People Are Making Less Money After Covid

Last Updated: April 5, 2024

How to make money at home during covid

Interestingly, savings versus spending has changed. Fifty-three percent of upper income workers cut their spending, while 43% of middle income workers did the same. Only ⅓ of low income workers were able to cut spending. 

The cuts by the upper income workers have a trickle down effect on middle and low income workers. The less the upper income workers spend on dining and entertainment, the harder it is for middle and especially lower income workers to cut spending and increase savings. 

There is a bit of good news. Since April 2020, more than 50% of Americans feel like their financial situation has improved. But that still means that just under half of us are feeling financial hardships.

Ways to Make Money

Most people have discovered that adding low paying job after low paying job is not a viable way to live. If you have certain skills, you may be able to translate them online. Check out this article to see if you are interested in any of the suggestions. 

Gig employment like Uber or grocery delivery is also an option. Thewaystoweath.com ranks the following 32 gig jobs as the “best.” Just remember to read the fine print!

• DoorDash
• UberEats Delivery Drive
• Uber Driver
• GrubHub
• Lyft
• Instacart
• Taskrabbit
• Amazon Flex
• Rover
• Bellhop
• Dolly
• Gigwalk 
• Shipt
• TaskEasy
• YourMechanic
• Helpr
• Education First 
• HelloTech
• 99 Designs
• Upwork
• Fiverr
• Handy.Com
• Care.Com
• Soothe
• Guru
• Thumbtack
• Freelancer.Com
• Airbnb
• Turo
• VRBO
• RVShare
• Boatsetter

A final way to make money is to sell off stuff. If you have a storage unit or a garage with more boxes than parking space, sell off the excess. Not only will you save on storage fees, but on the emotional stress that comes from excessive clutter. And as a suggestion, if you can’t sell it, consider donating it. Someone needs it more than you do!

How to Spend Less Money

Your first step in spending less is to know exactly where every penny is going. Track every cent you spend for at least a month. Put all that data into a written form or a spreadsheet and examine your spending. You’ll see places where you can cut expenses immediately. Don’t forget to look at subscriptions. Those sneaky monthly purchases add up fast. 

Next, set up a budget. It doesn’t have to be hard or penny perfect, it just has to be written down and followed. Try the 50/30/20 budget for a more flexible method or download a free app.

Look for other ways to save money. Take a hard look at your grocery budget and find ways to save. Food prices won’t be going down. Look at non-essential spending like clothing, vehicles, and other expenses. Is there a way to cut back on those costs? For some ideas, follow this link.

Here are more ways to cut expenses:

• Find cheaper housing options like downsizing, sharing a place, or negotiating rent
• Look at lower-cost insurance, cell plans, cable, and internet
• Cut subscriptions and memberships you can live without
• Reduce utility bills through conservation and efficiency
• Change eating habits, like eating out less and preparing meals at home
• Use discounts, coupons, shop sales, and buy store brands
• Find free entertainment options like parks, libraries, and free events
• Review all recurring expenses and look for areas to save

For more specific tips, see our articles on reducing grocery costs, saving on utilities, and cutting discretionary spending. Every dollar counts when trying to cope with reduced income.

Debt and Savings

If you are like most Americans, you also have debt and debt is dragging you down. You’ll find many articles on the Pacific Debt Relief blog, that deal with eliminating debt. Check them out for answers on how to cut debt. 

Managing Debt During Financial Hardship

Many people have taken on additional debt during the pandemic or are struggling with existing debt as their income has decreased.

Here are some strategies for managing debt when finances are tight:

• Prioritize paying for essential expenses like housing, utilities, and food first
• Contact your creditors to explain the situation and request reduced payments or deferments
• Consider consolidating multiple high-interest debts into a lower-interest loan to reduce monthly payments
• Use balance transfer credit cards to save on interest expenses
• Set up payment plans with collection agencies if you have debts in default
• Explore options like debt settlement or bankruptcy if you are unable to repay your debts

For more help getting out of debt, check out our articles on lowering monthly payments and debt settlement vs. bankruptcy. Our experienced debt consultants can also provide a free evaluation and personalized advice.

Generating Income

With many people dealing with reduced income, finding ways to bring in additional money can provide relief.

Here are some options to consider:

• Take on part-time or freelance work to supplement your income
• Monetize existing skills or hobbies, like consulting, tutoring, or selling handmade crafts
• Perform odd jobs like dog walking, house cleaning, yard work, and junk removal
• Rent out extra space, vehicles, equipment, or tools you aren't using
• Resell items online through platforms like eBay, Facebook Marketplace, Craigslist
• Participate in focus groups, take surveys, or complete tasks for money

For more ideas, see our articles on making money from home and turning hobbies into income. Every little bit helps when trying to cope with financial hardship.

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