As coronavirus aka COVID-19 spreads around the globe, many individuals, families, and businesses are struggling to figure out our new world in all the chaos.
Many of us are likely experiencing financial stress. What exactly is financial stress? It's the gap between the unknown and reality smacking us in the face.
While there are many uncertainties remaining, there are steps we can take to lessen the stress of the current unknowns.
Regardless of your current employment situation, review the following three scenarios for your family’s financial situation to determine your financial fuel. Financial fuel is the amount of money you have leftover after paying your expenses/spending.
Make a list of your expenses and consider the following impact to your budget based on the following changes to your pay.
For example, if you and your partner took home $3,500 per month in income, but your expenses were also $3,500, this is what your pay changes may look like based on the three scenarios:
Keep in mind for every 1 bad month we have financially it takes about 3 months of financial recovery time.
If you have lost your job, are worried your position or industry is not stable, or if you do not have an emergency fund, there are steps you can take to fill the gap.
4 Ways to Fill Gap
As coronavirus aka COVID-19 spreads around the globe, many individuals, families, and businesses are struggling to figure out our new world in all the chaos.
Many of us are likely experiencing financial stress. What exactly is financial stress? It's the gap between the unknown and reality smacking us in the face.
While there are many uncertainties remaining, there are steps we can take to lessen the stress of the current unknowns.
Regardless of your current employment situation, review the following three scenarios for your family’s financial situation to determine your financial fuel. Financial fuel is the amount of money you have leftover after paying your expenses/spending.
Make a list of your expenses and consider the following impact to your budget based on the following changes to your pay.
For example, if you and your partner took home $3,500 per month in income, but your expenses were also $3,500, this is what your pay changes may look like based on the three scenarios:
Keep in mind for every 1 bad month we have financially it takes about 3 months of financial recovery time.
If you have lost your job, are worried your position or industry is not stable, or if you do not have an emergency fund, there are steps you can take to fill the gap.
4 Ways to Fill Gap
Intro: 0:09
Welcome to Talk Wealth to Me, a safe space podcast where we chat about anything and everything related to personal finance.
Felipe Arevalo: 0:19
The information contained in this podcast is for educational and entertainment purposes only. It does not constitute as accounting, legal, tax or other professional advice.
Chase Peckham: 0:32
Hello and welcome to another edition of talk wealth to me shooting the financial blank. Today is the first time that Katie, Phil and I got together, Ah, to discuss the Coronavirus and the effects that it's having on us and our neighbors in our country, discussing some of the financials, tips and things that we have been discussing in the financial world over these last three weeks. So way hope all of you are well and healthy and take a listen here.
Felipe Arevalo: 1:10
Um, you guys' scenery is way better than mine.
Chase Peckham: 1:15
Buddy. This is the same scenery I have had now for a week-and-a-half. My little my little corner of our house. That is my desk that I, dining room table, By the way, which I share with my daughter in the morning. Um, she is currently getting dressed because my wife is putting a moratorium on Internet for her because she's done with school. My son is still, he's in class right now up in his corner of the house, Um, Bishops, they're doing full-on like they're following their classes right now and Keri's in meetings upstairs. And the poor dog is not getting walked. So Keri is making Avery go walk the dog right now. But were we have definitely worked very hard at making sure that we all have our little work areas, that we aren't on top of each other all the time and that we could make this seem as normal as possible. Which kind of leads me to say or to ask you guys, How is it going in your neck of the woods?
Felipe Arevalo: 2:20
Well, alright.
Chase Peckham: 2:21
Okay. God, Katie, that was really funny. I'm sitting here on zoom, watching the both of you, like, kind of like, All right, I'm gonna wait for the pause. Who's gonna talk and then both of you? Exactly. At the same time. I guess only
Felipe Arevalo: 2:33
the delay
Chase Peckham: 2:33
there is a delay. That is a fact.
Felipe Arevalo: 2:38
All right, I'll go start. Um, it's been interesting ah as You guys know I have two little ones And that's been the biggest challenge is keeping them busy keeping them. Ah, I'd like to say learning, but at this point with the older one, that's more of just keeping him entertained throughout the course of the day. And, um, he he's watching his brother. That's his job. While, Mommy and Daddy are working. He is, to play with his brother. Um, I asked him. I made it, tried to seem like it was his. We're working. So you're working too, buddy. Um, I even asked him what he would want his wages to be. Um, he priced himself at a dollar a day.
Chase Peckham: 3:27
Oh, that is brilliant.
Felipe Arevalo: 3:30
Exactly. I was like, Well, you don't really have much, You know, the value of your time if you need to figure that out. So I did up him to $2 a day. Still getting a great deal. Um, so he mostly just trying to keep him distracting his brother, try and keep him watching Mickey Mouse clubhouse, or puppy dog pals or whatever else we can ah put on there and not just trying to adjust as everyone else to not being able to just go out and do things, and obviously we can go out and do groceries and, you know, go out for walks and that kind of thing. But, you know, there are more restrictions. Where can't go bring him to the park after work, Let him blow off steam or things like that.
Chase Peckham: 4:21
Governor Newsom kind of slapped us on the backside a little bit. Uh, here in California, if you guys haven't been aware of that, Apparently Californians weren't following his,
Felipe Arevalo: 4:33
no
Chase Peckham: 4:33
uh, rules very closely and has now closed state beaches and parks.
Felipe Arevalo: 4:41
I did see that. And I've seen that they're actually out there patrolling.
Chase Peckham: 4:45
Yeah, they are, which I will admit, Keri and I, we thought we were social distancing. We went to Ah, just the other Satur, on Saturday we, um took a picnic and we took my truck and we went out to the glider port in La Jolla which, for those who don't know that if they're golf fans, Torrey Pines golf courses right there and that is ah, view that a lot of times the cameras will get during the golf tournament is all those ah, paragliders that are off the cliffs there. And we just sat there wasn't anybody within 1000 feet of us, and we just sat and looked at the ocean and breathed in beautiful, clean air. Apparently, that was against the rules, though. And so I apologize for that. But we have not been close to anyone at all.
Katie Utterback: 5:33
We're doing well um, for us, life really hasn't changed all that much. It's more watching our friends and family how their lives changed. My husband works remotely every day. Anyway, um, so it was just me that was going to work, and I I am. Still working so I don't have that, um financial concern that a lot of people have, and I get need the house every day because I have a dog. So I have permission to walk him once a day. Um, it is weird walking a dog. I will say some people are not. Um, I've been trying to flip this in my mind. Instead of calling it social distancing, calling it physical distancing, because we've actually been social connecting more than ever. So, walking a dog some people don't want to stay six feet away. And I am kinda a rule follower
Chase Peckham: 6:28
That is I have that shocking. And I'm glad to know that the cackle laugh is still putting the meter over even remotely. Katie. So I am so happy that there is some normalcy in this, uh, shooting the financial shit episode. So let's get right to that. I think, as you mentioned, social distancing may not be the right term. And I think you're absolutely right, because socially and why I hadn't thought of this before of doing these remote happy hours with friends across the country. Last Friday night, there was, like, 15 of us on this social happy hour, all sitting in our homes, having a beer or whatever they're they're libation of choice was and just reminiscing and talking. And Keri was doing the same thing with her girlfriends, friends that she had, you know, meeting up with them, her friends, that are in Florida. And we're here on the West Coast. Uh, from that end, it's been unreal.
Katie Utterback: 7:27
I have to say that I don't want to come across as being unsympathetic to everyone whose lives have been turned upside down by all of this. Um, but I do think that there's a silver lining in all of this. And that is look how many of us are connecting with people that we just forgot about. Or we were just too busy to call. You know like you said we're having happy hour across the country, and we're connecting with music. And, um, fitness in a way that a lot of this haven't done in a long time. You're seeing a ton of people put out free workout videos and offering free classes. I think that's cool.
Chase Peckham: 8:07
I have patellar tendinitis right now because I have been spinning on my Peloton so much. Now literally nine days straight.
Felipe Arevalo: 8:17
Yeah, I was looking at the Pelotons, and I was saying to myself, You know, at this point, if I had one, I probably using it. I have kids do a ah, dance party this morning, I just put on music and I had them clear the living room and I said, Do your thing go wild.
Chase Peckham: 8:36
Nice.
Felipe Arevalo: 8:37
And it worked. They're mellow right now. Um, they I think they're eating too, so that it helps, but, um yeah, there they just went crazy. Sucks for the neighbor and, um, downstairs from us. I apologized to him, but you just have to deal with it. And ah, they blew off some. steam. And they're they're mellow. It's gonna dance parties. We're gonna just have to be a thing they do every morning.
Chase Peckham: 9:05
Yeah. I mean, one of the biggest different, most difficult things for human beings in general is to adapt. We're really good at it. And we're really bad at it. Um, initially, you know, I think your social distancing, um, or physical distancing, as you called it. Katie, I think we're gonna coin that right here. By the way, we should be putting that out. Um, is absolutely
Katie Utterback: 9:29
Well, disclaimer, I didn't come up with it. Michael Franti, the musician, came up with it and he's offering free concerts on Instagram
Felipe Arevalo: 9:41
I have been seeing, you know, I have been seeing There's a few artists who have been doing Ah and Brad Paisley. Last week. He was taking requests.
Chase Peckham: 9:49
I was I was there for that one. Yeah, Yeah,
Felipe Arevalo: 9:52
it was really cool. Um, you know, So I think artists are out there doing that, and that's something that I'm sure helps them past the time. It's not like they're used to sit around at home all day that you know, they're busy people, and it kind of helps everyone else. I know. I had Ah! Ah, friend. Tag me and ah, Happy hour thing and tagged a whole bunch of people and all of a sudden brought sitting at home having a drink over the weekend. And it was different, but it was pretty cool everyone sending pictures of what they're drinking and whatnot. Um, the way to hang out without having a go physically hangout.
Chase Peckham: 10:32
So the financial component to all this is obviously dramatic for a lot of people. we're very lucky in our situation that the way our business works, we can work remotely. Um, but there are a lot of people that aren't in that situation. And I think for today's episode I think we want to share a few things If there's places that people need to go for help, Um, that there are places Ah, and different institutions that are at the beginning stages of financial relief. Um, and as much as they can, including the federal government and state governments doing what they can in there in people's individual states. I know as well as you know, biggest. One of the big things is when you have to make a house payment, Um, or a rental payment. And what are they doing? And so there's a lot of banks out there that have are giving mortgage relief and deferring payments for a as far out of 120 days in some, um, if you can show, um, real hardship that they will defer them. As Much as needed. An ally bank is doing that. So is B of A as well, as not only their mortgages, but they're, ah, HELOC their home equity lines of credit. So you just need to go in. I guess in this situation, what I would tell everybody is be proactive, Go to those financial institutions and let him know that you've been laid off and that there are things that you know, whatever you need to do and and and they're ready for these all they have to do People have to fill out requests or they fill out different applications. Um, in some cases, like Citibank, you do it through their what's called Sendler FSB, which is their service provider, Quicken Loans is is doing it as well, and the list goes on. So whatever your financial institution, check with them and find out what those are.
Felipe Arevalo: 12:27
I think you need to reach out and anything you can do, like self-service. If they offer you the option to do it online, as opposed to speaking to a representative, it may be something you want to look into simply because you know a lot of these bigger banks, as we know, have call centers in other parts of the world. For example, perhaps India and I know there's a lot of them call centers in India and India's shutdown moments of your whole times. If you can get ahold of someone, will probably be exponentially longer than it would be on a normal day, because whatever limited call centers they have here stateside or trying to handle that volume Ah, for you know, there bigger call centers that they have internationally. So something to keep in mind. If you could do it yourself online, you're gonna save yourself a lot of hold time.
Chase Peckham: 13:20
I experienced that the other day trying to work with my new credit union, who has the financing on my truck. Ah, and they sent me a booklet of things that I tear out and then would send in the mail with this. And I'm like, man, how 20th century is this? Yeah, and so I tried calling them to figure this out, and you can do everything online. Um, but the wait time, I finally just had them call me back. At a certain point, they did, But it was about an hour till they called me back and we got everything figured out, and we'll get that payment. But it it was, you know, an experience in that There will be delayed times if you're trying to speak with a human being
Chase Peckham: 14:03
Did you see that lady who went to the bathroom in the middle of a conference call?
Felipe Arevalo: 14:06
Yes, that was
Intro: 14:07
hilarious. I missed that. What happened?
Felipe Arevalo: 14:11
I was laughing. There is this lady. They were doing your conference calls and company. And it was, you know, 10 people on there something not have we have the little boxes of the top.
Intro: 14:21
Sure,
Felipe Arevalo: 14:21
they have a lot of the little boxes in this lady's here. Like pick up her laptop and start walking around her house. And then she sets it up on the floor and she sits on the bathroom like she started going to the bathroom. Not forgetting. I don't know what she was thinking. But her camera was on.
Chase Peckham: 14:36
Oh, boy.
Felipe Arevalo: 14:37
And you see the reaction of her co workers here And they're like, Oh, that's like trying to get her attention.
Chase Peckham: 14:44
She didn't realize that the video is going
Felipe Arevalo: 14:48
Right. A little bit later. I think she heard it or something on the things laptop flipped it around. Um, but I've seen that a couple times It I don't know what, but it was very funny.
Katie Utterback: 15:02
Yeah, this is my fear. And I was thinking who is the coworker who posted that?
Felipe Arevalo: 15:08
right. I hope she posted it in light. Like to make fun of herself. But I don't know. It's something to keep in mind. You know, something we're using technology that they never used before. Um, I know I Right before we got locked down, I showed my mom how to, uh, send and receive video calls so that my parents could see the the boys, and then they could call my brother and my nephew. Um, I don't know if it works with from android to an apple phone the same way. So I set her up a Snapchat so that my brother to get a hold over on Snapchat. My mom has no clue what Snapchat is. Um but I told her it's the little yellow thing with the ghost. And then you get a call that you could answer it. Um and you know, new technology to them that they I mean, we just got my mom on a smartphone, this last upgrade. Ah, my dad still uses a flip down. So, you know, the whole generation that may be hopeless isn't interested in this Is using this technology just stay connected.
Chase Peckham: 16:13
That's crazy. Uh, this is unprecedented times, obviously for all of us. And it's all a lot to get used to. Um, obviously, there's quite a few businesses that have been shut down. And so there are people that are losing their jobs. Ah, at least for the time being. So, Katie, I know that there are places that people can go. What are some of those?
Katie Utterback: 16:39
So the best place people can go if you've lost your job. Um, we're recommending people go to the career one stop site. That's a Labor Department site. I actually have a race to that on the debt wave. Websites with debtwave.org. You'll see a coded 19 at the Stephen recesses, and I have a little there. So all you have to do is just plugin You gonna drop down there, you know where your status and then that link will put you where you need to go to find unemployment information for your state. Unfortunately, it varies state by state, 50 different What they believe is so there just It kind of gives people an understanding of what we're talking about. What unemployment figures. The restaurant industry is actually the second-largest private employer in the United States. It's about 15.6 million people employed in the restaurant industry. Similar industries that have been greatly impacted. The hospitality industry. About four million people on the airline. They employ about 3/4 of a 1,000,007 150,000 people. No, there's a large impact, and we all are preparing. Financial continues on the market. That kind of caring for I'm just running Thursday, March 26. Um, is there other explain? It leveled around 30 percent. Um, it is a lot of higher than it has been in relative past. Um, but yet Thio help kind of use some of that financial stress. Um, I everyone talks about this before. I don't come from a financial background and a lot of the financial uncertainty was stressing me out Because of all the stuff I don't know. When it comes to finances and a recession or depression, if you start using that terminology, I don't know. Um, so I kinda came up with this metaphor and I think about it. And what we're really trying to do right now is just prepare people just trying to help people get a world map, because we don't know when all this is gonna end, right? So it's kind of like going to the beach. It's kind of the best in that parking come up with. Most of us have been to the beach, so we know generally what to expect. Please, you're going to a new beach you don't have. You kind of know something's like they need to bring a towel. You need to bring a suit. You may need to bring a cool with water or food. I know. Well, you don't know. Is it gonna be a crowded beach is a fair going to detain or they're gonna be cigarette butts everywhere. You know, there's just a lot of things like this party's gonna be tricky and those are just some of the of everything that we don't know. But I did. I found four different, uh, think you could do with your finances right now, regardless of what is happening with your employment status. So the first thing that experts are recognizing that you do it, you hear out healthy, increase your financial tools. So they're asking people to figure out video budget to hear how you can increase your financial fueled by tended 20 defense. So for some people that filing for unemployment, um, if the government does decide to pass legislation where family needed to check, that would be another way to include financial fuels. Um, there is a new app in absolute called Betty S D. B A B Y. Oh, it download that app you can in quit your zip code, and it will show you various side hustle that are available in your area. Right now, the APP does have your options ability because in the coded 19 geodetic and some of the side hustles did have to shut down on which is organizing lime Scooters. That's not really an option right now. But when the economy tanks to come back and his job back, if you have this app, will be one of the first people modified so that even if you can't take advantage of any hotel is a great way that wonder according to see, you're gonna be one of the first people to mail in your area. You just do the job. Um, also, people are being encouraged to Tash in reward points where that before credit card bill credit would disclose anything that you have that you can catch it and use Do that. Um, also, if you're looking for, uh, something that you can do to earn money if you have a talent that you couldn't sell, like writing, singing, editing, producing there's a lot of jobs, uh, remote job you could do on five or upwards. Um, And then the second step. So afternoon credit a priest financial school recommending everyone it's defying everyone everyone should be was doing your, um, saving. Do you have an emergency? Sons, Do you have a checking account of vacation fund? A downpayment phone. All of those are supposed to kind of be into a free goods. So for a day, and I you're contributing to a house, find the recommendation is right Now that we kind of abuse that, um e that money moving into that I don't mean just the future. All that going into savings right now, especially if you're in a partnered relationships recommending everyone be on the same page,
Intro: 22:13
those kinds of things. Those things that you can put off for a while. That or not, um, for urgency right now should be kind of diverted to a more savings plan in case you're finances are impacted.
Katie Utterback: 22:30
Right? Well, what I'm also saying right now is that because you don't know that any day No, it's it. Don't say to use your dancing. It's your vacation fun if you have to take your rent. I don't think Sister's been exceptional right yet. Um, so for us, the destiny that was keeping in mind age and I both have her job. But again, everyone being recommended you are. You see?
Intro: 22:55
That's right.
Katie Utterback: 22:55
Well, a lot of these are practices that you'll do in everyday life. But I just wanted to share this information for those people like myself, you know I have that back e
Chase Peckham: 23:08
1000%.
Felipe Arevalo: 23:10
There's a lot of uncertainty also for individuals who aren't able to continue their work, even if they're eligible for unemployment and there to apply for unemployment. There's there's a huge influx of unemployment applications. So who's to say, you know, if or how long the delay to receive any of that aid? Maybe you know the system. Isn't you set up to take up that many applications at one time? Um, yes, I heard stories of people with long hold times didn't They're trying to get someone to help him, you know, apply for unemployment or things of that nature. If there was a long whole time just to apply, you might be eligible and you'll get the aid. But how long will it be before you actually receive in?
Chase Peckham: 23:59
Well, I know that most states are looking at where they have seven day hold periods are getting rid of those, so they're trying to catch up or they have
Katie Utterback: 24:10
Yeah, but that's still in the time before to apply for in the delay, you might be eligible earlier, but at the same time, you know, that doesn't mean your paper was gonna be processed as soon as you submit it.
Chase Peckham: 24:24
That's a fact.
Felipe Arevalo: 24:26
I think it's also, you know, depends on, you know, the profession and thing. Whether, uh, you know, is it something where they can work from home with kids? Or if you're not working from home and you know, you're you're not able to do so You do get some savings on some things. It's important to try and reallocate those funds. You're not paying for child care. Child care is expensive. Um, you know, if you're not paying for gas, I have no gas. Prices are down. But I honestly have no clue what gas costs ring now because I filled up a week ago and I don't know when I'll need to fill up again. I'm not driving anywhere. Drive to the grocery store and back. It's a three minute commute. You're saving that money that you were commuting and and also, you know, time is money and ah, Chase. I know you're familiar with the term. Like, um, you have extra time if you had a 30 to 40 minute commute. Ah, each way. That's an extra 30 to 40 minutes that you can used for yourself. Use for your your family or used for your own mental wellbeing. Takes some time. Play the guitar than you've been trying to learn or do some push ups. Or get that extra exercise that you were trying a never had time to do. Ah, and and try and make sure that we remember tohave. Aside from just the financial things, you deal with the financial things, but at the same time, you've got to take care of your well being and make sure that you're go outside, take a deep breath joke. Do whatever it is that you like to do because we don't know how long this is gonna be. And it will be important, too. Stay mentally sharp is possible.
Chase Peckham: 26:27
Without question. It's all it. It's becoming a new normal for us in week two. Um, at least for most of us in this situation. Um, just stay diligent, you know, do the best you can. You know, there's there's a lot of things where we're saving money in right now because, like just because, for instance, you know sports and all those things that air no longer going on right. Those things that we would spend that money on, we're no longer spending on on. That's where that's money that we can take and put towards savings. Katie, as as you mentioned. So if you're spending $200 a month or something on, you know, club soccer, you can take that $200 a month and put that towards savings. Ah, if you are, you know, little leagues and those kinds of things that are now no longer there and think of all the different eating out and yeah, the travel that goes with the sports and all those things. That is kind of a double-edged sword. You know, we're saving money individually, but yet we are not stimulating the economy as we would when we're visiting hotels and restaurants and buying those things. But there are companies that are being very smart about this as a for instance, we talked about the exercise and the peloton thing, but Dick's sporting goods ah has got a fair amount of ah, few of staff members and they're doing Kurds curbside pickup because they know that people are wanting to work out more and there's equipment that they they need. Ah, And so you just drive up. They put it in your trunk for you and you're gone. Ah, don't touch anything. So you can. It's a new way toe to do things. So there are companies that are being really ah, ingenious through this whole situation.
Katie Utterback: 28:18
Yeah, even locally, you there have been It's an individual that, uh, practice meditation. And they have classes only at the time that the tape would have been offering, please. Morning and night. Meditation is helping you with anxiety or fear and yeah,
Chase Peckham: 28:36
yeah, it really is. Is about Is this as you do see, humanity? Uh, as I mentioned many, many times that most people are good and want to help their human counterparts. And they're they're animal counterparts and everything else that people will do their best to work together today.
Felipe Arevalo: 29:00
On Twitter the same year Humane Society is helping out and giving. They have, like, a food pick up things for people were having a hard time get their food for their cats and dogs. And no, you see all that, and you realize there are people out there still doing good. Yeah. No, they're absolutely. Which is possible how Wait. The power. Our school district here locally, uh, opened up the a lot of those kids that are huge struggling and food sensitive drive throughs. Yeah, and they're opening it up. Not just a power Unified students. They've opened it up to anyone under 18. Yeah, I saw that. That was really cool. Yeah, that's a really, really cool thing. Um, you know, any way you can help in our way, we have E s s, um Then we have teachers and the staff that watch our kids after school. Ah, and between school. And they are, that is a nonprofit. 100% of our fees go to paying for Ah, the employment of of those. It's nothing comes out of the state or school. It's all paid for by our fees. Um, and even though they offered to pay, but not charges, you know, we're in a place where we can keep our fees on where we would like them to be paid. Still, So where, um, still paying those fees? Even though the kids are not being watched? Obviously. Um, but we want to try toe, keep those people employed, so anything you can do If you're in a position where you can, you know you're employed still, and you can help out in many different ways. Um, you know, anything that you can do can, uh, can go a long way and hopefully we get back to work here soon. Yeah. My kid said, you know, I really would rather go to school. I'd rather be dropping off a school to know for sure. My kids? Yeah. My daughter has to write a blogged weekly, and her first block was This is not as much fun as I thought it would be. And I want to go back to school, and I want to see my friends. And I want to see my teacher with the one year old in the six year old, there's been times where I'm like, Oh, I need you both take a nap. Yeah, I can't really bad. Ah. Uh, but they mean they put their they're adapting themselves. They just can't really express it. You know, before we in this, uh, I do from the San Diego Financial Literacy Center and our talk wealth to me crew, you know, thank you to all of the doctors and nurses and essential employees that are on the front lines and handling those that are sick right now. And thank God, um, I I pray every day that, you know, my family so far is healthy. Um, that being said, there are those that are not. And then there's those that are putting themselves in harm's way. So my heart felt thank you, goes out to all of them. And I have a few quite a few friends that are doctors and nurses that are on the front lines all the time. Um, and what they see is, uh is not Is that is his real life compared to what we're reading on Twitter and our social media networks and what you know, Oh, notifications that we're getting on our computers and tablets. It's very hard to read through the minutia and what is real and what is not. What is politically charged in what is not, um, but thank you to all of those doctors, nurses and staff that are making our hospitals and are medical foundation work