How to Survive Cash Shortages and Income Loss

Economic hardships have impacted a lot of people in the last two-plus years. The pandemic saw people lose their jobs in record numbers. With it, items like auto insurance and medical care have also been difficult to obtain. And having enough money to pay for a little bit of fun is also important to maintaining good mental and emotional health.

We’ll talk about all of the ways you can try to survive a cash shortage in your life, whether it is temporary or permanent. Low-income auto insurance is available in certain states for those who meet certain income thresholds.

We’ll talk about how to ask others for help during tough times, too. These tips can hopefully help you get through the rough patch in your bank account and create a better budget.

Government Assistance Programs Offer Savings

Programs like Medicaid or food stamps are some of the most well-known ways the U.S. government tries to help citizens in need. These programs aren’t always the most effective way to take care of yourself in the long term, but it doesn’t mean they can’t help you crawl out of your tough circumstances in the short term.

Insurance is very expensive but also important, even for those who have lost their job. If you live in a state like New Jersey, you can purchase coverage for only a dollar a day. This is very basic insurance; it is not complete auto insurance coverage.

Dollar-a-day auto insurance will usually only pay for personal injuries you sustain in an accident. Damage to your vehicle and others may be hard to pay for. There are several costs of not having auto insurance, as getting pulled over without insurance is illegal in most states.

Cut Back on Unnecessary Purchases to Save Money

It’s important to still have fun when you are living in poverty. Having good mental health will help you think more clearly and get back on your feet. Entertainment is an instrumental part of this, but you may need to cut back on a few things.

Only get Starbucks a couple of times a week. Subscribe to Netflix, but drop Hulu and Paramount+. Buy a cheaper present for your child at Christmas. These compromises may seem hard at first, but knowing they will help you get back to your previous lifestyle should help you feel better.

Survive Cash Shortages

Ask for Financial Help From Friends or Family

Many people lost their jobs during the coronavirus pandemic. Not all family members may have the money to help you, but it’s at least worth a try to ask for help. See if retired grandparents or older, more financially secure family members can lend a helping hand for a couple of months.

Ask your family if they will help pay for essentials like food or electricity. Surviving a cash shortage is also about having a positive attitude and using the money you do have wisely. Think more carefully about what you really need in life, and this will help you overcome difficulties in life and come out stronger on the other side of it.

Shawn Laib writes and researches for the auto insurance comparison site, He wants to help people better understand how to budget and overcome financial problems.


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