Rate Your Financial Health – It’s Amazing what Could Happen!
Seven months ago, I wrote, How Would You Rate Your Financial Health, following an employee health fair at a local hotel. The date was February 15, 2020.
As health fairs go, this was well represented with physical health-related booths: diabetes care, assisted living centers, American Red Cross, and a CBD supplier, to name a few. I was unique as the only booth to discuss financial health.
Of the roughly 100 hotel employees to visit the health fair, 67 visited my booth. Many attendees acknowledged my booth, yet breezed by, barely glancing my way. Their body language gave hints of discomfort about the topic, and those that paused for a conversation admitted to concern. An informal survey produced these results when asked, “How would you rate your financial health?”
- 33 said POOR.
- 2 rated as “on life support.”
- 28 rolled their eyes, shrugged, cringed, and admitted, “Not so good.”
- 2 stated they felt comfortable.
The second question I asked, “If a disaster were to occur tomorrow—health, accident, unemployment—how long would your money last?”
- 41 said less than a month.
- 1 awkwardly joked and said two hours.
- 15 guessed ~4 months.
- 2 felt they would be okay for up to 8 months.
- 1 stated the spouse would supplement the needs.
- 34 admitted to overspending.
Jump to today (September 2020) and that event seems like ages ago with all that we’ve experienced in such a short time. None of us could have predicted, nor were prepared for what was to come less than a month later.
Just a few statistics since March 2020:
The Los Angeles Times reports:
- February 2020 – the United States enjoyed and unemployment rate of 3.5%; the lowest in 50 years.
- By April 2020 – the unemployment rate rocketed to 14.7 after 20.5 million jobs were lost.
The Johns Hopkins Magazine reports:
- 22 million Americans have filed for unemployment benefits by mid-April.
- The Small Business Administration has run out of money for its Paycheck Protection Program.
While there are far more statistics to report, I’ll share what I have seen and experienced:
My brother lost his job as a heavy machinery driver at an oil field in Texas. He has not been able to find another job since April. Unable to maintain his rent, he moved to Maryland to live with friends. He has not continued his job search.
My previous boss lost his job and is unable to find new employment. He strongly believes his age of 59 is playing a role in his inability to find a job. He is discouraged with his unemployment and is deeply concerned for his financial future.
My client load peaked during the second quarter as business owners felt this was a slight hiccup in their revenue. Many clients used this “slow time” to restructure their content marketing and build a stronger digital structure. By mid-June, my client load diminished with many saying they had to guard their business savings “for the time being”.
I personally know one person who tested positive for Covid in June. She had already been struggling with bronchitis 6 weeks previously and was tested out of precaution. She self-quarantined from home and is now fully recovered, yet states that Covid was not the cause nor contributing factor to her bronchitis.
A nursing friend has her first Covid patient as of September 4 and wears multiple layers of personal protection. She is tested twice each week.
And what about the hotel employees? Of the 67 who collected my business card or left their email address, I eventually received updates from three. A majority of employees who weren’t management level or higher were laid off in March, with many more laid off by May.
1. One gentleman in his 30s was concerned about his mother’s financial well-being and health. Acting as her caregiver, he sought solutions to help her be more comfortable within hers and his budget. Following the virus and his lay-off, he moved in with her to ensure her health and safety. He was able to find employment as a driver for DoorDash in May and at Home Depot soon after.
2. Of the one who stated the spouse would meet their needs, she kept her position as essential yet is still greatly concerned.
3. A long-time networking friend (and who introduced me to the health fair organizer) was laid off in April. He returned to work in August after keeping contact with employers and reapplying for his redefined position.
Financial lessons learned from the pandemic
Among those from the health fair and those I know, I asked what financial lessons or changes they recommend.
My boss: don’t trust anyone, especially when it comes to your future, your finances, or your career. He admits he is angry and bitter, but will continue to job hunt. He states, “This isn’t my first rodeo.”
The hotel friend: work hard to gain value and appreciation; take time before deciding anything.
My brother: take this time to re-evaluate your life and career. Most of us will lose our job anyway. Everyone will be in a rush to find new work. Job recovery will be slow. Instead of worry, take this time to review everything about your life and get rid of what doesn’t matter. Most of it is junk anyway. When the time is right, that’s when you get back to the job hunt. He is nagging me to take a sabbatical and not worry or think about money.
My actions and advice: My emergency fund is proving a helpful backup plan as is continuing my business structure. I’ve increased my follow-up plan and reached out to more connections to account for a slack in clients and projects. My advice: talk to banks, financial planners or advisors, and your service providers if money is a concern. They are willing to work with people who are upfront about the current financial crisis.
Other feedback and wisdom:
Discuss money with family. Many parents are receiving money requests from adult children who don’t realize their parents may be in a similar financial bind. Discuss ways to reduce expenses. Explore ways to eliminate unnecessary expenses.
Plan meals: heading to the grocery story is a pain! Rather than visit the store several times per week, make a meal plan of family favorites, create a grocery list, then visit the store once per week and stock up. Avoid straying from the list. Time, gas money, and food waste is limited and one couple I spoke with reported losing weight too!
The emergency fund: this is more appealing to many as they are now wishing they had taken this fund more seriously. The struggle is how to balance paying off debt with saving, but the current crisis is forcing those I spoke with to openly explore opportunities. With a little thought and creativity, debt can be reduced and the emergency fund can trend upward.
Sell unused treasures: this fits in with what my brother suggests. What have you stored in your basement that could use a new home? Price it reasonably and spread the word. I recently discovered a local AM radio show that has a call in Saturday mornings to share items for sale. I have a few items from my mother’s estate to add. You may find a few items in your home and a radio show to spread the word. Facebook marketplace has a site for selling items. Garage sales are an effective means too.
Personal finance resources
Within the same blog I wrote 7 months ago, I mentioned the Financial Freedom Summit. The first-of-its-kind event was scheduled for May 2020 in St. Louis. Due to the pandemic, it has been postponed, but not cancelled. Details and tickets are still available at the Financial Freedom Events webpage. The cool thing is they keep all participants updated on events and have already held a free webinar to discuss topics related to financial freedom. With the economic events to date, this summit will be a great resource to get you on target for your personal financial health.
A second resource I would like to share is the Plutus Foundation’s 11th Annual Plutus Awards Finalists. This program offers the best in financial content creators for a wide variety of categories. Award categories this year include, but are not limited to:
Best Canadian Finance content
Best Content Series
Best current Events Content Related to Personal Finance
Best Debt Freedom Content
Best Family or Couples Finance Content
Best Financial Content for Women
Best Financial Independence or Retire Early Content
Best Financial Literacy Content for Children
Best Generational Financial Literacy Content (I’m a finalist!)
And several other categories. Visit the 11th Annual Plutus Awards Finalists to view all the categories and finalists. You will find plenty of voices to help you accomplish your personal financial goals!
It’s a bit freaky to look back at the health fair and casually ask, “If a disaster were to occur tomorrow, how long would your money last?” Then to have a disaster occur a few weeks later and to know many of those I spoke with weren’t prepared! It’s a lesson we are all facing. It’s something we must prepare for because – what’s next?
How long will your money last?
Kristen
photo credit: Abundance from Pixabay