COVID – 19 - Do some Careful Personal Accounting
The current crisis is impacting millions of hardworking and responsible Americans who suddenlyfind themselves in a financial crunch they could never have imagined only a few months ago.
• Focus on essentials: List what you spend on your mortgage or rent, utilities,phone/internet, groceries, insurance premiums, debt payments – anything you haveto pay each month. This will help you decide where you can most easily cut back for awhile
• Prioritize your debts: Debts can’t be ignored, but they can be prioritized. Once youhave your essentials covered, consider temporarily paying only the minimum onmortgage/rent, car loans, student loans, and credit cards. Be proactive, and if you’restruggling, contact creditors before they reach out to you.
• Look at your budget in light of your resources. With this information in front of your,calculate how much money you have on hand and how long you can get by. Includeyour severance; unemployment benefits; child support; and any emergency savings.
Excerpts from The Epoch Times, July 8-14, 2020 “Laid Off and Worried About Money: What to DoNext?” by Carrie Schwab-Pomerantz, a certified financial planner, president of the Charles SchwabFoundation and author of “The Charles Schwab Guide to Finances After Fifty.”