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Why You Should Be Saving For The Next Pandemic Now

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Saving For The Next Pandemic

It’s hard to think about saving for the next pandemic when we are still in the thick of this one. And yet, experts say that there’s no time like the present to start preparing for the future. If you’re struggling with finances right now, then saving might feel like a challenge. But any little bit that you can set aside could help you down the line.

We Are Still In a Pandemic

Even though this article is about saving for the next pandemic, it’s important to acknowledge that we are still in the midst of the COVID-19 pandemic. People are struggling. Many people are barely making ends meet. And even those who are doing okay are uncertain about the future since it’s unclear what will happen with both employment and the economy in the months and year or so to come.

Yes, it’s hard to think about saving for the next pandemic in the midst of this. But it’s also the perfect time. For one thing, the reality of the pandemic is on your mind right now. Let’s face it; when things improve, we will all be so excited about the opportunity to travel and host guests and go out to activities that we might let ourselves slip a little with spending. Right now, when we really understand the impact of this pandemic, our minds are primed to begin saving for the next one.

Plus, we’re already tightening our money belts. Since we’re in the swing of things with saving money, it’s natural to set aside some for the future.

When Will There Be Another Pandemic?

We can’t predict when there will be another pandemic. We don’t know what it will look like when it happens. But experts say that the likelihood of another one is extremely high.

The World Health Organization and United Nations General Assembly say:

“COVID-19 will not be the world’s last health emergency and there is an urgent need for sustainable health emergency preparedness to deal with the next one.”

And Harvard Business Review goes so far as to say:

“SARS in 2003, H1N1 in 2009, MERS in 2012, and now Covid-19. We don’t know when or where, but we know with 100% certainty that another deadly infection will strike.”

Why You Should Be Saving For The Next Pandemic Now

So, number one, you should start saving now because there’s an extremely high likelihood that there will be another pandemic. Second, you’re already in the mindset to really understand the difficulty of living in the pandemic. Therefore, you’re in a good position to make the changes and sacrifices necessary to save.

After all, despite all of the financial struggles of 2020, nearly one quarter of Americans managed to save money during the coronavirus pandemic. And nearly half of people are spending less than at the same time last year. The “new normal” is to save money. For one thing, you’re probably not traveling. Of course, cutting out travel saves a lot of money.

Moreover, experts recommend using your COVID-19 experience to review your savings plan. Many people kept the traditional 3-6 months of income in their emergency fund. However, in the face of the pandemic, that ran out. Therefore, you might want to consider saving 6+ months in your emergency fund for the next time.

Finally, you might be able to negotiate your bills at this time. COVID-19 impacted so many people that lenders and service providers have put plans in place to help reduce costs for their customers. If you can take advantage of those plans, then it could be a silver lining for saving money.

Tips on Saving For The Next Pandemic

Obviously, saving for the next pandemic isn’t easy. Heck, it’s hard to save money in the healthiest of times! However, it is possible to set aside money.

Check out our article on How to Maximize Savings During a Pandemic. Tips from that article include: stringent budgeting, getting very clear about needs and wants during a pandemic, and skipping dining out in favor of all meals at home. In other words, go back to the basics that you already know about living frugally. When we earn more, we sometimes splurge more, but you probably already know how to cut back. Now is the time to implement those good money habits.

Similarly, North American Savings Bank recommends five key tips to save for the next time this happens:

  1. Create an emergency fund.
  2. Avoid major expenses.
  3. Reduce your outstanding debt.
  4. Manage your expenses.
  5. But, keep your home office.

In fact, that last one is perhaps the only bit of advice that differs now from traditional plans to save a lot of money. Many people over the years have scaled down their housing to reduce costs. Tiny homes and other small spaces help people save on rents and mortgages. However, now that many people are home all of the time – working at home, homeschooling their kids – more space might be worth that extra cost. It’s important to find a way to balance your household expenses with the space that you need. And remember, real estate is an investment. You might want to read: Which Real Estate Investments Are Safe During the COVID-19 Pandemic?

Other than that, though, it’s really all about going back to the basics.  Lower your costs as much as you can. Set aside as much as possible in savings. Also, check out our article on 10 Unusual Ways to Make Money During a Pandemic. It might feel like it’s impossible to make extra money right now. However, that’s not true at all. You do have options. And of course, the more you can make, the more you can save.

Finally, review your investments. You can still make money investing during COVID-19. Here are some articles that might help:

Governments, the Economy, and the Next Pandemic

While this article is primarily about individuals saving for the next pandemic, it’s important to note that much should also be done at the state, regional, national, and international levels. Governments and private organizations can do a lot towards improving the situation for next time in terms of reducing both the health impact and the financial troubles. Spending money to prevent the next pandemic would not only save lives but would also save economic costs down the line.

For example, scientists suggest “preserving forests, clamping down on the illegal wildlife trade, and starting a broad system of surveillance to catch emerging diseases before they spread.” All of this can lead to preventing the next pandemic or seriously limiting its spread and impact. This makes sense on a financial level as well. The scientists estimate that these measures would cost between $22 and $31 billion per year. Obviously, that’s a lot of money. However, it’s a fraction of the estimated cost of the COVID-19 pandemic, which is $27 trillion in 2020. In other words, “The cost of preventing the next pandemic is 2% of the cost we’re paying for COVID-19.”

The Harvard Business Review says that the United States government should consider affordable health care options for all citizens as a means to prevent individual and collective financial troubles during the next pandemic.

Are you saving for the next pandemic now? Share your thoughts in the comments!

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. If you want to be able to customize your blog on your own domain and need hosting service, we recommend trying BlueHost. They offer powerful hosting services for $3.95/month!

 

Should You Go on a Vacation During a Pandemic?

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Vacation During a Pandemic

Many people postponed or canceled their vacations when COVID-19 first hit. But now that it’s been here for months and shows no signs of slowing anytime soon, people are starting to want to resume their travel plans. With the holidays coming up even more people are likely to wonder if they should go on vacation during a pandemic. Here are something things to consider as you make that decision for yourself.

Pandemic Travel Pros and Cons Are Personal

Ultimately, the decision about whether or not to go on a vacation during a pandemic is a highly personal one. After all, even if other people would feel safe doing so, you’re not going to enjoy your vacation if traveling during this time feels very stressful for you. On the other hand, you might regret not attending a very special event despite the risks of COVID. You have to decide if the potential gains are worth the potential losses.

Benefits of Taking a Vacation During a Pandemic

Here are some of the reasons that people say that they have or would take a vacation during the COVID-19 pandemic:

  • Travel is cheaper. Whether you fly or rent a car, the rates may be cheaper right now since fewer people are traveling. Likewise, housing may be cheaper.
  • You really need to get away from home. If you’ve been sheltering-in-place / working from home then you might just really feel like you have to get out of the house. Balancing the health risks of taking a vacation during a pandemic with the mental health challenges of staying stuck at home might find you erring on the side of getting out and about.
  • You might not need to take vacation time. If you’re working remotely, perhaps you can work during your trip. If you usually have to work in an office, this can be a different experience for you and might be one that you enjoy.
  • You want to attend a big event, such as someone’s wedding or family reunion. Remember that big crowds do put you at greater risk of contracting COVID-19. That said, if you don’t want to miss a big event, then you might find it worth it to travel.

Drawbacks of Taking a Vacation During a Pandemic

  • Travel is less convenient. Although cheaper, you may find that it’s not as convenient as usual to take a vacation during a pandemic. Fewer hotels are open. Flights are (theoretically anyway) not booked to full capacity. So, getting the logistics taken care of might be harder than you’re used to.
  • The things you want to do might not be open. Museums, stores, restaurants, and other places that you might want to visit could be closed. Even if they are open, they might be operating a smaller capacity, so you may have trouble getting in. If you’re the type of person that likes to see all of the hot spots when you travel then it might not make sense to vacation during a pandemic.
  • Your exposure to COVID-19 is greater than if you stayed home. Learn more from the CDC about taking a vacation during a pandemic.

Things to Consider for Pandemic Vacation

If you weigh the pros and cons and decide that you do want to take a vacation during a pandemic, then make sure that you consider the following things:

Destinations for Pandemic Vacation

Where do you want to travel? Have you checked to make sure that you’re even allowed to travel there. Americans currently aren’t welcome in many destinations due to COVID-19 restrictions.

Moreover, have you checked to see how your desired destination is handling the pandemic? Even within the United States, COVID-19 rates and restrictions vary drastically. For example, San Francisco (which is one of the big cities with the lowest COVID-19 rates) has not yet reopened indoor dining.

Check the latest mask mandates and other requirements / precautions in your destination before you plan the trip. Also, make sure you know the most recent information for your destination’s quarantine regulations. Some areas, both within and outside of the United States, require a quarantine period from visitors upon arrival to the new area.

Means of Travel During a Pandemic

How are you going to get to your destination? Many people say that they wouldn’t want to travel by airplane during the pandemic. However, they may be comfortable doing a road trip their family. That said, a lot of people are going that route so many RV parks and campgrounds are booked full.

Cruise boats, trains, and buses are all travel options that have various restrictions during COVID-19. Consider the risks, weigh the benefits, and make sure that you know what the restrictions are for your chosen modes of travel.

Accommodations for Vacation During a Pandemic

First, check what accommodations options are available in your destination area. Are hotels open there? Are AirBnb rooms available or are they limited to rental only to essential workers?

Next, consider the risks of each option. Don’t hesitate to contact a hotel or AirBnB host to find out what precautions they are taking to reduce pandemic risks. For example, I took a weekend road trip to a hotel in a small town and some of their precautions included limited capacity, masks required in common areas, and no room cleaning during your stay but extra cleaning before and after.

Remember to review the amenities that will be closed before you book accommodations. For example, if you love to travel to hotels with spa service, you might be disappointed to learn that a hotel is open but its spa is closed during the pandemic. Likewise, a wine happy hour in the lobby of a boutique hotel may or may not be open.

Finally, you might consider alternatives to traditional accommodations. If you have a camper van or RV, perhaps camping makes the most sense. That said, people assuming that National Parks will be mostly empty could find that they’re booked full. Or, because it’s also fire/hurricane season, that they’re closed all together in certain areas. Plan ahead.

Additional Pandemic Considerations

Here are some of the other things that you’ll want to consider as you plan a vacation during a pandemic:

  • What are your plans for meals? Do you feel safe getting restaurant take-out food? Should you bring a camping stove and prepare your own meals?
  • Are all of your usual vaccines, including your annual flu shot, up to date?
  • Do you have any specific medical conditions that put you at greater risk than average for COVID-19? If so, what precautions do you need to take to best protect yourself during the trip?
  • Will you quarantine upon return home? What does that look like? Do you need to build that time into your vacation plan?

Weigh the pros and cons. Research so that you can plan ahead and take precautions. Then, if you decide to go, enjoy your vacation!

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. If you want to be able to customize your blog on your own domain and need hosting service, we recommend trying BlueHost. They offer powerful hosting services for $3.95/month!

Where Can I Buy Rolls of Quarters?

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Buy Rolls of Quarters

There are many strange ripple effects happening as a result of the COVID-19 pandemic. One of those strange ripples is a national coin shortage. If you’re like me, you’re struggling to get quarters to do your laundry. If you need to buy rolls of quarters, here’s some information that can help.

There’s a National Coin Shortage

I would never have thought that one day I would walk into my bank, ask to buy rolls of quarters, and receive the news that there were none. And yet, that’s exactly what happened one day about a month ago. The two banks closest to me each explained that there’s a national coin shortage.

It’s economically complicated, but the gist of it is that the way that COVID-19 shut down the economy has led to a decrease in availability of quarters. For one thing, people simply aren’t out spending cash. The quarters that they do have are sitting at home, unused, not out there circulating in the economy.

Moreover, the National Mint reduced the number of workers it had to the bare minimum in order to keep everyone safe during the coronavirus pandemic. As a result, they weren’t producing as many coins as usual. This led to a shortage. While most people don’t care about most coins for everyday use, quarters are still important. My building is one of many in this city, and of course in many cities across the nation, that offers laundry only if I pay the machine in quarters.

I have very few options besides quarter-based laundry. There is no laundromat anywhere near me. And even if there was, they are also suffering from a quarter shortage, so I might not be able to get quarters for the machines there anyway. I could have a wash-and-dry service do my laundry and bypass the quarters problem but that gets very expensive very fast, especially if I’ve got big loads of blankets and other heavy laundry.

So, I need to buy rolls of quarters. And yet, my bank doesn’t have them. So what is there to do?

First, Do Check Your Local Bank

Banks are doing their best to offer quarters when they can. For example, the Wells Fargo Bank where I have an account was able to give me $20 in quarters one week. The following week I was able to buy $10 worth of quarters. Then they didn’t have any but Chase, where I don’t even have an account, was able to sell me $10 worth of quarters.

So, check your bank. You might be able to buy rolls of quarters from them. Typically, you’ll have to buy just one – or if you’re lucky, two – rolls at a time. But it’s better than nothing. It’s helpful if you have an account with the bank. Your credit union might be a good choice. And if you happen to have a business account then you’ll have a better chance at getting first pick to buy rolls of quarters from the bank when they become available each week.

Convenience Stores and Grocery Stores

You might also want to try to buy rolls of quarters at your local grocery store or convenience store. Whether or not they will sell them to you varies by location. Plus, of course, with the coin shortage, they might skimp on them more than they did in the past. Nevertheless, it doesn’t hurt to ask.

If you frequent a local store, rather than a big chain, and they already know you as a customer then they might be more amenable to helping you out. I was at a local convenience store chatting with the owner about the fact that a lot of places aren’t taking cash right now (even though legally they are supposed to) which led us into a conversation about the national coin shortage. He immediately offered, “hey, if you need to buy rolls of quarters, I have some.” Being friendly to your local small business owner can go a long way in times like these.

Head to The Laundromat

If you need to do quarter-based laundry, then you might have some luck at the laundromat near you. Unfortunately, with the coin shortage, most laundromats will not sell quarters to you unless you are going to do your laundry on site. They’re struggling, too, and they need those quarters for their customers. If you’re a customer, then they’ll do their best to let you buy quarters.

Fast Food Restaurants, Gas Stations, and Other Stores

You can always ask to buy rolls of quarters at any store that you happen to already be shopping at. Even if they won’t sell you full rolls, they might be able to give you $1 or $2 in quarters. It certainly doesn’t hurt to ask, and you might end up getting the quarters that you need.

Note that if you’re going to a large store, such as a bog box store or a chain grocery store, then you might have better luck at the customer service counter than at the register.

Is There a Local Arcade?

There are several great local arcades in San Francisco. Normally, I can go into any one of them, put money into a machine and get quarters back. Of course, they aren’t rolled quarters, but they’re quarters all the same. Unfortunately, all of these places are closed during the COVID-19 pandemic. But that’s not true in other places in the country. So, if you happen to live in a place where arcades are open, that’s another place to add to your list of where you might try to get quarters.

Ask Friends and Family

Once I started running out of quarters for laundry, I started mentioning it to everyone that I know. It turns out that there are a lot of people with quarters in their homes that they aren’t using. Not everyone has to have quarters for laundry. Those that don’t have been more than happy to let me buy rolls of quarters from them. I’ve bought them from a neighbor, my partner, and my sister. (Okay, my partner and my sister actually just gave me theirs, but I would have given them the equal value in cash if they had asked.)

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. If you want to be able to customize your blog on your own domain and need hosting service, we recommend trying BlueHost. They offer powerful hosting services for $3.95/month!

10 Smart Podcast Episodes to Help You Understand Money During Coronavirus

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Smart Podcast Episodes

If you aren’t following financial podcasts, then you’re really missing out on a lot of terrific information. Here are 50 of the best money podcasts to get you started. In the past few months there have been some really smart podcast episodes for people who are interested in the way that the coronavirus pandemic intersects with finance. Even podcasts that aren’t solely focused on money have addressed this important topic.

Here are my top ten recommendations for smart podcast episodes related to COVID-19 and money:

1. Money and Coronavirus: Sam Sanders and Jill Schlesinger

This is the May 20, 2020 episode of It’s Been a Minute with Sam Sanders on NPR.

The episode begins by saying, “we are going to talk about the economy – but trust me, dear listener, it’s gonna be a chat that is ultimately uplifting in spite of all the numbers we’re all seeing.”

Sam goes on to note that:

  • One in four workers have lost their jobs since coronavirus began
  • More than 40 million Americans have filed for unemployment
  • People want to know whether young, middle-aged, or older people are most impacted

That last point is what the podcast is about. Sam speaks with Jill Schlesinger about the economic impact on different generations. She doesn’t hesitate to say that this is the worst economic recession she has ever seen. Then they discuss the intersection of age and class with the economic impact of COVID-19.

(Fun fact: the second half of the episode is about a Judge Mathis newsletter. If you like something light following your coronavirus financial news, this is a good option.)

2. Coronavirus: Financial Priorities

Speaking of Jill Schlesinger, the Jill on Money show has a lot of smart podcast episodes on this topic. These are short (10-20 minute) that answer questions you might have. My favorite is the May 20th episode on reassessing your Financial Priorities. But other recent episodes address key things including how coronavirus has impacted:

  • Negative interest rates
  • Needing a trust
  • Whether or not to buy Bitcoin
  • The Future of Work
  • Where to invest
  • Maxing out a Roth IRA early

3. Rent in the Time of Coronavirus

This is the May 26, 2020 episode of The Indicator from Planet Money on NPR. It’s a short episodes, less than nine minutes. Nevertheless, I think it’s one of the smart podcast episodes out there addressing a key issue affecting many of us today.

Individuals are struggling to pay rent. Some states have eviction moratoriums, some don’t. Even if you have one, how will you pay the back rent when things return to “normal”?

And if you’re a landlord, how do you cover mortgage payments if your tenants can’t pay rent? This podcast begins with a personal individual story that highlights this important aspect of money concerns during COVID-19. Then it goes on to discuss the issue at a national level.

If you want to get more information about the impact of coronavirus on personal finance, I definitely recommend this podcast. The April 20th episodes is about “coronavirus and the digital divide” and the April 2nd episode is about how businesses are pivoting to adapt to the “new normal.”

4. Falling Interest Rates and Real Estate Investing in the COVID Era

The How to Money Podcast is a smart podcast that is well worth tuning in to if you’re interested in financial matters. In particular, the show’s Friday episodes are specifically about the intersection of current news and personal finance. As a result, many recent episodes have looked at how COVID impacts our money.

The June 5, 2020 episode covers four key topics:

  • The increase in financial scams since COVID-19 began including stimulus check scams but also more unusual scams including pet adoption scams!
  • The pros and cons of falling interest rates for student loans, mortgages and other loans
  • Pay cuts at work for people who are still employed
  • Whether or not it’s a good idea to invest in real estate during this precarious time

5. Being Sold A Better You During COVID-19 with Amanda Montell

Some people love listening to really short podcasts. Other people like lengthy podcasts. I appreciate the former but tend to prefer the latter. I’ve just always loved long-format media. So I’m a particular fan of smart podcast episodes that are around an hour long. If you feel the same way, then be sure to check out this podcast. It is Season 6, Episode 7 of the Bad With Money Podcast.

This one is all about how people are taking advantage of the fear of coronavirus to sell you things that you don’t need. It’s about scams. However, it’s also just about smart – but sketchy – marketing. It discusses linguistics, the change in marketing language, and how we are “being sold a better you.” You’ll learn to look for keywords such as “contactless delivery.” You’ll learn to pay attention to companies pushing anti-anxiety or anti-virus products that might not actually help you out. It’s fascinating and I highly recommend this one.

6. Coronavirus: Is It Time to Give Up on Financial Independence?

The BiggerPockets Money Podcast is another one that has longer (hour plus) episodes. If you’re interested in FIRE information then it’s a good one to check out. Not all of the recent episodes directly relate to the impact of coronavirus. However, several of them do.

In particular, I liked the April 5th episode. They brought together four guests that retired from traditional employment and live the FIRE lifestyle. They come together to discuss how this pandemic is shaping and changing their lives as well as current and future finances.

7. Saving Money During Coronavirus: Some Not-So-Obvious Tips

Even though I love those long episodes, I do also think it’s helpful to listen to some “quick hit” tips. The WSJ Your Money Briefing podcast has episodes that are typically ten minutes or less. The May 27, 2020 episode is seven minutes rich with some great relevant-right-now money-saving tips. They emphasize “little hacks” that save just a tiny bit at a time. For example, there’s a reminder (and how to guide) to rank your expenses not determine what spending. Then you can cut that thing out and use the money as part of your weekly savings plan.

Other recent episode topics include:

  • How to Help Your Parents with Finances in a Pandemic
  • Unemployment Fraud Rises as Claims Hit Record Levels
  • Should You Withdraw From Your 401(k) During the Economic Crisis

8. Quarantine Life: What to Do Abut Kids, Celebrations, and “Free” Money

At thirteen minutes, this is one of the shortest episodes of The Rachel Cruze Show. She has some longer ones that address interesting topics including “what to do with your money during the coronavirus” and “how to bulletproof your emergency fund.” This one is a little lighter but I think it’s also really important for all of the people out there who have kids, especially kids who have birthdays, graduations, and other celebrations during coronavirus.

She talks about how the nice thing is she doesn’t have the pressure of “doing too much” for these celebrations because COVID-19 means that they’re just going to be at home. Nevertheless, you can do some fun memory-making things without spending much money. She also offers half a dozen suggestions for free entertainment at home for kids (that aren’t necessarily for parties or celebrations.)

9. Coronavirus, Oil, and Kansas

Have you ever wondered about the price of oil? Do you understand how it’s determined and what role global economics plays in that? If not (or even if you would just like a recap), this is one of those great smart podcast episodes that provides a succinct explanation. And it does so through the lens of coronavirus.

As they say at the top of the podcast, they “follow the plunge in oil prices from a viral outbreak in China to a meeting in Vienna to a little mom and pop oil business in Kansas.” They explain the history of OPEC. Then they delve into the geopolitics of oil prices. This episode came out early in the coronavirus pandemic, on March 11, 2020. It’s a Planet Money podcast episode.

10.The Emotions of Money with Suze Ormon

Suze Orman’s Women & Money podcast has several episodes that directly address the impact of coronavirus on personal finance. For example, March 22nd was about Getting Real With Your Money During the COVID-19 Crisis and March 29th addressed the stimulus.

However, my favorite recent episode doesn’t have COVID in the name or podcast description, and yet it seems highly relevant right now. It’s about The Emotions of Money. She talks about how desperate, and even suicidal, people feel because they are financially desperate. She shares that her own cousin took his own life in this situation last year.

Suze talks about how important it is not to let emotions dictate our financial decisions, including if/how we choose to deal with the stock market. In the face of not just coronavirus but also the BLM movement and the larger political landscape, emotions are running high. We can cope with those emotions in many ways, but she suggests we don’t let fear and anxiety make our financial decisions for us.

Am I missing any of your favorite recent podcast episodes about how coronavirus has impacted finances? Educate me by sharing in the comments!

Where Did My Stimulus Money Go? And Will We Get Another Payment?

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stimulus money

I mentioned recently that I had been wondering where my stimulus check was? I ended up receiving it in the mail. Apparently since I file my taxes through TurboTax, the government didn’t have my direct deposit information on file. I was grateful to receive that stimulus money. However, I live in the state of California. That money is already long gone. Here we are in a new month and, like many people across this nation, I’m wondering if we are going to receive another payment.

Stimulus Money Goes Further In Some States Than Others

As most of you are well aware, the government issued stimulus money for many citizens in response to the COVID-19 financial challenges. Individuals earning less than $99,000 (or couples earning less than $198,000 combined) were eligible to receive the first round of stimulus money. The amount was $1200 for many people with a smaller amount for those earning between $75,000 and $99,000. Parents received additional small payments per child.

I am grateful that I received that $1200. There are some people who still have not received that first stimulus check. I was lucky to get mine. I needed it for bills. But the fact is that $1200 goes a lot further in some places than in others. This money is supposed to help people pay their rent and other bills. My rent for my one-bedroom San Francisco apartment is nearly $1900. That’s a lot lower than it would be if I had moved into my place more recently; I’ve got rent control in a spot I’ve been in for over eight years. Nevertheless, you can do the math. $1200 in stimulus money left me $700 short of rent. It certainly didn’t leave anything for other critical bills.

The States Where Stimulus Checks Stretch Most and Least

I am fully aware that I live in one of the most expensive cities in the country. In fact, the cost of living is high across the whole state. In a report from USA Today, California ranked second in a list of places where stimulus money goes the least far. Other states where a $1200 stimulus check doesn’t even cover the average rent or mortgage payment include Massachusetts, New York, New Jersey, and Hawaii.

In states where rents are lower, people can get by better with the $1200 (or $2400 for couples plus $500 per child). The five states where stimulus checks will stretch the furthest are Mississippi, Arkansas, Oklahoma, West Virginia, and South Dakota.

Will Americans Get More Stimulus Money?

The government acted quickly in the face of COVID-19 to get billions of dollars in checks out to American citizens. But, as the numbers above suggest, it might not be enough. Many people, particularly in states where the money doesn’t stretch so far, aren’t sure how to keep paying the bills. In states that continue to shelter-in-place, a large percentage of people simply can’t go to work. That leaves a lot of us wondering if Americans are going to get more stimulus money.

Chances Are That Yes, We Will Get Some Type of Help

There is a lot of conflicting news about whether or not we will receive additional stimulus money. Lawmakers are extremely divided about if, how, and when to release a second stimulus check. That said, most reports indicate that some type of additional assistance is likely in the near future.

Just what that looks like remains unclear. Generally speaking, Democratic leaders are in favor of issuing more stimulus money and doing so quickly. In contrast, Republican leaders are calling for a slower approach, releasing less money perhaps to fewer people. Overall, it’s starting to look like the next round of assistance may take a form other than a direct check to Americans.

Suggestions on the Table for More Stimulus Money

Here are some of the suggestions lawmakers are considering when it comes to giving Americans more stimulus money:

$2000 Per Month

Two different proposals exist that would give Americans earning less than a certain amount the right to receive $2000 checks every month:

  • California’s Ro Khanna and Ohio’s Tim Ryan are calling for anyone over age 16 earning less than $130,000 to receive a $2000 check every month during the pandemic
  • Michigan’s Rashida Tlaib and Washington’s Pramila Jayapal have proposed the Automatic Boost to Communities Act which would give every American $2000 per month throughout the duration of the pandemic. Moreover, it would give $1000 per month to every American for one year after the pandemic ends.

Many Americans would love to see these suggestions enacted. However, as of the writing of this post, Republican leaders aren’t on board with giving out this much new stimulus money. In fact, they don’t want to give out direct stimulus checks at all. Therefore, these monthly checks seem increasingly unlikely.

Stimulus Check Tied to Payroll Tax Cut

President Trump is calling for a payroll tax cut. In other words, he wants to give a tax break to businesses as part of the next round of COVID-era relief. Some reports indicate that he supports indicate that he may be willing to support a direct stimulus check to individuals (amount unknown) if it is tied to a payroll tax cut. Other reports indicate that he wants to discuss a payroll tax cut first, leaving the direct stimulus check out of the conversation.

Expanding Aid to States

Increasingly it seems that the conversation is turning towards expanding other aid programs including money from the federal government to the states. Even the Democrats are turning their attention to the immediate need for further assistance with food stamps and unemployment funding. Many argue that this money is as critical, if not more so, than a second stimulus check. Moreover, it’s likely to receive more support from Republicans than a call for more direct stimulus money.

What to Do While We Wait to Find Out More

Things are up in the air right now. We simply don’t know if we are going to get more stimulus money. We can’t count on it. So, what should we do in the meantime? If you are struggling to make ends meet during COVID-19, review all of your options for relief. Check with your lenders about mortgage forbearance, skipping a month of payments, and other hardship options. If you qualify, apply for unemployment assistance and food stamps. Hang in there. The lawmakers are working on it, despite the fact that they are divided on how to proceed.

 

Changes in Law During the Coronavirus to Help People Nearing Retirement

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Changes in law during the coronavirus

The outbreak of COVID-19 across the globe has impacted the stock market, employment rates, and people’s everyday lives in a huge way. Millions of Americans watched their nest eggs disappear. For those nearing retirement, it is enough to send you into a panic. Thankfully, government officials are proposing changes in law during the coronavirus outbreak to help.

Changes in Law During the Coronavirus to Help People

As the virus swept across the world, the stock market collapsed. Because many retirement accounts rely on investments, people watched their savings for their golden years dwindle down to nothing.

Additionally, individuals who have been laid off during this time no longer have an income to contribute to their retirement. There is good news though. Officials are putting some changes in law into place to help.

1. RMDs Will Be Put on Hold

Required minimum distribution (RMD) refers to the minimum amount an investor must withdraw from their account after reaching age 72. This is common with many 401(k) and IRA plans. If you do not take the minimum, a fine will be placed on your account. However, during the coronavirus outbreak, the government has put a hold on minimum required withdrawals.

This will be the case for the entire year. Ed Slott, a certified public accountant, said: “Now, clients can sit out a year and avoid the tax bill on their 2020 RMDs if they wish.”

2. Penalties Are Being Eased

Individuals with IRAs and 401(k) accounts that have been financially impacted by the virus are also able to withdraw up to $100,000 from their retirement account without penalty. Typically if an accountholder withdraws early, they are required to pay a 10% early withdrawal fee.

It is important to note that this only applies to people who have been diagnosed with the coronavirus, been laid off due to the virus, had reduced work hours, or have otherwise been impacted.

3. You Can Get Larger 401(K) Loans

As mentioned in the point above, people with 401(k) accounts are able to take $100,000 out without a penalty. This is more than the typical $50,000 limit for 401(k) loans.

Other retirement plans will only allow you to take out up to a percentage of your balance. These limits will also be lifted for the rest of 2020.

Other Changes in Law and Policy

Policymakers are also pushing to make other changes to help Americans get through this time financially. For instance, Navient, a major federal student loan lender, has waived all interest and allowed borrowers to be granted forbearance until September. This means no payments will be required during this time.

On top of that, many mortgage companies and other businesses are offering payment relief at this time to assist people through the coronavirus outbreak. If you need assistance or are unable to make a payment at this time, the best thing to do is give the company a call and ask what your options are.

Readers, what do you think about the changes in law during the coronavirus outbreak? Are they helping you in any way?

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