Your Money and How to Manage During the Coronavirus Crisis

Tips to keep more money in your pocket to alleviate fear, anxiety and stress

Update: If you’re a Gig economy worker, small business owner, work for hire, self-employed, etc. You are eligible for a payroll protection loan. $350B was allocated to keep small businesses employed. Check to see if you’re eligible

Not only is the world in a health crisis (Wash Your Hands!) we are also in a financial crisis. Chances are you or someone you know is directly impacted by the COVID-19 pandemic either physically with compromised health or financially through a lay-off or a reduction in pay.

With the coronavirus expected to worsen (Wash Your Hands!) people are worrying how they will survive. Freelancers and hourly wage workers who’s schedules are often flexible and temporary, are being hit the hardest. This includes writers, graphic designers, web developers, restaurant workers, Uber, Lyft and DoorDash drivers and handy-men/women working through Taskrabbit who’s job is the main source of income. It is how they provide for themselves, their children and families each and every day. To combat the virus, state and federal governments are enforcing social distancing and stay-at-home orders the result of which are slashed wages for our hourly and gig economy workers.

According to a recent study, nearly 80% of people living in the United States live paycheck to paycheck and what this actually means is that they only have enough money to cover their bills and basic necessities until their next paycheck comes along. Only 1 in 4 Americans have enough money saved to cover an emergency event, which during a global pandemic heightens the level of fear, anxiety and financial stress.

If this is you, here are a few tips to help alleviate your financial worries during this pandemic:

1. Get your tax refund Although the filing date has been pushed back to July 15th, if you file now you will receive your payout if you are owed on the regular cycle.
2. File for unemployment Until the government finalizes the stimulus package, check out your state’s unemployment insurance program for a potential increase in benefits.
3. Call your utility, cell phone and credit card companies and ask them to delay or suspend your payments. Several cell phone providers are already waiving overage fees.
4. Call your bank and ask them to waive any fees you may have incurred.
5. Pause your federal student loans and explain how your financial situation has changed. The US Department of Education announced they will suspend payments for up to 60 days, but this isn’t automatic so you have to call them up.
6. Stop contributions to your 401k and investment accounts temporarily to build your safety net.
7. Create a budget Use the Kakebo app to help you avoid overspending, so that you always have enough money for things that are important to you.
8. Review recurring and discretionary expenses and cancel unused subscriptions and memberships (gym, streaming services, etc.).
9. Don’t sell your investments Markets surge and plunge during crisis. Financial professionals cannot predict the markets and neither can you.
10. Don’t overbuy items and only buy your necessities Consider buying generic as a great way to save money.

With the coronavirus intensifying, it’s important we try to remain calm and focus on positive control. There is a lot of uncertainty surrounding us but we will get through this by protecting ourselves and preventing the spread to others. Please wash your hands and follow the guidelines published by the Center for Disease Control and Prevention.

Conquer your finances with Kakebo. Now available for download in the AppStore and Google Play.

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