Money, Savings, Debt, and How to survive COVID-19!

Top of Mind:

Hey beautiful people, Easter Sunday at the beach soaking up some sun

I hope your week has kicked off to a positive start, and if not, it's not too late to start fresh tomorrow. I am going on day 43 of working from my apartment in East Oakland and hearing the same helicopter every day between 2-6 pm. Has anyone else seen or heard this same mysterious helicopter?

This week whats top of mind for me is MONEY. That's right, when is money not at the top of my mind. This time it's at the top of my mind because every day seems very unpredictable. Left and Right our economy is slowly sinking (not to sound depressing), and the stay at home order appears to be creeping into summer. Daily I get on LinkedIn and see several of my peers looking for work because they have just been laid off. It's time for us to be smart and aware of how we are moving forward in this economic crisis.

Below I am going to dig into my thoughts around how to set yourself up for success during this pandemic.

Money: Positive Income Flow

Let me start by saying, every penny counts, and if anything, it counts more than ever right now. With millions of people getting laid off daily, you want to make sure you have some cash (that you can physically touch) saved up for a rainy day. Some may call this an emergency fund, savings account, or money they keep in their home. It is crucial to get prepared for the long run, with the rate of unemployment being at the highest its ever been (6million +).

Basically, what I'm saying is SAVE as much as you can!

If you are still working as usual through the new COVID-19 Shelter in Place, then I like to consider this time a head start to check off an essential item on your list -what better time to have savings, when

everything is locked down. Most people are saving on not going out since restaurants, clubs, bars, theaters, and malls are close. Take this time to focus on the four walls, which are Housing, Food, Utilities, and Transportation. I like to add one more wall, SAFTEY. None of us know how long this pandemic will last and affect our finances.

Anybody who qualifies for the stimulus check can track and update their banking information for a direct deposit here. You can also e-file your 2018 and 2019 taxes here.

My suggestion for those who are unemployed or having financial hardship is to save as much of your stimulus money for your five walls. Currently, this is the time to cut back on Wants and focus on Needs.

My heart goes out to those who are financially affected by this pandemic.

I know people are also into investing right (stocks, retirement, etc.) now. I think that is 100% awesome if your able to do so, but I won't get too much into that topic this time around since I want to stress the importance of savings. The first rule always PAY YOURSELF 10%. I am still learning myself what this means, but at the end of the day, you pay all your bills to survive, but most times, we forget to pay ourselves for all the work we put in daily for somebody else. I consider this money that can be used for personal wants. At this current time, I am still paying myself 10% with the intention of not touching it and adding to my savings. As many of you may know from my Instagram stories, I am investing in myself by taking a course called Financial Peace University, which was started by Dave Ramsey. He is now my biggest mentor via the web, and I am currently spending a lot of time learning his was of thinking and becoming debt-free and wealthy.

I'll be sharing a more detailed post just on the Financial program and how I am paying my debt off soon. Dave Ramsey shared something fundamental on his Instagram Monday morning. You may not understand some of the terms, but for the most part, he is stressing the IMPORTANCE of stacking that cash.

See below:

Student Loans, Car Insurance, and Utility Bills are working with people:

Did you know that Federal Loans are currently charging a 0% interest rate up until September 30th, 2020? I am someone who has been paying back student loans for what feels like my entire life. Now is a great time, too, of course, keep paying your minimum, but if you have more positive cash flow, it's a great time to spend more on your remaining balance. Some car Insurance companies (State Farm started it) have started giving discounts off monthly bills due to the decrease in driving. Call your car insurance to see if any programs or refunds are available to you during this time. Utility bills: PG&E is currently working with those who've been affected by COVID. Most other utility companies such as cable, phone bill, internet, and water companies have programs that can help you with your monthly payments. You have to do the research, but the most straightforward way to find out is by visiting their websites/ calling their customer service department.

Debt:

Keep paying the minimums on all your debt if you can afford it. As I mentioned earlier, this is a great time to pay a little bit more if you're able to. I like to look at it this way if I can pay the bill twice the minimum, then that way I am covered in case anything happens to me within 4-8 weeks after I pay that debt. Also, understand this is not a time to STOP PAYING YOUR DEBT if you can afford it.

Conserve your energy, money, and peace of mind:

You may be thinking what is she talking about, well, let me start by saying, right now this is a challenging time for all of us. The fact that we all are going through something extremely crazy together. This is the first time in over a century where Americans have to follow a stay at home guideline unless it is necessary to go outside. It almost feels like we are on time out; on the other hand, it's a blessing in disguise for many others to spend time in the home doing what should be the norm but isn't due to our busy lives. Remember to put you first, and love at the top of what you do. You can't give out 100% of yourself without giving it to yourself first. Take a break if you need it. Give yourself the attention you need. Do what feels right for you. Listen to that gut feeling, and don't be hard on yourself. It is all for your well being. Remember, It is not a sprint, its a Marathon! Until next time, With Love- Keren