It is still hard to believe that the world has been going through a pandemic since early 2020. The COVID-19 virus brought on so much change in such a short amount of time, so much so that it still feels like a fever dream at times. This global pandemic affected nearly every aspect of people’s lives, especially in finances. Unfortunately, COVID-19 is still having adverse effects on people’s finances in a variety of ways.

Many Individuals Lost Their Jobs

When the pandemic first began, many individuals made the shift to remote working. However, not everybody was so lucky as to make this shift. Instead, many individuals were either furloughed or laid off altogether. And this is unfortunately still happening with some companies. It has been difficult for some companies to bounce back from the pandemic, leading to the need for budget cuts. Naturally, losing one’s job takes quite the impact on their personal finances, especially as there is no promise of a new job coming along soon. The loss of this income has led to many people still relying on unemployment.

Salary Cuts

Because of budget cuts that companies have had to make, some individuals are now earning less in their positions than they were earning prior to the pandemic, whether due to salary cuts or lesser hours. This income loss has led to many having to reconfigure their budgets, even forcing some to find new apartments for less rent. In addition to salary cuts, many employees have lost out on yearly bonuses, the pandemic being the leading reason. This has been a difficult adjustment for all but especially for those who rely on these bonuses for the holidays, student loans, or other reasons.

Unable to Save For Retirement

Due to the factors mentioned above, COVID-19 has put a halt to many individuals’ retirement plans. It can be tricky, even impossible, to put money towards retirement savings when you barely have enough to meet basic needs. With current generations already being at a disadvantage to retire early due to college debt and other economic factors, throwing a pandemic into the mix has only continued to drive many people’s retirement plans into a pit.

As a result of all of these factors, the pandemic has also made many individuals stress about having enough money to buy basic necessities, pay their rent, afford gas and much more. Many people have fallen into debt just trying to make ends meet. Though the pandemic has taken a lot of patience and learning, it has not softened the blow to people’s finances. As the world slowly returns to a sense of normalcy, individuals are hoping to see their finances pick back up.