During a crisis, particularly a pandemic, our focus tends to be on the physical health and well-being of ourselves and our families. Financial health is equally important. Financial services professionals, Mark Elder and Trevor Houston led this insightful discussion, and we’ve included the key takeaways below.
HIGH PROFILE’S KEY TAKEAWAYS:
- Develop a Plan:
- Keep your family updated. They are your primary support network, so allow for open lines of communication with them. Keep them in the loop.
- Stay positive. When you lose a job, you may experience stages of grief. Even though there is a lot you can’t control, there are two things you can control: your attitude and activity! Focus on what you can control.
- Set goals for yourself. Consider professional development during this time. Work towards earning a degree or a certification, practice interviewing and attend networking events/workshops. Future employers want to see that you are making good use of your time. Track your activities and control your calendar.
- Analyze your Severance package/Unemployment Insurance:
- Review your severance package.
- Apply for unemployment through Texas Workforce Commission/1-800-939-6631.
- Budgeting is Critical:
- Develop a budget and it will save you money in the long term. A budget will help you limit your exposure and reduce your expenses where you can. Microsoft Excel offers easy budget tools to use.
- Consider decluttering, selling or donating items in your house that you don’t need.
- Look at the CARES act to determine your benefits:
- that includes tax deadline extensions, unemployment stimulus, help to pay off student loans or suspend payments, etc.
- Manage Your Debt:
- Analyze your debt. Pay down existing credit cards by calling your creditors and communicating with them about your situation. They may be willing to help you reduce your debt. You never know how long your job search will be and you don’t want to ruin your credit.
- Look at refinancing options since interest rates are very low right now.
- Research Potential Gap Jobs:
- You may need additional income to help you with your resources. Consider doing temporary work.
- Evaluate Your Retirement Account Provisions:
- During this COVID-19 crisis distributions have been expanded, required minimum distributions have been waived. Up to 100k can be taken out of your retirement plan funds without any penalty and you have up to three years to pay it back.
- There are hidden costs of liquidating or making early withdrawals in your account. You could be sacrificing future growth if you take it out early. Consider a rollover or account consolidation. Beware of taxes and penalties. Consult with a financial planner when needed.
Mark Elder and Trevor Houston are financial services professionals and hosts of the Who Ya Know Radio Show. Connect with Mark and Trevor on Linkedin!