The pandemic is threatening the financial situation of Americans, causing high levels of stress. A majority experienced a job loss or a pay cut themselves or had someone in their family affected. This year, people worry about their increasing debts, retirement savings, healthcare costs, bill payments, mortgage payments, and even enough food to survive.

If you or anyone in your family lost a job or had to accept a pay cut, you know how it feels like. Even if you are among the fortunate ones who still have a job, this is a time of financial uncertainty.

Feeling anxious amid the difficulties of the pandemic is normal, but you can minimize this and cope better if you do something to stabilize your finances. There are cost-cutting measures you can implement to lower your day-to-day household expenses.

Lower Your Mortgage or Rent

If you are behind in your mortgage and are jobless, it can be a good option to sell your house. Home prices are high, there are few homes in the market, and there are many buyers, so you are in a good position to sell.

Your equity will make you liquid, and you can use what you earned from the sale to purchase a tiny home with no mortgage. This will free you from monthly payments for good. You can also purchase your tiny home in an area with a lower cost of living.

If you still have a job and only want to lower your mortgage payments, you must take advantage of the currently low mortgage rates and check if you qualify for loan refinancing. Mortgage rates are already slowly increasing, so you need to act fast. If you get a good refinance rate, you can use what you save from your monthly payments on other needs.

You can also benefit from current low mortgage rates to cash out from your home equity and use the money to clear up your other existing debts like an auto loan or credit card debts. You will save on your overall monthly payments because the interest rate on your mortgage is lower than any other credit.

If your rent is eating too much into your current budget, look for a place with lower rent. Many people are now moving to the suburbs or even to other states. If you are working from home, check with your employer on how far you can go. If you are single, consider sharing a small apartment with others.

If you are moving, take stock of your belongings and bring with you only what is necessary. This is a good time to eliminate excess from your life. It also costs less to move fewer things. Sell what you can to generate extra income. Give away what you cannot sell.

Decrease Energy Costs

Whether you are moving or not, review your energy bill. Regular cleaning, maintenance, and repair of your air conditioner, heating system, and refrigerator will ensure that they are using energy efficiently. It will also prolong the life of these appliances.

Equipment does not last forever, though, and you can only repair it to a certain extent. Your air conditioner, for instance, can only last for ten years at the most. Beyond that, it is advisable to get a reliable air conditioning installation service. A new air conditioner cools your home more quickly, saves energy, and further lowers your power bill. Not only does it provide the exact temperature you prefer, but it also keeps your indoor air cleaner, protecting you from illness.

If you can afford it, install solar panels in your home to lower your energy bill. If this is still beyond your budget, you can choose solar-powered gadgets every time you need one.

Reduce Supermarket Spending

You can lower your food budget while improving your diet at the same time. Cook all your meals at home. Make a meal plan that includes less expensive and healthier meat, lots of whole grains and beans, and fresh vegetables. For snacks, choose fruits, popcorn, and homemade low-sugar popsicles. Do not purchase processed food and junk food.

List down all your grocery needs based on your meal plan and household necessities, and trim down those necessities to the essentials. Stick to this list when you are at the supermarket. The only time you can make a substitution is if there is a product on sale that can replace what is on your list, like a different cut of meat. Try using supermarket brands for toilet paper, toothpaste, laundry soap, and other basics. Go to the supermarket that offers the lowest prices in your area.

Simplify Your Life

Living a simpler lifestyle will not only save you money both short-term and long-term, but it will also give you a paradigm shift. Instead of feeling deprived when you have less money to spend, you will realize that there are many things that you do not need and can do without.

In the end, you will see that you can survive and be happy with less money and save any extras you earn for the future. This mindset will serve you well even when the economy improves and you get to a better financial position.