There is no denying that 2020 has not been the year we all expected it to be. A lot of people have found themselves in a difficult financial position because of the coronavirus pandemic.
More Homeowners Are Falling Into Negative Equity
Research indicates that we could see as many as one in ten borrowers in negative equity due to the consequences of the COVID-19 pandemic from the falling house prices.
A home is deemed to be in negative equity if the property becomes worth less than the home loan that is secured by it. This can make it difficult for people to re-mortgage or move home, resulting in severe financial difficulty for a lot of people.
Home loan borrowers’ rights to a fixed-rate housing loan are not clear-cut. If you find yourself locked out of this option because you are in negative equity, the best thing you could possibly do is to look for different ways to increase your income. Of course, boosting your income is something that would be beneficial irrespective of whether you are a homeowner or not.
A Lot of People Have Dipped Into Their Retirement Fund
During the COVID-19 pandemic, a lot of countries allowed people to access their retirement savings early so that they could meet their current expenses. Some people spent a lot of the money they had saved for their retirement.
These individuals need to rebuild their personal balance sheets. Plus, if they are currently in negative equity, they will need to work on eliminating this as well.
Women, especially, are disadvantaged when it comes to retirement savings. This is because a lot of females take time out to have a family.
Using Freelancing to Rebuild Your Finances After the Pandemic
As most people realize, a lot of people find themselves in a difficult financial situation because of the pandemic. However, this does not mean that you cannot get yourself back on track. One option when it comes to rebuilding your finances after the COVID-19 pandemic is to start freelancing.
Freelancing refers to a work situation whereby the individual works for themselves, rather than being employed by a business or organization. This is something you could do alongside your current job or you could work on a freelance basis full-time. You can check out the Ultimate Freelancing Library for all the resources you need to get started with this.
What Are the Benefits of Using Freelancing to Make Some Extra Money?
There are a lot of reasons why freelancing makes sense for those who are looking to add some extra money to their income. To begin with, there is a great sense of freedom that is associated with freelancing. You can use your spare hours to make some extra cash.
All you need is the Internet and an Internet-compatible device, be it a laptop or even a tablet. This means that you could earn money while you are on the train commuting to your usual job or while you are sitting on the sofa in an evening. You can optimise your time effectively, ensuring you are putting some more money back into your bank account.
The sky is also the limit when it comes to freelancing. You can earn as much money as you are able to within the time that you have available. You are not capped at a set monthly wage, as is typically the case when you work in traditional employment.
Instead, you will be paid per task in most cases, as opposed to being paid per hour. Of course, there are freelance jobs that do pay per hour. However, a lot of freelancers prefer to set their own rates for every job that they carry out, ensuring that they are compensated accordingly. Pricing your work can be difficult, to begin with, but this is something that you will get better at as time goes on.
Another benefit associated with freelancing is the fact that it can open many doors for you. You never know where freelancing is going to take you. You could end up speaking with someone who opens the door to a lucrative contract for you. By getting involved in the freelance market, you are going to be communicating with more professionals on a regular basis, and this can only be a good thing because more people will learn about your services and what you have to offer.
Plus, freelancing means you are diversifying your income more. A lot of people have lost their jobs due to COVID-19 pandemic. This year has delivered a harsh blow for a lot of people. They have found themselves needing to find more work because the social distancing restrictions have meant that it has simply not been possible for them to continue with their work as they would have before.
With freelancing, as you can work from home and it is flexible in nature, it gives you the ability to ride through difficult periods. You have the flexibility to take on different jobs and source different types of work that can help you when your traditional job may not be a possibility. You have probably heard the saying that you should not put your eggs in one basket, and that is exactly what freelancing helps you to avoid.
It is also worth pointing out that this COVID-19 recovery strategy makes sense for a financial point of view because it will not cost a lot of money for you to get started. As mentioned earlier, all you need is an Internet connection and a laptop to get started. This means that you do not have to spend a lot of money to start making money, which is often the case when it comes to other business ventures and opportunities.
Plus, considering the current climate, we can expect more and more businesses to be conducting their activities remotely. Therefore, there should be more opportunities available for freelance workers, making it a market that appeals now. You may find you have a lot more success finding freelance work than you would going down the traditional employment route.
How Can You Earn Some Extra Funds After the Pandemic?
We would all like some extra money, wouldn’t we? Nowadays, thanks to the Internet, there are many ways you can make some extra income. It is always a good idea to diversify your income, as this minimises risk should you be made redundant or experience any other sort of issues.
Or perhaps you are just looking to gather a bit of extra money to reduce your mortgage, finally take the holiday you planned before the pandemic, or buy that something special you wanted to buy? No matter what the reason, let us look at some different ways to make extra cash…
1. Sell some of your stuff – One of the easiest ways to make a bit of extra cash is to sell some of your belongings that you do not need anymore. You can easily do this online via eBay and other auction websites. Do you have any old mobile phones that you do not use? Even if they are broken, there are companies that will give you cash for them.
2. Freelance – If you have a skill that can be provided over the Internet, for example, writing, admin work, or design work, you should consider freelancing. This is something you can do in your spare time, as and when suits you, and it is a great way to make some extra money.
3. Rent out your driveway – If you live in a popular area – somewhere that is popular with either tourists or businesspeople – you can rent out your driveway over the Internet. Payment will be arranged in advance, so all you need to do is leave your driveway empty.
4. Take surveys online – There are lots of paid survey websites online today, which presents you with an easy way of making a bit of extra cash. Some of these websites can be frustrating to use so make sure you read the reviews beforehand.
5. Provide online tutoring – Why not tutor in an area you are trained in? This could be anything from providing personal financial advice to teaching someone English.
6. Invest in an online store or providing a service – There are many different online store options for people today, from niche Amazon websites to training yourself to provide Facebook Ads for small and medium businesses. Assess your options to find something that is right for your financial situation and your attitude to retraining, and this will help you to grow your skills and income .
7. Start a blog – Do you have something you are passionate about? If so, you already have the basis for a good blog. While you probably will not make much money, to begin with, after time, you will be able to make an income through sponsored ads, affiliate marketing, donations, guest blogging, and much more.
As you can see, there are many ways you can make some extra cash today. Hopefully, you have found something that appeals to you from the suggestions above.
Achieving a Wealthier Future
A wealthier future is something we all want to achieve. However, achieving it can seem like an extremely difficult challenge. The decisions you make today will have an impact on your financial future, and so it is important to start putting the wheels in motion now so that you can have a wealthy life ahead of you. So, what steps should you take?
Enhance your skills – If you want to make moves up the career ladder, you need to give yourself the tools to do so. Now is the perfect time to start advancing your skillset. This does not mean that you need to take time off work or go to university. You can get an online degree nowadays, which means you can do your degree from the comfort of your own home and so you can adapt your study schedule to suit you.
Start setting yourself small goals – One of the biggest financial mistakes that people make is setting goals that are too big. The best thing to do is set yourself small goals. Once you have achieved these, you can then set yourself more goals. This will all work towards your bigger goals, rather than giving yourself a mountain to climb to start with.
Work for your own dreams, not for someone else’s dreams – A lot of people base financial freedom and monetary success on other people. This is part and parcel of living in the social media age. We tend to judge our lives based on what is ‘expected of us’ or what we deem we should be doing at a certain age.
However, you need to work on your own dreams. What do you want from life? Do not base your decisions on other people. Start working towards what you really want. It is time to do a little bit of soul searching.
Diversify your income – There are many ways you can earn extra money today, and so it is a good idea to look for additional streams of income. Some good examples include freelancing online, renting out your driveway, providing online services to businesses and selling items online.
Start saving for your retirement – If you have not started putting money away for your retirement, you need to start doing so. A lot of people do not think about their retirement in their early years.
After all, there are so many things to think about now, it can seem almost impossible to consider your life when you are 70 years old. However, the sooner you start saving for your retirement, the easier it will be, and the wealthier your future will be thanks to the impact of compound interest.
If you follow the steps that have been provided in this blog post, you can give yourself the best chance of having a wealthier and financially sound future. From enhancing your skillset to saving for your retirement today, there is a lot to consider, but it will all be worth it in the end. This can help you to overcome the negative impact of COVID-19.
If you wish to comment on an article or post, please use the contact form below.
