As we’ve all seen over the last few weeks, the financial impact of COVID-19 has already been significant. While we certainly could look at the global or national perspective, today I want to focus on how COVID-19 might be impacting you personally and particularly how you can get some help. Please refer this blog post to anyone you know who might need financial relief.
Here are some areas you might be concerned about:
· Unemployment: If you’ve been laid off, you’re not alone. Nearly 3.3 million Americans applied for unemployment insurance during one week in March. Take the steps outlined in this Nerdwallet article to help get your finances in order as you seek to access assistance. Many states have expanded opportunities to qualify for unemployment, so even if you wouldn’t have qualified in the past you may qualify now.
Tip: If you have an emergency fund — even a small one — now is the time to use it. This is the situation you’ve saved for. Relying on credit cards as well? Here are some tips for managing credit cards in a crisis.
· Mindset: Non-stop talk of hoarding, panic buying, stock market drops, and unemployment can shift anyone from feeling financially confident to financially anxious. If you’re feeling this way, I invite you to take a deep breath. It’s easy to make the damage bigger in your mind than it actually is. Use my financial audit to get a sense of where you are today and begin making a plan.
Tip: Another way to shift your mindset is to get some perspective. Yes, pay attention to trusted news sources, but set limits. Spend the rest of the time caring for yourself and your family: take a walk outside, try a loving-kindness meditation, make your favorite sweet treat, have an “date night in” with your partner.
· Stock Market: With news of the stock market plummeting and rumors of recession, you may be tempted to check on your investment accounts. Resist! Remember, you’re playing the long-game with your retirement savings. The stock market is a roller coaster ride and you have ample time for your money to move up, down, and all around before it reaches its final destination. Instead of focusing on the drop, learn more about how the stock market has recovered in the past.
Tip: Still feeling anxious? You may be taking more risk than you’re comfortable with. Talk to your investment company or a financial planner to see if your portfolio needs some adjustment. Now may not be the best time to move your money, but you’ll have a better sense of what needs to change when things settle down.
· Higher Household Bills: If you’re already seeing higher than normal bills for groceries, utilities, and streaming services, you might be feeling anxious about your budget. You may need to do some recalibration for this extraordinary time. Since you’re likely spending less money on things like entertainment, dining out, and travel, could you allocate some of that money to cover your expenses?
Tip: You may have had one big grocery store trip (like many of us did) stocking up for two weeks’ worth of less-perishable items just in case you are quarantined. Remember: you don’t need to shop like this every time. Slowly use and replenish your stock.
· Loan Payments: Struggling to keep up with your student loan, mortgage, auto, credit card, or other loan payment? Begin by contacting your lender to see what options might be available to you. They may offer you forbearance (a break from making payments while interest accrues) or lower your interest rate or monthly payment. There are many options for federal student loan relief: Effective March 13, the government is offering an automatic six-month forbearance to all federal loan borrowers, automatically waiving interest on federally held student loans for six months, and stopping all collection activities on federal loans in default. Have private loans? Reach out to your loan servicer directly.
Tip: If you need financial relief, take advantage of these programs. However, if you don’t need it, think twice. Just because you can take advantage of these programs doesn’t mean you should. If you’re able to continue making payments at your normal rate, keep going. In most cases, you’ll still be accruing interest during forbearance, so you’ll be paying for this break later on.
· Tax Payments: The IRS has moved Tax Day from April 15 to July 15. This is the date by which you’ll need to file and pay your taxes. Need more time to pay? You may be able to file for an extension; just make sure you do it by the July 15 deadline.
Tip: Some — but not all! — states have moved their tax deadlines to July 15 as well. Check with your state’s department of revenue to see if you live in one of them. If not, you’ll still need to file your state tax returns by April 15. This article from Turbo Tax has great up-to-date information on each state as well as the federal guidelines.
Need to get the money conversation started with your spouse? In response to the ongoing coronavirus pandemic, I’m offering free access to my favorite money dates from my Date Night Club. I hope these casual, insightful, and even fun series of questions and activities can help you and your partner get on the same page about where you are and where you want to be. I guarantee you it will be an hour well-spent.