Handout Packet

Coronavirusand Your Finances

A Carebridge Seminar

Objectives

• How to assess your situation• What to do now• What to do going forward• What to do to rebuild

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What Do I Do Now?

Step 1: Slow Down

• Assess the current situation rationally.

• Identify the cash you have RIGHT NOW, and howmuch you are certain to get in the near future.

• Last paycheck, unemployment benefits, governmentsubsidies

Will I Be Okay?Step 2: Project

• Make a list of everything youspend money on.

• Add them together to get atotal.

• Can you/have you filed forunemployment benefits?

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Balancing Cash, Incomeand Expenses

Step 3: Protect.• You know what you have. You know what you need.

• If you need more than you have, it’s time to reducespending.

• Identify items to reduce or eliminate from Step 2.

• You may want to choose to ignore debt payments. *

* Call your creditors; be aware of the implications

Trimming the Outflows

Step 4: Recalculate

• Using the reduced budgetfrom Step 3, determine howlong your current moneywill last.

• Some help may be on theway if you qualify.

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Be Realistic

Step 5: Negotiate

• First with yourself:• I can live without _________and _______ but not ________.• Must haves should reallybe MUST HAVEs.

Be Honest

Step 6: Negotiate with Others

• Call your creditors.• Ask for extensions, payment holidays or reducedinterest rates.• Must haves should really be MUST HAVEs.

• Ask for help• Is there anyone you know in a position to help you?

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Recover

Step 7: Rebuild

• This will get better. Whatcan you do NOW to positionyourself such that this neverhappens again?

• Improve skills, find extrasources of income, cut bills

• Clothing*

• Of COURSE you needclothes…• Entertainment• Eating out• What is YOUR bad habit? ;-)

Non-Essential Expenses

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• Pay yourself first!• Use automatic transfers• Use payroll deduction• Take advantage of your employer’sretirement plan

How to Save

A quick and easy way to save alittle money is to toss your sparechange into a jar or piggy bank!

And Don’t Forget

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Become educated, set goals, make budgeting a priorityand get to work.

Be willing to sacrifice where able.

Maintain and revisit your budget progress weekly.

Take advantage of Carebridge budgeting resources,money management apps and other tools readilyavailable.

You Can Make It Happen!

Free Budgeting Apps to Try

Mint

PocketGuard

You Need A Budget

Wally

Goodbudget Simple

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Internal Revenue Serviceirs.gov

Dept of Labordol.gov

National Federal Credit Counselingnfcc.org

United WayUnitedway.org/local/united-states

Resources

ConfidentialServices

800-437-0911www.myliferesource.com

Contact Carebridge

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The coronavirus pandemic is impacting our nation’s health

and the economy. Many people are finding themselves

struggling financially during this unprecedented time.

While the economy is likely to improve in time, here are

some resources to help you survive in the short-term.

• Congress has passed a $2 trillion stimulus bill that will

provide financial support to individuals and companies.

The bill will provide a one-time payment of $1200 for

individuals and $2400 for couples, with $500 added for

every child. There are income caps, and the check

won’t likely reach your home until May.

• The IRS has extended the deadline for filing federal tax

returns and paying any taxes owed until July 15th. This

is automatic and doesn’t require filing for an extension.

• Health insurance providers are required to cover

preventive services related to coronavirus without cost

sharing.

• Federal student loan payments have been suspended

through September 30th with no accrual of interest.

• The Department of Housing and Urban Development is

suspending all home foreclosures and evictions until

the end of April.

• Some banks and mortgage lenders are being more

lenient or offering extensions on making payments –

check with your specific institution and ask for a grace

period. (It may take a lot of patience and several calls

to get through – keep trying.)

• Most utility companies are offering leniency and not

shutting off essential utilities during this emergency.

Check with your individual providers.

• Unemployment benefits have been extended. File with

your local state unemployment agency as soon as your

job is in jeopardy.

• Credit card companies may be able to work with you if

you can’t make the minimum payment. Call them to ask

if they are waiving late payment fees or interest

charges.

If you need help figuring out a budget and how to make

ends meet, contact the National Foundation for Credit

Counseling (nfcc.org) or contact Carebridge and ask to

speak with a money management consultant.

Copyright © 2019, Carebridge Corporation. All rights reserved

How to Lower Your Financial Stress

Money worries are among the most common sources of personal and family stress, according to Consumer Federation of America (CFA).

Living with too much of any kind of daily pressure can take an emotional and physical toll, contributing to sleepless nights, backaches or headaches or, over time, even life-threatening diseases, such as high blood pressure or heart disease.

Whether your credit card balances are soaring, or you and your partner are arguing constantly over nickels and dimes, there are things you can do to relieve financial stress.

Take a Breather The CFA suggests taking these steps to ease money-related stress:

• Focus on what you have, not on how much you’re lacking. List all your possessions, including material things, your health, and your relationships.

• Eliminate clutter in your life. Tossing out what you don’t need and organizing the rest can tidy up your emotions. So, can meditating or sharing your feelings with a nonjudgmental person.

• Take care of yourself physically. Exercise is one of the best stress reducers. Eat a balanced, healthy diet.

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Talk it Out If conflicts with your significant other over money matters are a primary source of stress, talk it over honestly and openly. Write down your short- and long-term financial goals to learn where the two of you can focus your discussions. Put your relationship first, while nurturing each other’s needs. Compromise, if necessary.

Take Action Exercise, positive thoughts, and conversation may help in the short term, but if you aren’t fixing the cause of your money worries, the stress will bounce right back into your life. You need to take action if money coming in is less than money going out; if you’re able to make only minimum payments on your credit cards; or you’re relying on plastic for essentials, such as food or rent.

To improve your financial health, the CFA suggests:

• Set up a budget. Write down where all your money is going – mortgage or rent, car payments, food, gas, cell phone data plans, and clothing. Then, see what can be adjusted so you can live within your means. Create a new spending plan and stick with it. If there’s nothing left to trim from your budget, you may need to think about new income sources.

• Stop taking on new debt, immediately. If this means not eating out, not indulging in expensive entertainment, or giving up a second car and taking public transportation, then so be it. Learn if you qualify for public or private financial assistance. Use low-interest savings to pay down high-interest debt. Debt can be very expensive to carry; once it’s paid off, your payments can go to savings instead.

• Get in touch with any creditors. If you can’t pay what they want, explain your situation and ask about setting up an acceptable payment schedule. They may be willing to work with you. Stopping the nagging phone calls from creditors can significantly ease stress.

• Get help, if necessary. Be wary of for-profit or non-credentialed counseling organizations, especially if they ask for a large advance payment.

A safer bet is the National Foundation for Credit Counseling Service (NFCC). For little or no cost, an NFCC counselor can help you develop a budget and a plan for addressing your total financial situation. Visit the NFCC Web site and click on “getting help.” Resources are available in Canada from The Financial Consumer Agency of Canada (FCAC) website.

It is possible to get out of debt, though doing so may require new ways of thinking and acting. But as soon as you start taking decisive steps, you should feel the financial stress start to ease.

Adapted from The StayWell Company, LLC ©2019

Contact Carebridge at 800.437.0911 or visit www.myliferesource.com for more information!

Copyright © 2019, Carebridge Corporation. All Rights Reserved. I!] . Oo aaa ·--

An economic downturn caused by world events can leave

many people feeling helpless, especially if their income

has been reduced. However, there are steps you can take

now to live within your means. Developing self-control of

your spending is a basic step in cutting the cost of living.

Here are some rules to keep your spending in check.

• Pay Cash — Instead of charging everything to your

credit card, make purchases with money, a check, or

a debit card. Use credit only when you can pay off the

balance in full.

• Make a Budget — Keep track of your income and

expenses for several months (or look back at your

receipts) to come up with a realistic budget, then stay

within your spending plan.

• Limit Your Debt — Other than housing, keep your

debt to less than 20% of your take-home pay.

• Use a Shopping List — Before purchasing groceries

or other household items, make a list. Stick to your

list; don’t buy on impulse.

• Eliminate Luxury Spending — Divide purchases

into things you need and things you want. Most of us

can live without premium movie channels, designer

clothing, and the latest technology.

• Seek Professional Help — Get the help of a financial

planner to see if you are using your money wisely.

Consumer credit counseling services may be availa-

ble at low or no cost.

Once you get your financial house in order and your in-

come returns to where it once was, you should take steps

to prevent future financial hardship.

• Plan for the Future — Make a list of items you need

to save for in the future such as college, a house, or

retirement. Set aside money each month.

• Have an Emergency Fund — Ideally, you should

have enough money in savings to pay your expenses

for six months. This will help you survive an unex-

pected lay-off, the death of a spouse, or a fire.

Use credit cards only when you can pay

off the balance in full.

Spending within your means takes discipline and some

sacrifice. But it will help you achieve your financial goals

in the long run and spare you a future of insurmountable

debt and possible bankruptcy.