Furloughed From Your Job? Take a Deep Breath - and Take These Money Steps

brianoconnell

Almost 40 million Americans have filed jobless claims during the COVID-10 crisis.

If you're among the jobless, or suspect you're about to be, Evan Press, a financial advisor with Equitable Advisors, offer some helpful financial moves to make to give you some financial breathing room. 

Here's what Press recommends . . . 

Have an honest conversation with your family about budgeting: Talking about job loss or financial hardship with your loved ones can be difficult and uncomfortable, especially if you’re the household’s primary breadwinner. It’s important to talk to your family about budgeting and saving during this time.

Speak to your lenders: Some lenders, such as mortgage companies, are offering forbearance programs that let you defer payments until you’re back up and running.

Stop or lower savings contributions (and use your savings if you need to): Evan can discuss strategies for figuring out where it might make sense to cut savings and where you should stay the course.

Create a bare-bones budget: Creating an effective budget starts with defining “needs” vs. “wants.” This means spending only on essentials like food, housing, medicines and sanitation products.

Stop using credit cards: If your savings allow for it, switch to only using cash or debit cards. This will force you to live within the budget you set and will ensure you don’t build up debt.

Be tax-smart: Estimate your total tax liability for the year. If your partner is still working, they may be able to reduce their tax withholding, as your total family overall income will be lower than expected. This will increase their take-home pay - and your household's, too.