The spread of COVID-19, better known as the coronavirus, has affected billions of people around the world, including every American. Though its effects have been dramatic and damaging, there are many ways to lessen the financial blow and get through this challenging period. I will be discussing a few means by which anyone can remain financially secure during this period, and become secure for any possible future crisis.
Having additional sources of income or finances can keep you afloat during a loss or reduction of your primary income.
Investments: Hard and Liquid Assets
Though there are dozens of forms of hard assets, they are mostly investments in material goods of which there is a limited supply in the world; real estate, gold and silver, and oil* are among the most common hard assets to possess. Investing in possession of these assets is beneficial because their value fluctuates less during a period of economic depression than what are known as liquid assets, such as stocks, bonds, and mutual funds. Your money can be withdrawn from liquid assets, though it can be a longer process than selling hard assets.
If you are in a financial crunch, selling a portion of your hard and liquid assets, preferably your hard assets, can provide you with extra finances needed to pay your bills.
*Investing in oil as a hard asset does not mean you physically possess oil. Instead, it is an investment in the oil industry, which is known for its stability.
Life Insurance
Possessing life insurance is essential, regardless of your situation. There are several forms of life insurance, and some of them do not require anyone to pass away to receive financial benefits from the program. Whole life insurance, Variable life insurance, and Universal life insurance allow what is called a Cash Value, a sum of money, sort of like a savings account, that can be withdrawn from without the occurrence of a death. Removing a portion of your Cash Value can be considered if you need extra money.
Supplemental Benefits
Long-term Disability Benefits
If you have a disability or injury that prevents you from working for a lengthy period, or permanently, you can apply for government financial assistance specifically for such individuals. This assistance can provide you with the income needed to sustain you financially for months and years to come.
Unemployment Benefits
If you lose your job, especially now, it is highly recommended to apply for unemployment benefits from your state’s Division of Employment Security, or DES. Billions of dollars are being put into the program this month. At the moment, you can even receive benefits if your hours were reduced related to COVID-19, better known as the coronavirus.
Receiving unemployment benefits is based upon how much you made before you lost your job or had your hours reduced and is usually dependent on you searching for work in your field. An exception to the work-searching requirement exists in North Carolina due to the lack of open jobs caused by the coronavirus outbreak.
In Conclusion
There are many financial resources a person can draw from during a loss or reduction of income. If you have not already taken advantage of investments, life insurance, or government benefits, when possible, I highly recommend that you start today.
