These 8 money moves can help you make up for lost income

On Oct 5, 2021

kate_sept2004 | E+ | Getty Images

The recovery from the Covid-19 pandemic has been slower than a lot of people expected.

For many Americans, that means their incomes are not yet back on track or may have suffered again during the onset of the delta variant.

Data shows that hiring is still slow. Weekly initial jobless claims were up more than expected last week. Continuing unemployment claims were also higher.

While many unfilled positions are available in certain industries, other workers may struggle to find a fit that matches their experience.

Regardless of whether a financial setback has just hit you or you have been unemployed for months, revamping your strategy to find a new job or more income can help increase your chances of success, according to Winnie Sun, a financial advisor and managing director at Sun Group Wealth Partners in Irvine, California.

These are the tips that Sun said she has been giving clients who are in this situation.

1. Search for Covid-19 assistance

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

To find out what might be available to you, Google three words — Covid financial assistance — with your location turned on, Sun said.

Just by doing that search, you should be able to find programs that weren’t previously on your radar, including ones aimed at specific demographics or industries.

2. Seek out temporary income

If you typically work in a field where jobs are no longer available, look for other ways where you can potentially find work quickly, Sun said.

That could include making yourself available for freelance work or one-off tasks.

“The key is to bring in income,” Sun said. “You don’t have to love your source of income right now.”

3. Avoid raiding your retirement benefits

Money you have set aside in a 401(k) or individual retirement account, including Roths, should stay there, if possible.

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

Instead, focus on ways you can bring in more income and reduce your expenses.

4. Tighten your budget

Take a look at how much you’re spending and look for ways to slash your expenses, starting with your biggest costs.

If you live in a two-car household and can survive with just one, consider selling a vehicle or even just temporarily cutting it from your insurance policy, Sun said.

Also look for ways of reducing your overall living expenses, either by moving in with a friend or family member or taking on a roommate to help share your costs.

So often, people think that you should only be talking to us when you have a lot of income and you’re able to invest, and that’s actually not true.

Winnie Sun

managing director at Sun Group Wealth Partners

Once you have tackled those big-ticket items, evaluate whether there are…