I am so grateful to have been raised by Depression Era grandparents and their children who taught me these things and it helps with resourcefulness now.
What to do if you lose your job or have a temporary shut down.
1. Apply for unemployment immediately.
2. Call all your creditors and negotiate payments, pay minimums, or get an extension.
3. You may have to repeat #2 with your landlord or mortgage lender and it may or may not work but it's worth a try.
4. Look for a job in the gig economy like delivering food or running errands for others.
5. Sell your stuff. If you have electronics, clothes, cars, etc that you don't use or can get by without for now go ahead and sell them on Marketplace, Craigslist, etc. Many people who do have money take advantage of times like this to buy things cheap. It will help you and make you realize how much you don't actually need.
6. Needs over wants. I had a trip planned to see my son when this all began and since it (Corona) hadn't spread yet I went ahead (I needed to lay eyes on him, parents get this) .We ate out a few times as planned but otherwise stayed in. I noticed at one particular outlet mall a lot of people shopping. A few folks I talked to where still planning trips or shopping. That's fine if you have the money but honestly we do, and there is no way I would be spending it on anything except needs right now.
7. Identify needs. Shelter, food (basic not fancy), you probably have enough clothes, basic transportation cost (can you extend your car payment if you have one, or your car insurance?). Gas is at an all time low but at this time unless you need to drive don't.
8. Reduce your utilities. While your home try to conserve. Close off rooms and vents you are not using. If you have wood heat use it. Only do full loads of laundry and dishes. Use up those old disposable plates for your kids birthday party. Turn off the lights. Put on a sweater or strip down if you are hot. Use fans in hot weather and bundle up and get some tea in cold weather.
9. Think. Think "How can I save money on this, on everything".
10. Make a plan for next time. It really worries me that so many folks live pay check to pay check. This is the time for starting a plan to have an emergency fund. When we come out of this, and we will, work on a plan to have three to six months worth of money in an emergency fund. At minimum get one month and hoard it like gold for times like this. I would actually tell all the Dave Ramsey fans and those in debt to have at least one month of expenses put back while you are paying off debt.
11. Don't go back to your old ways of spending after this is over. Let this be a lesson that you learn from that can impact your future for the better.
12. If you have a tax return coming in pay your bills ahead first and stock up your pantry and save your money! Put all other purchases on hold.
13. If you can pay your bills leave your retirement accounts alone and your 401K or IRA contributions. You are dollar cost averaging and buying stocks at deep discounts right now. Historically the longest it has ever taken for the market to bounce back is 3 years, 13 months is the average. Don't look at it and don't touch it unless you are starving.
Much Love and Stay Strong. You are smart and you are capable.
Love,
Courtney
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