Smart Money Podcast: Coronavirus Edition
Advertiser disclosure You’re our first priority. Everytime. We believe everyone should be able make financial decisions without hesitation. And while our site doesn’t feature every company or financial product that is available in the marketplace, we’re proud of the guidance we provide as well as the advice we provide and the tools we develop are impartial, independent, straightforward — and cost-free. So how do we make money? Our partners pay us. This may influence which products we review and write about (and the places they are featured on the site) However, it in no way affects our recommendations or advice that are based on many hours of study. Our partners are not able to be paid to ensure positive review of their services or products. .
Smart Money Podcast: Coronavirus Edition
by Liz Weston, CFP(r) Senior Writer | Personal Finance economics, credit scores, Liz Weston, CFP(r) is a personal financial columnist, co-host on the «Smart money» podcast, award-winning journalist and author of five books about money, including the best-selling «Your credit score.» Liz has been featured on a variety of radio and national TV shows, including»Today,» the «Today» show «NBC The Nightly News,»» the «Dr. Phil» show, as well as «All Things Considered.» Her columns are published by The Associated Press and appear in hundreds of media outlets every week. Before joining NerdWallet, she wrote for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She lives in Los Angeles with a husband along with a daughter and a co-dependent golden retriever.
and Sean Pyles Senior Writer | Personal financial, credit Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet’s «Smart Money» podcast. On «Smart Money» Sean talks with Nerds across the NerdWallet Content team to answer listeners’ personal finance questions. With a particular focus on sensible and actionable financial advice, Sean provides real-world guidance that can help consumers better the financial situation of their lives. In addition to answering listeners’ financial concerns on «Smart Money,» Sean also interviews guests outside of NerdWallet and also creates special segments that explore subjects like the racial wealth gap and how to begin investing, and the history of college loans.
Before Sean lead podcasting at NerdWallet He also covered issues related to consumer debt. His writing has been featured on USA Today, The New York Times and elsewhere. When when he’s not writing about personal finances, Sean can be found playing in the garden, taking runs and walking his dog for long walks. He is based within Ocean Shores, Washington.
Mar 23 Mar 23, 2020
Editor: Kathy Hinson Lead Assigning Editor Personal finances, credit scoring financial management and debt Kathy Hinson leads the core personal finance team at NerdWallet. Previously, she spent 18 years with The Oregonian in Portland in roles including copy desk chief and team leader for design and editing. Previous experience included news and copy editing for various Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor’s in mass communication and journalism at Iowa’s University of Iowa.
Many or all of the products featured here are from our partners, who pay us. This affects the products we write about and where and how the product is featured on a page. However, this does not influence our evaluations. Our opinions are entirely our own. Here’s a list and .
Welcome to NerdWallet’s Smart Money podcast, where we will answer your real-world financial questions — within 15 minutes or less.
This week’s theme is the coronavirus pandemic , and how to prepare financially in case of a consequences.
Find out where every dollar gets spent
Look for ways you can spend more on things you enjoy and less on things that you don’t.
Our perspective
The financial impact of the novel coronavirus as well as the COVID-19 disease that it causes are likely to be profound, with many individuals losing their jobs or having their hours reduced as economic growth slows. It might be too late to scratch together an emergency fund for three months however it is wise to cut back on your spending whenever possible, and to save an amount of cash to allow yourself a little cushion.
Having access to credit can be helpful during a emergency, but also. People with good credit scores could be eligible to apply for a credit card that has a zero-interest teaser rate. If you don’t have great credit might be tempted to get payday loans, but those aren’t cheap and can be extremely expensive. Instead, look for . Think about other community resources, for instance, Jewish Free Loan Association. Jewish Free Loan Association.
If you aren’t able to pay all your bills, try to prioritize the most important things like shelter as well as food, utilities and transportation. Contact your lenders to see whether hardship programs are available.
The economic crisis has also significant effects on the stock market that has experienced dramatic swings as a result of the economic uncertainty. If you’re 10 years or more away from having to use the money you have invested — for instance, if retirement is longer than 10 years away in the case of a hypothetical example, you can treat the gyrations as background noise. If you’re near retirement or already in retirement it’s possible that you’ll . It’s a good idea to check in with an unpaid, fiduciary financial planner to get a second opinion on the extent to which your retirement plans and investment allocations remain sensible.
And of course, people’s traveling plans are disrupted. Usually, insurance doesn’t cover this kind of disruption, however .
Our tips
Make sure you focus on what you can control, not what you aren’t able to control. It’s essential to keep yourself up-to-date, but don’t overdose on news that is negative. Consider limiting your time spent on watching news updates.
Prioritize your bills. If you’re unable to pay all your bills make sure you pay the necessities: shelter, food, utilities, transportation.
It is advisable to invest for the long run. The market will slow down and eventually recover. If your goal for your investment is more than 10 years into the future, then you are able to ignore the day-to-day swings.
More information about coronavirus is available on NerdWallet:
Have a money question? Text or call our number at 901-730-6373. Or you can email us at . To hear previous episodes, return to the
Episode transcript
Sean Pyles: Welcome to the NerdWallet Smart Money podcast We will answer your money-related questions within 15 to 15 minutes, or even less. I’m the host, Sean Pyles.
Liz Weston: And I’m Liz Weston. Be sure to send us any questions regarding your money. Text us or call us at (901) 730-6373. That’s (901) 730-NERD. Or email us at
Sean: This episode, we’re discussing a subject that we’ve received lots of inquiries about over the last few weeks: coronavirus and the best way to prepare your finances for its. The consequences of the new coronavirus and COVID-19 disease that it triggers are already being felt in our economy. A lot of workers are having their hours reduced or being dismissed. The stock market is having an emotional moment and people are trying to find ways to prepare for the worst, and this means strengthening your financial position and for some, doubling your stock of toilet paper.
Liz: Sean, you claimed that you thought it was an absurdity, but you discovered it wasn’t.
Sean Then I went to the store last night , and there were no shelves.
Liz: Yeah.
Sean: I’m glad to have one the Amazon subscriptions where I get something regularly because otherwise I’d be there, taking napkins. I don’t know. But it’s definitely serious. A lot of people are extremely anxious at the moment and lots of people will be in a very tight financial position.
Liz In this episode of NerdWallet’s Smart Money podcast, we’re going to discuss ways to prepare yourself financially and mentally, what to do if you can’t pay your bills, and why now is a great time to practice patience with your investments.
Sean»Sean»: Okay, let’s dive in.
Liz: OK, let’s start with the mental preparation part , because I feel this is putting a strain upon people, in ways they didn’t expect.
Sean: Yeah.
Liz Lisa: So Sean is there something wrong about you?
Sean: Well, I’m sure I’ll get lost in a news cycle when this occurs. For me, this means just looking at Twitter or listening to the radio and becoming immersed in the moment-to-moment news, and to me that actually makes me feel nervous. I believe that I do this because I’m trying to get back some sense that I’m in control. But I’m actually listening to things aren’t my control. And I’m sure many people are experiencing the same anxiety because it is pretty serious and there’s a lot of uncertainty. So one thing that I would like to see happen just mentally is for people to be aware of their stress and not dwell on the things they aren’t able to manage. Instead, try focusing on what you are able to control, like how much you’re washing your hands or the type of news you’re consuming and the cadence of the news you consume.
Liz: I think putting some limitations on it is really smart. I mean, you want to be a prepared citizen, and you need to be aware of the current situation however I believe we all have a tipping point at which it’s excessive.
Sean says: Yes, and I really like doing things that cause me to appear to have some form of self-control like this. I deleted Twitter off my phone . I added an extension to my web browser that makes it so I can only be able to view it for 5 minutes each day. This way, when I get that urge to see something it’s the news site instead of just slithering down the stream of people screaming in the dark. You just need to find a method to ensure that you are limiting the content you’re reading because it’s very easy to get very upset about this type of stuff.
Liz: Yeah, absolutely.
Sean: I think that’s excellent mentally, however, there are many things you can do financially to prepare for the possibility of a situation such as this.
Liz: I was thinking about the experience of walking into a grocery store only to find how empty the shelves appear and you realize that it’s too far too late to get ready right now.
Sean: Mm-hmm.
Liz: So there’s an amount of work you have to do. For instance, if you’ve been living from paycheck to paycheck and you just quit your job I could suggest you have a three-month emergency fund and it’s like, «Well, that was very beneficial.» That’s why, even when you have a job, and if you are still working, you want to be cautious about spending, you do have to put aside a bit of extra cash aside. And we at NerdWallet haven’t been big on the importance of having an emergency fund first because there are a lot of other financial priorities that generally need to be addressed that are more important in the long run. But we do want you to have at least an emergency fund, be it $750, $1000, or anything that gets you out of the pay check to paycheck trap that’s extremely easy to fall into. So if you’ve got that good thing, then good for you. If you’re in the position that this might be just a bit late, we’ve got alternatives for you.
Sean: That’s one thing that I was thinking about , too. Most people are living paycheck to paycheck. They don’t have an emergency savings account and now is really — especially if your hours are cut this is the time you should tap this. The thing I’m thinking about here is I know that a lot of folks are likely to use their credit cards. And in the event that you don’t have savings, I think that now might be the perfect time to apply for a 0 APR credit card which could provide a short-term cash reserve. While we generally don’t recommend taking on debt, but if need a bridge to cover costs right now, this could be an option. Make sure you make all of your payments punctually to ensure that your credit stays steady and that you strategy to pay off this debt before that zero APR time period expires. Because all of these cards, your APR period is typically between 12 to 15 months and after that interest rates can rise as high as 15%, or higher. Be aware of this.
Liz Liz: There are some alternatives in the form of alternatives to payday loans. If you do a search for payday loan alternatives, some of these are likely to pop up and are similar to charities. I’m aware that the Jewish [Free Loan Association] is out there declaring, «Hey, we’ve got money for people.» Short-term grants are a possibility. There are food banks. People are trying to help in various ways. So there are alternatives for payday loans. payday loan. Payday loans can be very scary.
Sean: Right.
Liz The borrower is a woman. cash and end up in a situation where they can’t pay it in full when payday arrives and they just wind in debt, owing due, and then not being capable of regaining their feet. If you’re considering one of these loans, look for an alternative.
Sean: Now is the best time to look to your local community and find out what resources there are. This is the time of year when the majority of these organizations as well as local groups for community are getting into high gear because they’ve been planning for. They’re there to support you. But the resources are finite and it can get really hard when you do lose your job as a lot of people, especially in the service industry are experiencing right now. Perhaps in a couple of weeks they’re going to realize, «Hey, I can’t pay my bills right now.» Therefore, I’d like to speak about this with you, Liz, because this will be extremely difficult, and it’s likely to affect a ton of people. Also, Liz I’m sure you wrote an article entitled «How to Pay Your Bills When You Can’t Pay Your Bills.» What do you think is the best advice for this?
Liz Sheryl: You must do triage, which means you need to prioritize the most crucial things first. That’s the most important things. It’s food, the shelter, the roof that covers your head, lights heating, transportation when you have to go to work, or to go to the doctor or whatever it is. That’s the basic things that you must ensure you are protected regardless of what. It’s important to remind people of this because if they do fall behind on their bills when collectors call, they are in a panic, and they will pay whoever’s being the nastiest. You must put your family and yourself first and take care of the most important things. After that, conduct a second triage on the rest of your bills. Which ones are the most severe negative consequences for not paying? Which ones have some leeway? Student loans, for example, typically have some kind of deferral or forbearance that allows the borrower to be able to go on not having to pay for a period of time.
Lenders typically have been much more accommodating in difficult times when they allow people to switch payment plans, or put off a payment or something like that However, you have to keep in touch with them. You have to be talking with them. If you just stop paying, you may have missed out on some kind of program that could benefit you. You could also have hurt your credit for no justifiable reason.
Sean: Yeah, this is one of those times that you must complete your work before the due date. One thing I’ve been quite pleasantly surprised to see in the past week is that lots of the creditors are actually putting out programs to be ahead of the game and saying, «Hey, we realize that things are pretty challenging right now. If you’re not able to pay your bills then give us a call.» But you have to make the call.
Liz: Yes, absolutely. We talk in another podcast about the best way to pay the IRS in the event that you’re unable to be able to pay IRS. So, that’s the other thing that’s being revealed that people are grappling with. If you have an unpaid tax bill you can’t pay, again, there are payment options and don’t shy away from them from looking the options, and it can really aid you.
Sean He wants their money and they want to to work with you and have an excellent rapport with you. So it takes being proactive, which is perhaps the last thing you’d like doing when fighting an illness and you’re worried about contracting a terrible illness. It takes around 10 minutes. You can give them a phone call and try to figure out the details because the most important thing you don’t want to do is to go into default and ruin your credit score. This can make things more difficult in the future should you need to get an additional line of credit.
Liz: Exactly.
Sean: A different thing I’m interested in this moment is the investments of people. There’s been a lot of concern about retirement accounts. We’ve seen the stock market really take a nosedive over the last couple of weeks. I’m curious about how people should look at this and what people should consider if they’re thinking of taking a complete and total withdrawal.
Liz The question is: What’s going on with the market? And the reason for it being so volatile is because those who make the trading and the investors have a long-term view and are going, «This is going to affect the economy, and we don’t know the extent.» And the stock market hates uncertain times, so you’re seeing it go all over the place. If you are not retiring tomorrow, then this is basically an unintentional noise. What’s happening from day, month to month, does not matter. What matters is what happens over the long run, the next 10 20 years, 20, 30 years. And we have the ability as human beings and as a nation in bouncing back. So I think over the long term, our chances are excellent, therefore I’m going to stay in the game and try not to pay much attention to the chaos. If you are about to retire, it’s a different situation. Find an independent, fee-only, fiduciary qualified financial advisor. Have another objective eye on your retirement plan to make sure it makes sense.
Sean Then, yes, that makes sense. This is another of those scenarios that you have to be aware of the food you consume so that you don’t work yourself into a tense situation where you’re taking your money out which could be detrimental to you 20-30 years later.
Liz says: What we noticed, which was really interesting, is a lot of people dived in the markets. We saw a lot of visitors to our site when the stock market went down the first time, and I would imagine there were lots of people who were sitting around going, «OK, here’s my buying opportunity.» Then the floor slid out of the way and they’re thinking, «Agghhhhh.» But this is just part of being an investor, this stuff happens and we’ve experienced bear markets before, we’ve had major corrections before. It does bounce back. For those who are still sitting on the sidelines it’s like you’re not going to in time to see it happen before it starts running up and, when the market does begin to recover and does so so fast, you’ll miss the bulk profits.
This is why every financial professional that is of a high standard is telling you to just stay the course, have an asset allocation and make sure your investments are in good shape and not look at them.
Sean: Turn off the television and instead go through an ebook.
Liz: Exactly.
Sean: Pop some popcorn. All right, great. Another thing I’d like to discuss is the travel plans. There are many people who don’t want to travel in the present or even have pre-existing plans to go towards Machu Picchu or who knows what else. The positive side is that many airlines are making arrangements and are not charging cancellation charges, though the rules are changing frequently it appears. So we actually have a link on our show notes post at nerdwallet.com/podcast to an article that is just regularly updated with different airlines’ cancellation policies. If you’ve got travel plans coming up, check that out and make sure that you again are taking a proactive approach to managing any plans you may have coming up.
Liz The writer: I’m kind of stunned since we’ve lived with these dreadful changes fees, non-refundable deposits as well as finger shaky and to have all these travel companies acknowledge the that fact is awe inspiring and like yeah, at least they’re doing that.
Sean The Sean. I believe that’s all we have time for. For folks that are getting worried out there, being a bit unsure about your finances be assured that you’re not alone, but know that there are some steps you can take to make this stressful time a little bit easier. So, let’s begin our guide to take away tips. In the beginning, concentrate on what you are able to manage, not on what you can’t. If you are unable to pay your bills on time pay for the essentials: shelter, food and utilities, as well as transportation. Lastly, during big market swings like we’re seeing right now, focus on the long term and ignore the swings that occur day-to-day.
That’s the only thing we can offer for this episode. Are you having a question about money that you’d like to ask? Turn to the nerds and call or text your questions at (901) 730-6373 that’s (901) 730-NERD. You can also contact us at and visit nerdwallet/podcast for more details on this episode and remember to rate, subscribe and review us whenever you’re listening to this podcast.
Liz: And here’s our brief disclaimer carefully crafted by the legal team of NerdWallet. Your questions are answered by skilled and experienced financial writers, however we’re not financial experts or financial advisors. This information is intended for general educational and entertainment purposes only and is not applicable to your particular circumstances.
Sean and Sean said, until next time, turn into the Nerds.
The authors’ bios: Liz Weston is a columnist at NerdWallet. She is certified as a financial planner and author of five books on money, including «Your credit score.»
Sean Pyles is the executive producer and host of NerdWallet’s Smart Money podcast. His writing has appeared in The New York Times, USA Today and elsewhere.
On a similar note…
Dive even deeper in Personal Finance
Make all the right money moves
If you treasured this article therefore you would like to obtain more info relating to $255 payday loans online same day california direct lender (creditkgar.site) generously visit the website.