These 8 Money Moves Will Help You Make Up For Lost Income

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Recovery from the Covid-19 pandemic is progressing slower than many expected.

For many Americans, this means that their income has not yet returned to normal, or may have suffered again during the delta offensive.

The data shows that hiring continues to be slow. Weekly initial jobless claims rose more-than-expected last week. The number of applications for unemployment benefits was also higher.

While there are many unfilled vacancies in certain industries, it can be difficult for other workers to find a suitable vacancy that matches their experience.

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According to Vinnie Sun, Sun’s financial advisor and managing director, whether you are financially unlucky or have been unemployed for months, changing your strategy for finding a new job or increasing your income can help increase your chances of success. Group Wealth Partners in Irvine, California.

These are the tips that Song says she gave to clients who find themselves in such a situation.

1. Find help with Covid-19.

Federal, state and local programs have been enacted to help individuals and families cope with the pandemic.

To find out what may be available to you, Google uses three words – Covid financial aid – to indicate your location, Sun said.

By simply doing this search, you can find programs that weren’t on your radar before, including programs that target specific demographics or industries.

2. Look for temporary income.

“If you usually work in an area where work is no longer available, look for other ways where you can potentially find work quickly,” Sun said.

This can include being available for freelance work or one-off tasks.

“The main thing is to generate income,” Sun said. “You don’t have to love your source of income right now.”

3. Avoid stealing your retirement benefits.

Money that you put aside in a 401 (k) retirement account or IRA, including Roths, should stay there if possible.

“This should be seen as a last resort,” Sun said. “I wouldn’t touch it if you could.”

Instead, focus on ways to increase income and cut costs.

4. Reduce your budget.

See how much you are spending and find ways to cut your expenses, starting with your biggest expenses.

According to Sun, if you live in a home with two cars and can survive with one car, consider selling the car or even temporarily removing it from your insurance policy.

Also look for ways to cut down on your total living expenses, either by moving in with a friend or family member, or by hiring a roommate to help split your expenses.

Very often people think that you should only talk to us when you have a lot of income and can invest, but in reality this is not the case.

Winnie Sun

Managing Director of Sun Group Wealth Partners

After you’ve tackled these costly issues, assess if there are other monthly bills, such as phone, Internet, or streaming TV subscriptions, that you can reduce or even cut entirely.

Also, look for items in the house that you don’t need. Everything from old game consoles to fitness equipment can be sold online.

“Anything that you think doesn’t really matter, I think you’ll be pleasantly surprised to know that it’s online,” Sun said.

5. Make sure you have health insurance.

If you lose your job, your employer will allow your health insurance to be renewed. But this program, known as COBRA (named after the Consolidated Omnibus Reconciliation Act of 1985), is often the most expensive choice.

Instead, check with your GP and dentist to find out what other forms of insurance they accept.

“They often know other low-cost options that you didn’t even think about,” Sun said.

One Sun client was able to receive emergency dental care and pay 75% less costs after switching to her dentist-recommended plan, she said.

6. Talk to a finance professional.

Even if you’re broke, Sun says it’s a good idea to seek help from an accountant or financial advisor.

They can help identify government programs or tax breaks that you can now qualify for, she said. In addition, they can assess which accounts are best to use as a last resort.

“Very often people think that you should only talk to us when you have a lot of income and can invest, but this is actually not true,” Sun said.

7. Be active on social media.

Job seekers take part in a job fair at the Los Angeles Post Office on September 30, 2021.

Frederick J. Brown | AFP | Getty Images

Social media can help you find sources of work beyond traditional job postings.

Groups on Facebook or LinkedIn for people in your industry or who share your interests can help you find jobs listed outside of job forums or connect with hiring professionals.

“You could find a job very quickly, temporarily or permanently,” Sun said.

Also, remember to update your LinkedIn profile to include an avatar to show that you are looking for a job. Ask people you’ve worked with before to write links that will be easily accessible on your profile.

8. Find a recruiter.

Many companies looking to hire employees have hired recruiters to help them with their search.

Contacting one of these professionals can help you identify opportunities that you might not have considered.

Since recruiters are usually paid by the hiring companies, Sun said, this advice usually won’t cost you money. Plus, it can help you find a job with a company that you are truly interested in.

“Sometimes you need a recruiter to better represent you,” Sun said.

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