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Day 12: Recession-Proof Your Finances

Mar 27th, 2020 • Jasmin Snyder

I want to start out this post by saying how sorry I am you’re going through this too. The word grief keeps coming to mind as we face new challenges each day. Take a moment and grieve for what’s going on and what’s to come. And when you’re ready, let’s take a step together and see what Pete’s action steps are today.

Rate Your Stability Level

What best describes your current reality?

  1. Little to no stability – unemployed or reduced wages with no savings
  2. On the edge – employed with little to no savings or unemployed where unemployment matches your previous salary
  3. Stable – employed and have a healthy savings account

You’re somewhere in here and it’s likely you may have moved from one stage to another recently. You have to face the reality of your situation. Here are some tips for handling your big upcoming obligations based on your stage.

1. No Stability

You have to cover your big expenses like mortgage/rent, utilities, debt, food, etc. but if you have no stability that’s nearly impossible. The first step you have to take is CALL EVERYONE. You have to get ahead of your bills. Everyone is aware of what’s going on so hopefully by calling you can buy yourself some time until the stimulus check comes in. Another new feature of the stimulus bill is that federally backed mortgages have the option of being deferred for up to a year. This is FHA mortgages, VA mortgages, etc. If you have a private mortgage, call anyway. Many private loan groups are creating deferral programs as well. You’re in survival mode but burying your head in the sand will not help. Not now. You have to take action. Making those calls will really suck, but you have to do it.

2. On the Edge

If you’re on the edge not sure if your job will survive, you must shovel away cash now. You also can be more focused on not ruining your credit score. Make calls to all your obligations you won’t be able to make well in advance to work out a plan. You are on the edge which means you may have issues and you may not, but you must act as though you will. This will help you build reserves now.

3. Stable

We would be remiss to not address this group. You may feel secure in your job and have healthy savings. Great! No need to be ashamed of this, yet no one is invincible. If you end up with a stimulus check keep it in savings until the economy reopens and then you can funnel it into your local community.

There is no one right path for every person, even these categories are broad. This is why we built Hey Money, to help you build a relationship with a financial expert that will guide you for your exact situation. They will listen, get the full story, fill you in on all the possible options, and help you come up with an action plan right now. Hey Money is only $19.99 a month but for the length of this program we are offering a 10% discount with code ‘cheese’. You cannot get this kind of personal financial help for that price ANYWHERE (trust us, we’ve googled it).

These live streams are still going strong and we still have a lot of ground to cover. To catch the live broadcasts like the Hey Money Facebook page to be alerted when Pete goes live at 2:00 pm EST daily.

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