As the Government Stimulus Checks start hitting people's accounts it's important to do the right things with this money.
The "right thing" though will be very personal and vary from person to person, depending on your life circumstances.
Remember if you have family members(adult kids, extended relatives)who will have issues with paying their bills due to losing work and will ask you for money, you need to make sure YOU are ok first before extending help to them. And if you do loan money to anyone, remember to, at least in your own mind, think of it as a gift rather than as a loan you will expect to be repaid, because in all probability they won't repay it. Don't let money come between you and your loved ones.
I made this simple little flowchart that may help folks see how they may want to handle their Stimulus Check.
I don't play a financial planner on the internet or in real life. This is just something to get y'all to do some critical thinking.
As for anyone who lost their job--
If you qualify for unemployment please apply for it as soon as you can. I know each state is different on how much/how long they will take so do that as soon as possible.
And in the mean time if you can reduce any expenses do so...
* Ask your landlord if you rent or your lender if you have a mortgage, your car lender, your credit card provider/lender about any forebearances they can provide you on your debts.
* Some car insurance companies are issuing partial refunds or adjustments on your premiums. Pick up the phone as ask them for a reduction if you are no longer commuting to work in your car.
* Ditto for your utility companies. I know they can't shut your heat off during this pandemic but find out about any programs they have that might help you and see if they will reduce or forgive any interest on late payments you will have due to this crisis.
* Go to a food bank even if you don't think you need to. The less you spend on things you can get help with means your money will go further to keep your head above water.
Does anyone have any other thoughts on how to get through this financial crises if you are experiencing a job loss?
If you are lucky and don't rely on a job for your financial well being, what will you do with your stimulus check if you are due one?
Sluggy
The "right thing" though will be very personal and vary from person to person, depending on your life circumstances.
Remember if you have family members(adult kids, extended relatives)who will have issues with paying their bills due to losing work and will ask you for money, you need to make sure YOU are ok first before extending help to them. And if you do loan money to anyone, remember to, at least in your own mind, think of it as a gift rather than as a loan you will expect to be repaid, because in all probability they won't repay it. Don't let money come between you and your loved ones.
I made this simple little flowchart that may help folks see how they may want to handle their Stimulus Check.
I don't play a financial planner on the internet or in real life. This is just something to get y'all to do some critical thinking.
If you qualify for unemployment please apply for it as soon as you can. I know each state is different on how much/how long they will take so do that as soon as possible.
And in the mean time if you can reduce any expenses do so...
* Ask your landlord if you rent or your lender if you have a mortgage, your car lender, your credit card provider/lender about any forebearances they can provide you on your debts.
* Some car insurance companies are issuing partial refunds or adjustments on your premiums. Pick up the phone as ask them for a reduction if you are no longer commuting to work in your car.
* Ditto for your utility companies. I know they can't shut your heat off during this pandemic but find out about any programs they have that might help you and see if they will reduce or forgive any interest on late payments you will have due to this crisis.
* Go to a food bank even if you don't think you need to. The less you spend on things you can get help with means your money will go further to keep your head above water.
Does anyone have any other thoughts on how to get through this financial crises if you are experiencing a job loss?
If you are lucky and don't rely on a job for your financial well being, what will you do with your stimulus check if you are due one?
Sluggy
Suze Orman has some unique financial advice for this crisis, advice she'd never give during normal times. She doesn't recommend you pay off debt right now, because no one knows what is going to happen. Save the stimulus $$ as your emergency fund. Use your credit cards, see if you can get a higher credit limit, only pay the minimum balance. If you can get forbearance from paying student loan, mortgage or any bills for 3 months do it. Contact all your creditors and ask if they can work with you. Save that money for your emergency fund. Do not use your retirement fund to pay off debt. If you go bankrupt, that retirement money is exempt which means you can keep it. But if you spend it, then go bankrupt, you have nothing. The only expenses you should spend on now are NEEDS, not wants.She had a webinar today, and was on the Today Show a few weeks ago. She explains it better. And as Dave Ramsey says, get another job or 6. Grocery stores are hiring a lot of people now.
ReplyDeleteSuze Orman also has a podcast "Women and Money"
ReplyDeleteThe advice I heard from a govt person and rejected was to go out and spend the money so the economy will be helped. The person said not to save it or pay bills. Well, I thought that was foolish advice.
ReplyDeleteI just want to further implore people who don't think they need the food bank to please reconsider. Hindsight is 20/20, my husband and I were talking about a past financial nightmare and one thing we did not do until 6 months in was go to the food bank. Think of it this way if you get some items like side dishes, veggies, and peanut butter it makes it so much easier to get meat and cheese milk eggs and bread at the store. It helps a lot and if you get items you don't need share them.
ReplyDeleteI plan to give son some and then I actually plan to use to rest to stimulate the economy by buying from my local small business people.
ReplyDeleteThe single smartest sentence in your entire post is about looking at temporary money given as a gift rather than a loan. I know we are going to have to help Son3, because his entire financial world is gone right now. So it will be given freely.
ReplyDeleteGreat flow chart Slugs. I think more people will hang onto this money then spend it unless they have to.
ReplyDeleteThought about applying it to the mortgage but we’ll keep it in savings to be safe. Just over 4 years left at the current payment so it was tempting to cut that down.
ReplyDeleteJen G.
I'm waiting to see if/when my 2 kids get theirs. Right now the IRS tool says they haven't determined their eligibility which is crap because they've both worked since they were 16 and have filed income taxes and have it direct deposited. Anyway, we may give to them if they need it, or don't receive it, and if not we will donate it to our state's food bank and my favorite animal shelter that has a pet food bank.
ReplyDelete