Written By: Mrs. Aquana Raffington, CEO of TLA Consulting Group INC., Founder & President of EASE International, Author, Public Speaker.
COVID-19 seems to be affecting the underserved community the most, and from the looks of things, it is now constructing a new sense of normal. Currently, unemployment is at its highest peak in the history of the US. Job security is becoming something that seems foreign to many and unattainable to most. Anxiety, stress, and uncertainty about personal finances are a stark reality for the vast majority of people.
Unfortunately, financial literacy is a tool that many of us didn’t have the privilege of being taught. “Rob Peter to pay Paul” is saying I was all too familiar with growing up. Another usual way of budgeting was to use all your earnings, pay the bill that you deemed to be most important while neglecting all the other household financial responsibilities.
As a child, I remember thinking that these financial methods of survival were backward and were making things worse. “So-o-o, we have lights and no heat? Aren’t you still going to owe Peter?” There is no way that it was the lack of finances that kept us struggling. I am convinced that it was indeed the lack of financial literacy, strategizing, and budgeting that kept us suffering the most.
Regardless of our background, there is always the opportunity to grow. There is still a chance to incorporate new and innovative behaviors into our lifestyles. The current economic upheavals are now forcing us to choose survival over comfort and essentials over luxury.
Keep in mind that we cannot obtain financial stability overnight. However, we can learn and develop financial strategies from a base of accurate knowledge and a determination to win with finances. Remember, if you always did what you’ve always done, then you will always get what you always got!
Below I share my “Top Tips” to survive through this time of uncertainty while maintaining good financial health in this pandemic.
- Arrange/Organize your Financial Obligations
Begin by prioritizing a list of all your financial obligations, be sure to include everything; groceries, personal and household items, etc. Separate personal commitments like loans from family and friends. Try not to let this step overwhelm you. It is normal to feel like financially things are just going to get worse. But rest assured that despite the current circumstances, there is a way to navigate your financial journey with confidence.
Next, record the total amount due NOT the amount owed near each itemized bill. Group grocery, personal, and household items together. Calculate them by need and family size. For example; if you have a family of four the average cost to feed each member weekly is around $$$ (take something from here – https://pocketsense.com/average-food-budget-family-four-3469.html
Add in about a $50 monthly average for personal and household items.
- Budget
Budgeting will help you to manage your financial obligations better. Write down every source of income that you have currently – not what was or what may be. Let me explain – if you are working at a paying job, receiving a monthly pension, weekly unemployment compensation, section 8 assistance, food stamps, etc. these are considered your current stable financial resources. Under no circumstances should you compare what you have coming in, against what is due unless you want to invite anxiety into your situation.
Once you have a clear picture of all your financial commitments and your current financial resources, you can take the first step in ‘financial proactivity.’ The beauty of this phase is that you are now in a position to be proactive, not reactive, and this will lead to smarter financial decisions.
Categorize your expenses by what is essential to your survival at this current time. Establish financial boundaries.
Essential Expenses
Lights
Gas
Heat/Air
Food
Internet
Basic Phone
Non-Essential Expenses
Cable
Eating Out/Ordering In
Paid Lawn Service
Childcare (unless you are an essential worker)
Priority Bills [bills that if not paid, has the potential to cause a tangible hardship]
Medications
Food
Lights
Water
Gas
Secondary Bills [bills that, if not paid, can affect you in the long run. These creditors are most likely to work with you]
Rent
Mortgage
Auto Loans
Insurance
NB. Eviction and Foreclosure will be on hold during COVID-19 Lockdown, but that will come to an end eventually. In either case, please contact your landlord or mortgage lender to make arrangements to ensure your peace of mind.
Lesser Bills [are bills that, if not paid, will affect your credit after 30 days of not paid or will cause annoying calls from creditors. These creditors are more than likely to defer payment for 30-90 days]
Revolving accounts such as credit cards
Charge cards
Furniture bills
Jewelry
- Communicate
Communication is the key that unlocks the doors to a stress-free existence. Without it, we would undoubtedly be handicapped in this day and time. The impact of quarantine and isolation has obstructed our ordinary dealing with each other. In actuality, it has slowed things down, giving us nothing but time to become hands-on with the things to which we usually don’t pay sufficient attention.
Although most things are computer operated, it still takes a person to program the information that is on the computer. Use this time to contact all the companies/creditors to which you have a financial commitment. Inquire about the assistance being offered during the COVID 19 pandemic. Rest assured, you will be treated with understanding in most instances because the people you owe are struggling too; things are uncertain for everyone in the world right now.
Most Creditors are committed to assisting consumers who are facing any disruption arising from COVID-19.
Companies that are helping include but are not limited to:
- Mortgage companies, car financers, etc.
- Leasing Agencies and Landlords
- Utility companies
- Insurance companies
- Credit card companies
Be mindful that Call volumes may be high. Persevere. Once you make it through the maze of automated prompts and transfers, you will likely walk away with information about the resources available to you. While taking advantage of forbearance and suspended payment options may be appealing, be cautious of the future commitments that may come with the assistance offered to you.
If the options offered to you will leave you worse off, and you can afford to make minimum payments, at the very least, do so. If the opportunities provided to you will not allow you to pay something on all of your necessary bills, use the deferment options. That is, light and gas are necessities, but the cable is not. If the pandemic has immensely impacted your income, I advise that you contact every creditor before making any financial commitment.
When it comes to reaching out to family and friends to whom you owe money, be humble and do not allow pride to stop you from letting them know that you haven’t forgotten that you owe them. If speaking to them will cause a heated conversation, at the least, send a text or an email just letting them know that you need more time, etc.
- Don’t be Afraid to Ask for Help
We are a country that categorizes people by wealth, religion, and status. However, Covid-19 has impacted the wealthy and underprivileged alike. Individuals who once had the security of their jobs, pensions, and savings are now struggling to make ends meet like the best of us. It is genuinely humbling. The positive thing about this pandemic is that it has provided an opportunity for resources and aid to reach people who typically wouldn’t be eligible. Restrictions to keep the average person receiving assistance are no more. Unemployment is being provided even to gig workers. Food stamps, medical, low-interest rate loans, disaster relief grants, and more are available and worth investigating. By calling 21, a list of local organizations is available to help everyone.
- Entertain New Possibilities
We have the perfect climate to entertain new possibilities concerning the financial health and future wealth-being of our families. With an enforced pause in the pace of our daily lives and the struggle to balance work outside the home and family responsibilities, we all have a perfect opportunity due to the pandemic lockdown to rethink and perhaps reboot our dreams of financial independence. It’s time to revisit and or explore new pastures.
- Have you ever thought about being an Entrepreneur/Self-Employed? Today is an excellent time to become informed, educated, and up-skilled as you explore the possibilities. Rather than investing in something with deferred, long-term rewards, you could consider investing in something that will help you stay afloat during these financially challenging times and safeguard against future economic downturns in society.
- How about working from home? Remote virtual operations have never been so available, professional, and acceptable than they are right now. Do you have a skill, expertise, or hobby that you could utilize from home to earn added income? Turn your experience into profit. You never know where it could lead.
Finally, I would counsel that you take life one day at a time. Be fiscally responsible for all things. Don’t entertain any new financial commitments. Do not allow circumstances to overwhelm you to the point that you make irrational investments. Forget extravagant indulgences. Err on the side of caution. Stay safe and be blessed.
