She Strengthens

Navigating Financial Uncertainty During the Pandemic

The COVID-19 pandemic has brought about a global health crisis, but it’s also having a devastating impact on the economy. With a recession looming, people everywhere are wondering how they’ll fare financially. If you’ve lost your job due to the pandemic, you may be eligible for unemployment benefits, and many states are implementing relief measures for workers whose jobs are on hold.

Seeking Immediate Relief

To find out what’s available, check your state’s employment department. The Centers for Disease Control and Prevention have also set up a coronavirus relief hub. Additionally, members of the Financial Planning Association and the XY Planning Network are offering pro-bono financial guidance to underserved households.

Assessing Your Financial Situation

It’s essential to take stock of your financial situation and prioritize your immediate needs. Bobbi Rebell, a Certified Financial Planner and Personal Finance Expert at Tally, advises, “How much is in your emergency fund? What are your immediate financial obligations? If your emergency fund cannot handle them, where can you get some flexibility?” Focus on basic living necessities like food and shelter, and then consider your other bills and expenses.

Communicating with Landlords and Lenders

If you’re struggling to pay rent, talk to your landlord and explain your situation. Many states are barring landlords from evicting tenants during the pandemic, and the Department of Housing and Urban Development is suspending foreclosures and evictions through the end of April. Similarly, if you own a home and can’t afford your mortgage payment, contact your lender. Many are offering flexible emergency policies, such as payment deferment or fee waivers.

Adjusting Your Savings Strategy

In times of uncertainty, it’s tempting to cut back on savings, but it’s essential to weigh your options carefully. While traditional advice suggests staying the course with retirement savings, it may be necessary to prioritize cash on hand. Meghan Murphy, Vice President at Fidelity Investments, notes, “If you have to reduce your retirement savings, make sure you are still saving enough to take advantage of any matching contributions your employer may offer.”

Managing Debt and Bills

If you’re struggling to pay debt or bills, communicate with your creditors and work out a solution. Many companies are offering hardship options, such as payment plans or lower interest rates. Don’t ignore your debts; instead, negotiate a new repayment plan. Utility companies are also suspending shut-offs and waiving late fees, so reach out to your providers to discuss your options.

Staying Informed

The pandemic is a fluid situation, and new relief options are emerging daily. Stay updated on the latest developments, and take advantage of resources like the New York Times’ financial relief hub. Remember, this too shall pass, and with careful planning and communication, you can navigate these uncertain times.