WHEN FEAR RUNS HIGH, THE NEED FOR COURAGE MUST RUN HIGHER!
THANK YOU TO ALL THE PEOPLE KEEPING AMERICA GOING!
A special thank you to all the men and women in health services who are staying on the job to protect us. The men and women staffing and restocking grocery stories, drug stores and convenience stores. And all the others going out every day to keep our economy going as close to normal as possible. Thank you to those working in police, fire, EMTs, logistics, supermarkets, the cleaning sector, education, childcare, public transport and many other fields. You are carrying us through this extremely difficult time and without you, we could not survive! We realize all too well how essential you are for helping prevent our society from coming to a complete standstill.
A personal thank you to my family members on the health care front line, taking care of patients each day: Dr Candace Lawson, Dr Avis Carr, Dr. Vina Issac, Cyrene Powers. Thank you so much.
A CHILDHOOD MEMORY
As a child when we had three television channels, {yes three and we survived) they would stop broadcasting at midnight. Each channel played the same song that maybe we all need to listen to now.
WITNEY HOUSTON – SINGING THE NATIONAL ATHEM
LOST JOBS
I recall the first time I felt fear I would not be able to pay my bills. I had just been called into my boss’s office and laid off of my first job after college. When I asked how much time I had (praying for a couple of weeks pay) I kid you not, Bruce. (yes, I remember his name) looked at his watch and said about two hours. This job had lasted about one year, and I had purchased my first home. A good decision as long as I had a JOB! I was very afraid.
This was the era when you had to search the Sunday papers for job listings. Then you had to type (with a typewriter you may have seen in museums or the movies) a cover letter and mail your resume for (the good old U.S. Post Office) each job you applied for. I remember sending out over 200 paper cover letters and resumes. Today you can send that many out in a day!
I was afraid, worried, ashamed desperately in need of toilet paper (sorry could not resist). At this time I thought on a scale of 1-5 {Where five-5.0 is RED ALERT – ALL HANDS BATTLE STATIONS and One-1.0 equated to I did not get a raise this year after all my great work} this was a five-5.0 PLUS! Young and dumb what can I say!
This coronavirus pandemic is definitely a FIVE – 5.0 PLUS! To date, 18 percent of Americans have someone in their household that has been laid off or had hours reduced due to the coronavirus outbreak. The predictions are unemployment will quickly climb from 3.5 percent to 20 percent and tens of millions of Americans will be out of work and without a paycheck. Today~80% of Americans are living paycheck to pay check.
Those above unemployment numbers may get worse as the virus spreads and governments take measures to limit person-to-person contact. We have never as a nation, experienced the combined fears of illness, death, job loss, financial ruin. The way we deal with the fear is to prioritize the actions that will help ourselves.
SOME KEY ACTIONS I HAVE LEARNED FROM MY OWN WORK CRISIS
BREATHE, CRY IF YOU DESIRE – {I HAVE PLENTY OF TIMES}!
It is ok to mourn the loss of work or income. Call a friend or loved one and let them know what happened. You are far from alone, but the next day put the mourning and fear aside and start your new job of taking care of self and those you love!
IMMEDIATELY APPLY FOR UNEMPLOYMENT
Immediately, apply for unemployment benefits, by visiting your state’s unemployment website and apply even if you do not believe you qualify. The States are expanding the program. The state of New York waived the seven (7) day waiting period for unemployment insurance benefits for people who are out of work due to coronavirus, and other states will follow New York’s lead.
FIND TEMPORARY WORK
When I lost my first job, I fortunately had taken night classes for my real estate license and immediately applied for a real estate agent job. It kept me out of the house feeling sorry for myself and was a great networking opportunity. And I actually made a sale!
Today, Amazon, Walmart, Grocery Stores, delivery companies and MORE are hiring. There are also online market research companies that pay people to take surveys. With a quick google search, you can find sites that offer these services—but be mindful to only sign up for reputable sites.
LET YOUR FRIENDS, FAMILY AND NETWORK KNOW YOU LOST YOUR JOB
Lose the pride. Your Mom Dad and ANYONE that cares about you will help as much as they can and NOT lose respect for you. Your network, neighbors or fellow church members may be able to help you find work. It does not have to be uncomfortable letting your family and network know that you are unemployed and looking for a job. In today’s times, many if not the majority of your family and friends have been in your shoes and will be supportive. In my case, most of my job opportunities came through my network, NOT job listings.
YOU ALWAYS WANTED TO OWN YOUR OWN COMPANY – NOW IS THE TIME
Some of you, like my nephew, Tony, are born entrepreneurs. It has been fear of losing that paycheck that has kept you tied to the worse boss in the world! That tie was severed! If you have a great idea, a great product, simultaneous to looking for immediate income, work on that new business. Steve Jobs said in retrospect, the best thing to happen to him was getting fired by Apple! And we all know the success story he went on to create and leave a going strong legacy.
GET IN CONTACTS WITH THOSE YOU OWE
Now is NOT the time to hide from the companies you owe money. Start by contacting your biggest monthly lenders, which are typically mortgage and car payments. They know we have a global and national crisis so call and advise them of your situation. These are very unusual circumstances and many companies will try and work with you. Some banks are allowing distressed consumers to skip a payment without being charged late fees or being considered delinquent. Many utility companies have suspended shutoffs over nonpayment. Credit card companies are offering relief to customers in the form of hardship programs and other payment options. Contact the lenders explain your circumstances and ask if they have any assistance programs you can apply for. Many will be willing to work with you on a financial solution, until our nation and you get back on your feet.
CALL YOUR LANDLORD
If you know you will be unable to pay your rent on time, contact your landlord immediately and tell them your situation and see if they are willing and able to give you an extension. It’s not a good time to evict tenants so landlords may be more lenient during this recession. If they are unwilling/unable (remember they may have a mortgae) to give you an extension, read over your lease and contact free legal services in your city or state.
YOU STILL NEED HEALTH INSURANCE
If you received health insurance from your previous employer check and see if they will allow for healthcare continuation for the next one to three months. If that is not an option look into COBRA coverage, which is basically an employer-sponsored health insurance. It will be a shock when you see the price but can save you money in the long run if you do end up needing emergency healthcare. You may also be entitled to buy affordable health insurance through the Marketplace. Also check and see if you are eligible for free or low-cost coverage through Medicaid.
CREATE A REALISTIC BUDGET
Once you have taken financial inventory of what is available to you through your previous employer, unemployment benefits, and health insurance coverage, let’s get to work and create a new honest budget. Make a budget for only your necessities, think housing, groceries or anything that’s REQUIRED for survival at this point. Evaluate all other items that are not a necessity and eliminate as many as possible.
LAST RESORT- WITHDRAWING FROM YOUR RETIREMENT ACCOUNTS
If you’re struggling to make ends meet and your savings account is depleted, you may be eligible to take out money from your Roth IRA account penalty free. A Roth IRA contributor has the ability to take contributions (Not Earnings) out at any time. It is recommended you maintain six months emergency savings. If you contribute the maximum of $6,000 per year to a ROTH, for ten years, your contributions total $60,000. Those funds can be withdrawn in case of an emergency or family need. As your ROTH contributions are made with After Tax dollars, you owe zero taxes on the funds you withdraw. You can withdraw earnings but will pay penalties and taxes.
https://wealthbuildingpowers.com/2020/01/13/the-roth-ira-is-so-good-the-feds-made-a-mistake/
If you have a 401(k) you may be eligible take a hardship withdrawal, however this withdrawal would be subject to a 10% penalty. Withdrawing from your retirement fund is, of course, a last resort option, but sometimes unavoidable in times like these. In the recovery bill that Congress is working on they may eliminate penalties for some withdrawals from retirement accounts.
MENTAL HEALTH
Suicide is NOT an option. When things get bad call someone for help. You do not have to fight this battle alone. If you find yourself unable to get through everyday life after your job loss, reach out to a mental health professional. Through a quick google search you can find pro-bono or sliding scale therapists in your area who may be able to work within your budget. Getting your mental health in check is the most important thing you could do for yourself during this stressful time.
At the end of the day, just remember to be kind to yourself. While it Is an incredibly difficult time, put your mental health first.
My list of worries is simple: Family; Health; Healing; Our Country. I remain confidant together we will get through this. Please take care of yourselves and your loved ones.
CONTINUED FROM PREVIOUS CORONAVIRUS BLOGS:
HOW TO MANAGE CORONAVIRUS HEALTH AND INVESTMENT RISK
WHEN THE U. S. HAS A COUGH THE REST OF THE WORLD CATCHES A COLD – WHAT HAPPENS WHEN CHINA HAS A CORONAVIRUS?
PANICKING WILL NOT ERADICATE THE CORONAVIRUS PROBLEMS
https://wealthbuildingpowers.com/2020/03/16/panicking-will-not-eradicate-the-coronavirus-problems/
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached and mentored by strong women and men in both my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.
However, I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog, as recommendations for your personal situation. For individual finance advice please seek your own licensed CPA or fiduciary financial advisors.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
