coffee!

And if you are currently unemployed, you can even update your LinkedIn status to let your network know of your situation and ask for help seeking opportunities. It’s surprising how willing people are to help job seekers. Of course, this does require you to be vulnerable about your position online. While asking for help online may not be the most comfortable thing, it can go a long way in helping out your job search.

Consider Gig Work

 
If you are temporarily furloughed, then gig work could be a great option for you. And fortunately, these companies are hiring now more than ever!

Companies like DoorDash, Instacart, and PostMates, and more are hiring for delivery drivers and personal shoppers. If you’re looking for some cash quickly, or for a flexible role, then check out these companies that are hiring drivers to deliver both food, groceries, and non-food products.

Ask About Remote Options

 
If there was one silver lining to the pandemic, it is that most companies were forced to adapt to remote work. This means there are more remote jobs available than ever before. If you’ve ever wanted to work remotely, this is a really good time to job search!

And even if a role is in person, you can always ask if they would be open to remote work at first. Many companies are offering flexibility in work locations to accommodate the concerns of their staff. It certainly doesn’t hurt to ask.

Other Considerations

 
And lastly, before you dive headfirst into a job search, stop to consider these things first:

 
Unemployment Benefits
 
If you are currently receiving unemployment benefits through your state, you will want to take time to do the math. Finding a job is great, but any additional income you make will affect your unemployment benefits.

This isn’t necessarily a bad thing. You may make much more at a job than you could make on unemployment, but just be sure to do the math first.

 
Safety
 
Secondly, consider the work environment of your new role and make sure it is something you are comfortable with. Is the new role in person? Will you be interacting with many other people? Does the company practice proper social distancing and protective equipment requirements?

Most of us never worried about being safe while working pre-COVID. Unfortunately, Coronavirus isn’t going anywhere soon, so make sure you feel safe and protected before you accept the role.

Whether you are facing a temporary furlough or a permanent layoff, it is likely your cash flow is taking a major hit.

The good news is that even if you are unemployed due to COVID, there are ways to increase your cash flow. This includes taking advantage of some of the aggressive relief the government has provided in response to COVID as well as non-government actions.

Cash flow is about two things: the money coming in and the money going out.

We’ll start by talking about government benefits in response to COVID, such as unemployment benefits which will help replace some of your lost income. Then we’ll go through options to decrease your expenses and finally go over pro-active ways you can create a little extra income.

Take Advantage of Government COVID Benefits

 
Unemployment Benefits. If you’ve been furloughed, laid off, or are facing reduced hours at work, you may be eligible for unemployment benefits.

To better understand what your state offers for unemployment benefits, read our article about COVID unemployment benefits. This article includes a spreadsheet we’ve created that will point you to your state’s unemployment website and give you an idea of how much you can expect to receive.

The federal government is also providing an additional $600 per week. This move was directly in response to COVID and the benefit runs through end of July. Depending on the state of the economy at that point, there may be some form of an extension.

Your state unemployment and federal benefit may not replace the entire paycheck you were receiving, but it could come close. The federal benefit is large enough that some people are receiving more through unemployment benefits than they would be if they were working.

Stimulus Checks. The first stimulus check is $1,200 per eligible adult and $500 per eligible dependent has nothing to do with whether you are employed or unemployed. This may not sustain your finances for months, but it is certainly better than nothing. We’ve been tracking closely whether there will be a second stimulus check.

Student loans. All federal student loan payments are paused through September 30th, 2020. No interest will build on these loans and each month will still count towards loan forgiveness programs. This is a huge benefit that should immediately create cash flow for student loan borrowers.

Decrease Expenses

 
Besides applying for unemployment benefits, one immediate way you can increase your cash flow is limiting the amount going out the door. Some of these actions will only be short-term fixes, but we are also assuming you won’t be unemployed long-term.

Being unemployed is never ideal, but being unemployed during COVID is better than other times; the extra $600 a week in federal unemployment benefits already proved that. But the additional benefit is that businesses are feeling a ton of pressure to take care of customers, creating opportunities to temporarily stop or limit payments.

Speak to lenders. If you’re struggling to pay your mortgage or rent, credit card payments, student loans, or car insurance, it’s a good idea to see if you can temporarily pause or lower these bills.

Do not simply stop paying. Make sure you give your lender a call! If you do not speak with them prior, you are likely to still incur late fees, interest, and your credit could take a big hit.

Call your lender and explain that you are facing financial hardship due to COVID. Ask what they can do to help. Once you come to an agreement, ask that they provide the agreement to you in writing to confirm. That way, you always have proof of your agreement in case something goes awry.

Some companies are taking more formal approaches. For example, private student loan lenders like SoFi are offering two-month forbearance which you can apply for by filling out a simple form on their website. They also are offering an additional month at the end of the two-month period, if you need it. Other private student loan lenders are taking similar action, some more or less generous.

There have been countless announcements from mortgage lenders, credit card companies, and others who have made it clear they are willing to work with their customers. Remember, while you are unemployed the best thing you can do is shore up cash. It’s worth at least asking what companies are willing to do for you.

There are also some other benefits that are automatic regardless of employment status, such as auto insurance. People are driving less, so there are naturally far fewer accidents. Auto insurers are automatically giving billions back to customers in the form of premium discounts.

Review all expenses. This is a good thing to do regularly regardless of whether you are employed or unemployed, but it should become a priority when you are unemployed. Look at all of your spending with a critical eye. Are there areas of spending you can reduce, or even eliminate, completely?

Maybe you want to keep your Netflix account now that you have more time on your hands. But you could drastically lower your clothing and social budget. Scrutinizing your budget can surprisingly do a lot to help your cash flow.

Opportunities to Bring In More Money

 
We started by talking about government benefits and cutting expenses because those are the most clear and quick ways to increase your cash flow. Now we’ll take a look at opportunities to have more cash coming into your bank account.

An Important Note. Before you dive head first into a side hustle, check with your state. Earning money through a side hustle may affect the amount you receive for unemployment. While this isn’t necessarily bad, it can certainly put a damper on your finances if you aren’t prepared for it.

Continue Job Searching. If you were permanently laid off, obviously you will want to continue job searching.

While the job market is certainly in a unique situation right now, don’t let that deter you from applying to new jobs. You truly never know who has a desperate hiring need right now.

If you’ve been job searching, but with no luck, don’t beat yourself up. There is a lot of competition right now, and companies aren’t sure what their business outlook will look like for the rest of the year. Slowing down – or even stopping hiring – is one of the things companies do short-term to shore up their finances (just like how you will be looking to shore up yours). Keep trying and continue building your network. Sooner or later, the market will rebound and businesses will hire at a more rapid pace.

Sell Items from Your Home. There has literally never been a better time to clean out and declutter your home. But with consignment shops like Goodwill being closed for the time being, you may not have a place to actually get rid of all of the items you no longer need.

Fortunately, you can always sell home items on Facebook Marketplace and Craigslist. Plenty of people are still buying. Just be sure to use safe protocols, and sanitize everything as much as possible.

Start a Business. If you’ve ever dreamed of starting a business, now is the perfect time.

Some of the world’s most successful entrepreneurs started when the market was at it’s worst, so don’t be afraid to start!

And businesses don’t have to be expensive to start. Businesses like blogging may not earn you much money at first, but they cost very little to start. With consistency and time, your blog can grow into a successful business. Especially if you are drawing unemployment and may be out of work for a few months, this is a perfect time to pour time and effort into something you may have thought of doing but never gotten around to.

Consider Other Side Hustles. Side hustles can be a great way to increase your cash flow.

There are limitless ideas for side hustles – here are a few ideas to get you started.

 
Related:

• What is Happening to Your Student Loans During COVID

• Will There Be a Second Stimulus Check for COVID?

• COVID Unemployment Benefits: Everything You Need to Know