coronavirus and your finances handout · 2020. 4. 17. · once you get your financial house in...
TRANSCRIPT
Handout Packet
Coronavirusand Your Finances
A Carebridge Seminar
Objectives
• How to assess your situation• What to do now• What to do going forward• What to do to rebuild
1
2
What Do I Do Now?
Step 1: Slow Down
• Assess the current situation rationally.
• Identify the cash you have RIGHT NOW, and howmuch you are certain to get in the near future.
• Last paycheck, unemployment benefits, governmentsubsidies
Will I Be Okay?Step 2: Project
• Make a list of everything youspend money on.
• Add them together to get atotal.
• Can you/have you filed forunemployment benefits?
3
4
Balancing Cash, Incomeand Expenses
Step 3: Protect.• You know what you have. You know what you need.
• If you need more than you have, it’s time to reducespending.
• Identify items to reduce or eliminate from Step 2.
• You may want to choose to ignore debt payments. *
* Call your creditors; be aware of the implications
Trimming the Outflows
Step 4: Recalculate
• Using the reduced budgetfrom Step 3, determine howlong your current moneywill last.
• Some help may be on theway if you qualify.
5
6
Be Realistic
Step 5: Negotiate
• First with yourself:• I can live without _________and _______ but not ________.• Must haves should reallybe MUST HAVEs.
Be Honest
Step 6: Negotiate with Others
• Call your creditors.• Ask for extensions, payment holidays or reducedinterest rates.• Must haves should really be MUST HAVEs.
• Ask for help• Is there anyone you know in a position to help you?
7
8
Recover
Step 7: Rebuild
• This will get better. Whatcan you do NOW to positionyourself such that this neverhappens again?
• Improve skills, find extrasources of income, cut bills
• Clothing*
• Of COURSE you needclothes…• Entertainment• Eating out• What is YOUR bad habit? ;-)
Non-Essential Expenses
9
10
• Pay yourself first!• Use automatic transfers• Use payroll deduction• Take advantage of your employer’sretirement plan
How to Save
A quick and easy way to save alittle money is to toss your sparechange into a jar or piggy bank!
And Don’t Forget
11
12
Become educated, set goals, make budgeting a priorityand get to work.
Be willing to sacrifice where able.
Maintain and revisit your budget progress weekly.
Take advantage of Carebridge budgeting resources,money management apps and other tools readilyavailable.
You Can Make It Happen!
Free Budgeting Apps to Try
Mint
PocketGuard
You Need A Budget
Wally
Goodbudget Simple
13
14
Internal Revenue Serviceirs.gov
Dept of Labordol.gov
National Federal Credit Counselingnfcc.org
United WayUnitedway.org/local/united-states
Resources
ConfidentialServices
800-437-0911www.myliferesource.com
Contact Carebridge
15
16
The coronavirus pandemic is impacting our nation’s health
and the economy. Many people are finding themselves
struggling financially during this unprecedented time.
While the economy is likely to improve in time, here are
some resources to help you survive in the short-term.
• Congress has passed a $2 trillion stimulus bill that will
provide financial support to individuals and companies.
The bill will provide a one-time payment of $1200 for
individuals and $2400 for couples, with $500 added for
every child. There are income caps, and the check
won’t likely reach your home until May.
• The IRS has extended the deadline for filing federal tax
returns and paying any taxes owed until July 15th. This
is automatic and doesn’t require filing for an extension.
• Health insurance providers are required to cover
preventive services related to coronavirus without cost
sharing.
• Federal student loan payments have been suspended
through September 30th with no accrual of interest.
• The Department of Housing and Urban Development is
suspending all home foreclosures and evictions until
the end of April.
• Some banks and mortgage lenders are being more
lenient or offering extensions on making payments –
check with your specific institution and ask for a grace
period. (It may take a lot of patience and several calls
to get through – keep trying.)
• Most utility companies are offering leniency and not
shutting off essential utilities during this emergency.
Check with your individual providers.
• Unemployment benefits have been extended. File with
your local state unemployment agency as soon as your
job is in jeopardy.
• Credit card companies may be able to work with you if
you can’t make the minimum payment. Call them to ask
if they are waiving late payment fees or interest
charges.
If you need help figuring out a budget and how to make
ends meet, contact the National Foundation for Credit
Counseling (nfcc.org) or contact Carebridge and ask to
speak with a money management consultant.
Copyright © 2019, Carebridge Corporation. All rights reserved
How to Lower Your Financial Stress
Money worries are among the most common sources of personal and family stress, according to Consumer Federation of America (CFA).
Living with too much of any kind of daily pressure can take an emotional and physical toll, contributing to sleepless nights, backaches or headaches or, over time, even life-threatening diseases, such as high blood pressure or heart disease.
Whether your credit card balances are soaring, or you and your partner are arguing constantly over nickels and dimes, there are things you can do to relieve financial stress.
Take a Breather The CFA suggests taking these steps to ease money-related stress:
• Focus on what you have, not on how much you’re lacking. List all your possessions, including material things, your health, and your relationships.
• Eliminate clutter in your life. Tossing out what you don’t need and organizing the rest can tidy up your emotions. So, can meditating or sharing your feelings with a nonjudgmental person.
• Take care of yourself physically. Exercise is one of the best stress reducers. Eat a balanced, healthy diet.
-----
---
----=-=-- -
----- -
--
-----------;..---------------
Talk it Out If conflicts with your significant other over money matters are a primary source of stress, talk it over honestly and openly. Write down your short- and long-term financial goals to learn where the two of you can focus your discussions. Put your relationship first, while nurturing each other’s needs. Compromise, if necessary.
Take Action Exercise, positive thoughts, and conversation may help in the short term, but if you aren’t fixing the cause of your money worries, the stress will bounce right back into your life. You need to take action if money coming in is less than money going out; if you’re able to make only minimum payments on your credit cards; or you’re relying on plastic for essentials, such as food or rent.
To improve your financial health, the CFA suggests:
• Set up a budget. Write down where all your money is going – mortgage or rent, car payments, food, gas, cell phone data plans, and clothing. Then, see what can be adjusted so you can live within your means. Create a new spending plan and stick with it. If there’s nothing left to trim from your budget, you may need to think about new income sources.
• Stop taking on new debt, immediately. If this means not eating out, not indulging in expensive entertainment, or giving up a second car and taking public transportation, then so be it. Learn if you qualify for public or private financial assistance. Use low-interest savings to pay down high-interest debt. Debt can be very expensive to carry; once it’s paid off, your payments can go to savings instead.
• Get in touch with any creditors. If you can’t pay what they want, explain your situation and ask about setting up an acceptable payment schedule. They may be willing to work with you. Stopping the nagging phone calls from creditors can significantly ease stress.
• Get help, if necessary. Be wary of for-profit or non-credentialed counseling organizations, especially if they ask for a large advance payment.
A safer bet is the National Foundation for Credit Counseling Service (NFCC). For little or no cost, an NFCC counselor can help you develop a budget and a plan for addressing your total financial situation. Visit the NFCC Web site and click on “getting help.” Resources are available in Canada from The Financial Consumer Agency of Canada (FCAC) website.
It is possible to get out of debt, though doing so may require new ways of thinking and acting. But as soon as you start taking decisive steps, you should feel the financial stress start to ease.
Adapted from The StayWell Company, LLC ©2019
Contact Carebridge at 800.437.0911 or visit www.myliferesource.com for more information!
Copyright © 2019, Carebridge Corporation. All Rights Reserved. I!] . Oo aaa ·--
An economic downturn caused by world events can leave
many people feeling helpless, especially if their income
has been reduced. However, there are steps you can take
now to live within your means. Developing self-control of
your spending is a basic step in cutting the cost of living.
Here are some rules to keep your spending in check.
• Pay Cash — Instead of charging everything to your
credit card, make purchases with money, a check, or
a debit card. Use credit only when you can pay off the
balance in full.
• Make a Budget — Keep track of your income and
expenses for several months (or look back at your
receipts) to come up with a realistic budget, then stay
within your spending plan.
• Limit Your Debt — Other than housing, keep your
debt to less than 20% of your take-home pay.
• Use a Shopping List — Before purchasing groceries
or other household items, make a list. Stick to your
list; don’t buy on impulse.
• Eliminate Luxury Spending — Divide purchases
into things you need and things you want. Most of us
can live without premium movie channels, designer
clothing, and the latest technology.
• Seek Professional Help — Get the help of a financial
planner to see if you are using your money wisely.
Consumer credit counseling services may be availa-
ble at low or no cost.
Once you get your financial house in order and your in-
come returns to where it once was, you should take steps
to prevent future financial hardship.
• Plan for the Future — Make a list of items you need
to save for in the future such as college, a house, or
retirement. Set aside money each month.
• Have an Emergency Fund — Ideally, you should
have enough money in savings to pay your expenses
for six months. This will help you survive an unex-
pected lay-off, the death of a spouse, or a fire.
Use credit cards only when you can pay
off the balance in full.
Spending within your means takes discipline and some
sacrifice. But it will help you achieve your financial goals
in the long run and spare you a future of insurmountable
debt and possible bankruptcy.