For one thing, federal moratoriums on evictions are no longer in effect and extended unemployment benefits are about to end. High inflation in some sectors makes the situation more difficult, as does the increase in housing costs. On the other hand, there have been more and more jobs (though perhaps not those used by hotel and restaurant workers, theater people, and small business owners) available in many parts of the country, but the pace of growth of the employment has slowed down lately.
No two situations are the same, but when you have been on the brink of a crisis - emotional and financial - for so long, it is especially important to perform three types of checks.
Take into account:
- First, find another human to talk to who has seen more (and hopefully knows more) than you.
- Then do a quick, basic audit of your financial situation.
- Finally, examine your feelings, as they may influence the way you plan your recovery from a pandemic that has forever expanded our understanding of what qualifies as a volatile industry.
Everyone can go to a Stephen
Good financial planners are a reliable source of guidance, but you may not be able to afford one right now or find one who will agree to help you for free.
So, think that almost every workplace or industry community has one or two gurus available for any matter related to personal financial advice. Look for them.
If that doesn't work, where else could you look on your list of acquaintances? Consider freelancers, especially those in creative industries. Sudden income crises may sound familiar because they often don't have secure biweekly payments and they know how to deal with dry spells.
For many years, Stephen Lee Anderson has been that person for up-and-coming stage actors in New York. Anderson is particularly good at pressuring them to invest themselves in a retirement account first. "If you give 10 percent to your agent, don't you think you're worth at least the same?" He told me this week.
The Stephens (and Stephanies) of the world are still there, giving all kinds of helpful advice to people without professional financial planning.
Or maybe you are one of those who believes that unity is strength. If you are suffering or trying to recover, it is very likely that others in your profession or in your workplace are also in the same situation. Consider forming a support group, a kind of book club, but for money issues. That may mean awkward transparency, but it can help you learn and be accountable for your decisions.
Get some certainty about your debts and taxes
Any bounce or reboot should include the basics. Your credit report works as a file and resume for lenders investigating you, while your tax return is a kind of self-assessment of your income, retirement savings, and ability to keep records.
Like it or not, credit bureaus like Equifax, Experian, and TransUnion have enormous power over what you'll have to pay when you apply for a loan or whether you can even get a mortgage, a credit card, a car loan, or rent a home. .
Perhaps you accumulated a debt on your credit card because you had no other option, or you decided to spend more to make your life easier and safer these last 18 months. If so, keep in mind that the provisions of the first major pandemic relief bill still require credit reporting agencies to mark people as “in good standing” on their accounts even if they have received certain types of payment facilities. from your lenders. (Have you asked your lender to give you a break? If you need it, now is the best time to do so.)
The Consumer Financial Protection Bureau (CFPB) offers clear advice on how these temporary rules are supposed to work, including specific facilities that you can try to request from your lender that should also protect your credit. These rules will be in effect until 120 days after the end of the national state of emergency, which has so far been renewed by the federal government throughout the pandemic.
Additionally, credit reporting agencies currently allow individuals to review their reports weekly, free of charge. If your credit is precarious, or even if it is not, take advantage of this opportunity.
It is well known that agency reports contain a fair amount of errors. If you find some, make the claim. To get started, contact both credit bureaus and financial services companies that may have provided the wrong information (the CFPB has a good guide on this).
And when it comes to your tax return , it never hurts to organize all the tax data you can during the last months of the calendar year. It's a record of your recent past and a window into your long-term future (for example, through any entry about retirement savings). The process can also serve as a reminder that there is often at least one more thing you can do in the present to help you while giving less money to various government agencies.
Don't just contemplate the catastrophe
Now, let's talk about your feelings.
Even for those used to financial uncertainty, the pandemic may have increased the kind of catastrophic thinking that can impair your ability to plan and prioritize.
In Hollywood, among a class of workers that resembles theater people like our financial mentor Stephen, even the most successful often ended up paralyzed with fear, said Leighann Miko, whose financial planning firm often works with people who jump out of control. job to job.
"The fear was that the situation would take much longer to improve," Miko said. "People came to think that they were going to have to look for another type of job." What they really wanted to avoid was what she called “Plan Z,” that is, previous jobs in different industries that they hoped would never have to accept again.
Miko sees a kind of psychological scar in the people around her, even people who make $ 600,000 a year. Yes, I know, poor people, but they know very well that even without a pandemic, they always run the risk of having a year with only $ 30,000 in income. To help those who cannot conceive of doing anything other than their dream jobs, which they have fought so hard for, Miko makes plans and strategies and tries to get them to follow them.
"Minimizing future catastrophes means ensuring that there are multiple layers to each safety net," explained Miko. "Because at some point they will fall from the first and then from the second."
So instead of getting lost wondering what the next unimaginable might be, make a plan of action for the next turbulence. It can be relatively simple: If your income falls from “B” to “A”, go to “C”, “D” and “E” in that order and reduce “F”, “G” and “H”. If that's not enough, swallow your pride and ask people “I” and “J” for help.
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