Coronavirus financial advice

  1. #1
    theguru's Avatar
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    Coronavirus financial advice

    I know some of you are very smart with money and I would like to hear your opinions on this.

    In short, if something isn't needed to survive you probably shouldn't spend money on it.

    Anyone?
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    I'm looking at taking a big hit come May if this thing last too much longer. I've got enough to last, but we are currently in no spending mode. We will likely finally part ways with DirecTV in an effort to cut spending. Dining out (which is almost impossible to do now anyway), entertainment, etc will be cut back. We will be down to spending money only on food, medication, neccesary home supplies and neccesary utilities until the economy gets back to normal.

  3. #3
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    I think that's more of a case by case scenario depending on the individual's financial situation before this hit. But in general it's not a bad rule of thumb.

    I mean I don't need beer or bourbon to survive but I'll still be drinking it. I've ran some numbers and the money my family will save due to the country essentially being shut down we will quite possibly be saving more money than usual during this. My income is going to take a bit of a hit until this is over but my better half has been told she will receive her same pay on salary, though bonuses will be effected.

    That said no one knows whether the economy rebounds quickly after this or if it takes a long time, so in general it's a good time for anyone who is able to do so to save as much as they can. Just my quick take on it.

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    I'm trusting God on finances. I've done my best to be a good investor, a financial planner and steward of my money. The rest is up to Him.

    No cop-out. No apology. That's the way I see it.

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    We're in good shape financially because we have zero debt and plenty put back in an emergency fund, but we're scaling back some just by not eating out. It's amazing how much we spend on that.

    Food, Utilities, & Shelter trump everything else in times like these. And don't be too proud to ask for help. And maybe look into a part time gig for a few weeks to bring in some extra income. Just a hundred dollars more per week can make a significant difference.

  6. #6

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    Iím pulling back pretty hard because Iím part of a small business that could conceivably go out of business, and I could be looking at possibly being unemployed for a time. That uncertainty means Iím playing it very safe, and maybe picking up a side hustle again.

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    I wouldn’t buy anything that’s not a need right now.

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    The wife and I's jobs should be fine through all of this. I do worry about my parents and brother who own small businesses. A huge event they work will undoubtedly be cancelled, and it accounts for about 20% of their annual income. That ain't good.

  9. #9

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    Quote Originally Posted by theguru View Post
    I know some of you are very smart with money and I would like to hear your opinions on this.

    In short, if something isn't needed to survive you probably shouldn't spend money on it.

    Anyone?
    Pretty much the way I was taught to survive, have followed those thoughts for a long time. Not losing any sleep over the money end of this deal.

  10. #10
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    Quote Originally Posted by Randy Parker View Post
    We're in good shape financially because we have zero debt and plenty put back in an emergency fund, but we're scaling back some just by not eating out. It's amazing how much we spend on that.

    Food, Utilities, & Shelter trump everything else in times like these. And don't be too proud to ask for help. And maybe look into a part time gig for a few weeks to bring in some extra income. Just a hundred dollars more per week can make a significant difference.
    Food, utilities, shelter and a boatload of prescriptions. Heart medicine today, insulin tomorrow.

  11. #11
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    Quote Originally Posted by mcpapa View Post
    Food, utilities, shelter and a boatload of prescriptions. Heart medicine today, insulin tomorrow.
    Good point. I have a couple of prescriptions but they're dirt cheap.

  12. #12
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    I initially thought there would be a big uptick in online shopping, but now I am thinking the opposite.

  13. #13
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    Quote Originally Posted by Beechwoodfan View Post
    I initially thought there would be a big uptick in online shopping, but now I am thinking the opposite.
    There will be the initial rush just like at Kroger and other similar places, then everyone will settle down and save every penny.

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    Seems it would depend on the stability of your income and your "buffer fund" availability and options.

    If your income is stable and not at risk - i.e. retirement stream of annuity or other set income flow and/or social security - that would seem to dampen the need to get super tight. And if you have access to back-up funds like a large 401K and are over 59 1/2 (or 55 in some cases) then that is good insurance that would again favor not getting to crazy with thriftiness.

    If you are at high or medium risk of losing your job and that is your only source of income and have no next egg to fall back on if the income flow stops (and anyone under 59 1/2 should look at that 401K as a last resort) then "survival mode" spending may very well be advised.

    Personally, we are going ahead with a home improvement we had planned. But we are more in the former category than the later.

    PS. I plan on paying my $15 next time around - so you can count on that.

  15. #15
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    Personally, I’m trying to best guess when the bottom is going to be in the stock market and investing. I’m looking to put some money in to Delta, but I feel like a flight restriction is imminent at this point and as soon as that happens I’m putting quite a bit in that. Of course I’m saving a little more than usual, but I don’t anticipate anything happening to my job except for maybe short term but not for more than a couple of weeks if at all. Working in the golf industry, we do have somewhat of the luxury of being one of the activities people can do while also practicing social distancing. So right now basically just saving a little bit more than usual by not eating out and things like that. But I’m personally looking at this as more of an opportunity than a potential pitfall.

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