We the People

My January blog post was all about making 2020 a decade without debt.  Then COVID-19 showed up and took out our economy.  As I sit here on my couch writing this, I wonder how long the epidemic will last and how long it will take us to recover, economically.  Unfortunately, I don’t have an answer for either question.

One thing I do know, though, is what a nation recovering from a recession looks like.  I filed quite a few bankruptcies for people who just couldn’t hang on after the 2008 economic collapse.  In fact, I was still filing bankruptcies in 2012 for people who managed to squeak by those shaky years after 2008, only to succumb to creditors a few years later.  Believe me, the last thing I want to see is another five years of economic turmoil.  I know you feel the same way, too.

In order to avoid a repeat of that disaster, I want to give you a list of things you can do to help keep your head above water while we weather this economic crisis.

-Don’t panic.  Yes, it’s bad but, it could be a lot worse.  If you can keep calm and think through your options methodically, you’ll be a whole lot better off in the long run.  As I’ve told many of my bankruptcy clients in the past, when it comes time to make tough decisions, you’ll likely know what you need to do to protect you and your family.  At the end of the day, we can get nearly everything back, except our loved ones.  There’s nothing like a pandemic to bring our priorities into sharp focus.

Try not to view making tough decisions as an ending.  It may be easier said than done but, try to view it as a temporary change in circumstances.  Mindset is everything in this situation.  Do the best you can to stay positive and keep moving forward.  If you can view this as a temporary setback, you’ll be more successful in bouncing back over time.

-File for unemployment.  I think that will likely be the thing that saves people who lose their jobs.  While the stimulus checks will be helpful, a one-time payment that wouldn’t cover some people’s rent or mortgage for a month, won’t go very far.  Continuing unemployment benefits will, hopefully, keep you and your family fed and healthy while we ride this out.  Don’t wait to apply, if you’ve lost your job.  The sooner you apply, the sooner you’ll get money coming in.  Phone lines and websites are clogged so, you’ll need to keep trying.  Don’t give up, you will eventually get through.

-Reduce your expenses.  Now is the time to look through your finances and see where you can cut back.  There’s nothing fun about it but, this is one of the times when the going is getting tough so it’s time for the tough to get going.  If you can live without it, cut it out of your expenses.  The reality is that we don’t know how long this will last.  Don’t wait to start adjusting your spending.  The sooner you get on top of it, the better.

-Negotiate with your creditors ASAP.  Again, don’t wait to do this.  Start working on it now.  List out your debts and bills then start from the beginning and call them all.  Ask for as much relief as you can get to give you breathing room to get through this situation.  You’ll be surprised how much your creditors will probably be willing to work with you, right now.  If you need help negotiating with creditors, I created a downloadable list of my top 10 Creditor Negotiation Tips to help you with this task.  It’s free so, download it and use it!

-Get creative.  Communities are pulling together and building funds to help people get through this, financially.  For example, if you are a restaurant worker or bartender who is out of work, there are industry groups out there who are providing some financial help for you.  Do some research and you might be surprised what you can find.  Churches, non-profits and your local governments can help you with things like utility bills, food and medical care.  Reach out and ask for the help you need to stay healthy and safe.

-Try to avoid taking on debt.  I’ve seen a lot of people talking about using credit cards to bridge the gap in income.  Of course, every situation is different but, try not to max out your credit cards just to maintain a lifestyle.  If, on the other hand, you are at the end of your rope and you need to buy food or critical medicine, then do what you have to do.  Just be mindful of how you are spending your money in this time of uncertainty.  We don’t know how long this will last so, be careful with your spending if you can.

-Try to avoid tapping your retirement funds.  You may have heard that the CARES Act passed on March 25, 2020 temporarily allows you to take a penalty free loan from your retirement account(s) of up to $100,000.  Unless you have no other option, don’t do it.  If you do take the money out and don’t put it back, you will lose out on valuable time and compounding which is how people lose out on earning interest and building their retirement funds, over time.  Remember, you can’t borrow for retirement.  Use this option as a last resort.

-Listen to your team.  Right now, you need to be talking to the people who advise you about money related things in your life.  This could be your human resources manager at your job, your tax professional, accountant, lawyer and if you are lucky enough to have invested in the stock market, your financial advisor.  Don’t be afraid to contact them and ask questions about your situation and what you need to do to get through this.

Most importantly, don’t panic and make rash decisions like cashing in investments.  If you are thinking of doing that and you have a financial advisor, talk to them and ask them what course of action you should take to meet your immediate and long term investment needs before you do anything with your investments.

-Get legal help if you need it.  If you need legal help right now, there are free resources you can use to point you in the right direction.  First, you can start with your state’s bar association.  If you contact them, they can help you figure out where to go to get your question answered or direct you to free legal resources in your state.  You could also contact your state attorney general to see if they have any consumer resources to help you with your issue, if it is consumer related.  For contact information for those two offices in your state, check one of these lists I made for your convenience: Alabama to Missouri or Montana to District of Columbia.  Once you get to the list, click on it and open it, then scroll down to your state to find the information you need.  There’s all kinds of good information on these lists!  You can also check the American Bar Association website.  It may be able to help you find assistance, too.

-If you need immediate help for domestic violence or custody issues, contact your local clerk of court.  They can’t give you legal advice but they can help you figure out where you need to go to get the help you need.  Don’t sit in an unsafe situation.  When you feel it’s safe for you to do so, call and ask someone for help.  There are people out there who can, and will, help you.

-Stay at home.  Now more than ever before, there is safety in numbers.  The higher the number of people who stay at home, the safer we all are.  The longer it takes us as a nation to get on board with this concept, the more people will get sick and the longer this situation will last.  That means the longer it will take people to get back to work, start making money and start getting their finances back on track.

Clearly, We The People are in control of this because we are in control of our own actions.  Incidentally, this true for most areas of our lives, too.  I think it will be interesting to see the impact we can make when we all decide to act as one in the face of ANY obstacle, not just this virus.  What an incredible demonstration of the power of the people.  Let’s come together and do what we need to do, right now.  Stay at home!

The last thing I want to say in this blog post is, be kind.  Of course, be kind to each other (in the stores and on the internet).  Remember to also be kind to yourself and your family, while we are all spending 24/7 together.  This, too, shall pass.  When it does, you want to look back on this and see that more often than not, we were our best selves, acting together to save our most vulnerable citizens.  Again, I realize that may be easier said than done.  Just try to remember that brighter days are coming and set your eye on that horizon as best you can.  Remember, we’re all in this together and, together we stand!

P.S.  Make sure you check out my online courses, books and resources, too!  Investing in your money management education is an investment in yourself.  That’s the best investment you’ll ever make, I guarantee it!.  Don’t forget my weekly Facebook live videos on Facebook.com/newcashview, Instagram @joyalfordbrand and on my YouTube channel NCVTV. You can catch me twice, on Mondays between 3:00 p.m. and 4:00 p.m. for my Monday Money Management Minute and Thursday evenings between 7:00 and 9:00 (Eastern Standard time), for my weekly NCVTV episode. They are packed full of useful and entertaining money management information! If you’ve missed any NCVTV episodes, you can see the latest on newcashview.com or you can check out my YouTube channel and get caught up! You can get there by clicking here. Remember, like and share the NCVTV videos on Facebook and all your social media platforms, so others can benefit from them, too!

#studentloanlama #thedollarlama #dollarlama #coronavirus #covid19