TOP 10 STEPS FOR

Financially SurvivingEverything you need to know right now to manage your

money during this catastrophic economic downturn.

THE YEAR OF COVID-19

© 2020 SHAKE YOUR MONEY TREE

10 Steps to Take Right Now:

3 File for Unemployment - NOW.

Unemployment benefits have changed to now include part-time, gigand self-employed individuals. Even if you don’t think you would havequalified in the past, it pays to still file a claim because all previousrules are being bent. Benefits are increasing by $600 a week,regardless of how much you would otherwise have qualified forthrough your state, so even if you’re at the rock bottom weeklybenefit amount based on prior income, you may get at least the $600weekly benefit. Benefits will be extended to 39 weeks (probablybecause everyone will have a hard time finding other work for anextended period of time after we come out of social distancing), but ifyou’re already receiving benefits, and they’re set to expire during thistime, you’ll need to make sure you re-apply to continue youreligibility.

Accept Help from the Stimulus.

The stimulus checks are set to go out in 3 weeks, but they’ll be sent toeither the address on your 2018 or 2019 tax return (if already filed) orget automatically deposited into the checking account tied to that taxreturn. If you’ve moved, or that bank account is no longer active, thenyou’ll eventually get a voucher sent to your current address. So, payattention and if you don’t get a check within 3 weeks after April 6, thenyou’ll need to do some digging.

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Check to See if You Qualify.

If you’re wondering whether you qualify for the money, check out thiscalculator. Keep in mind - this is not free money. It’s an advance onyour 2020 tax credits. Technically it’s your 2020 income that dictatesthe payment amount, but since none of us know what our total incomewill be this year, this is the only way the Treasury department candistribute checks for now. So, if you don’t qualify right now based onyour income level back in 2018 or last year, but are out of work duringthis time, more than likely you’ll get a rebate (tax credit) when you fileyour 2020 tax return. And because this money is technically the taxcredit taken early, it will not be taxable as income.*

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Michelle Clark | 4.2.20 | ShakeYourMoneyTree.com

10 Steps Continued...Save Everything You Can.

If you're not sure where your next paycheck is coming from, DO NOTuse the stimulus money to pay off your credit cards if you carrybalances, DO NOT pre-pay anything and DO NOT go crazy buying stuffyou don’t need. SAVE, SAVE, SAVE. The fact is, we don’t know exactlyhow long it will take for our economy to recover, which means you don’tknow how long it’ll be before you have a full income coming in again.

5SAVE, Even if You're Currently Employed.

If you have a full-time job right now, I want you to still save becausewho knows what else might hit the fan in your life. The roof couldcollapse from a tree falling on it in a storm, or the water heater or ACmight decide to quit working, or you might end up in the hospital forsomething unrelated to coronavirus. This is not the time to thinkyou’re in good shape if you don’t have at least 6 months of expensessitting in a savings account.

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6 Reach Out to Creditors.

This means contacting your insurance carrier, credit union or bank,credit card companies, and student loan, auto and mortgage lendersto request suspension of payments, or a lower interest rate, or ahigher credit limit. They will not be giving automatic reprieves, so youmust still make your payments unless and until you get authorizationfrom them to put them on hold. And this doesn’t automatically meanyou’ll never have to pay back the money. Check each of their websitesto find out what they’re offering to those in need right now. TIP: When you contact them, you need to proactively state you arereaching out for temporary relief because you’ve lost your income due tocoronavirus. The reps cannot help you with any of the available resourcesunless you specifically state this is the reason you’re asking for help - andthey cannot prompt you to say so.

Michelle Clark | 4.2.20 | ShakeYourMoneyTree.com

10 Steps Continued...Tap Into Retirement - But Only If You Must.

You may be able to take a hardship loan against your 401k, and you canwithdraw up to $100,000 from your retirement accounts withoutincurring an early 10% withdrawal penalty, but you’ll still owe incometaxes. You’ll have up to 3 years to pay the taxes on that money andrepay the loan, but if you can avoid either of these options, please try.These options should be an absolute LAST RESORT and only if you’veexhausted all other options. If possible, tap into any Roth contributionsyou’ve made first before dipping into any pre-tax dollars you put inbecause Roth contributions are not tax or penalized upon withdrawal(since you put the money in after tax to begin with). And keep in mindthat your retirement dollars are protected under bankruptcy (up toaround $1million), so think twice before you tap into these funds since ifyou do end up needing to file BK, you’ll be able to retain those dollarsfor your future needs.

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8 It's Okay to Rely on Credit - For Now.

As much as I hate to suggest this, if you are looking to rely on creditcards to carry you through, first ask for an increase to your currentcredit limits. Then if you need to add a credit card or two to tie youover, do not apply for a bunch all at once because that will hurtyour credit score long-term. Instead, look for ones that you thinkyou may actually qualify for, such as those that will approve youwithout a current job, and only apply for one or two. Just know thatagain, this is not free money, and these cards may carry evenhigher interest rates than others. These are also to be used as a lastresort if you anticipate getting back to work once we come out ofthis situation and will have the means to pay them off quickly.

Michelle Clark | 4.2.20 | ShakeYourMoneyTree.com

10 Steps Continued...Hang Onto Your Insurance.

This is as much of a health scare as it is a financial one, and even if youdon’t think you’re at risk for contracting the virus, you could fall ill ofsomething else or have an accident. And God-forbid you or your spousedies of this thing, your family is going to wish you had life insurance inforce! If you had health insurance through your employer, and you’re nowunemployed, you can keep your coverage under COBRA, but you mustelect to continue your coverage within 60 days of your last day ofemployment and your premium will be not only your portion youpreviously paid, but also the employer’s contribution amount plus a 2%admin fee. COBRA premiums can be as much as 4x’s your previouscontribution amount, so be prepared to pay. Or you can elect to getindividual coverage through the healthcare exchange available throughyour state’s insurance marketplace. For the time being, consider gettinga low premium, high out of pocket cost plan if that’s all you can afford.Something is better than nothing! Don’t risk being turned away by aprovider because you’re not covered.

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10 Resist the Temptation to Invest.

I'm not a financial advisor*, but I do know we can expect volatility in thestock market for the next few years as we come out of this. It will go upand it will go down. The only thing you need to be wary of is thetemptation to invest your extra money or unemployment benefits intothe market because stocks are cheap. I remember when we came out ofthe last financial crisis everyone was saying they wished they’d haveinvested more when stock prices were rock bottom. But most of usweren’t in a financial situation to be able to do that. it’s bad financialadvice to risk money you have in the bank now for a hope and a prayerof future gain later on. You must take care of your needs right now, notbe wishing you could get in on the market while it’s cheap to do so.

Michelle Clark | 4.2.20 | ShakeYourMoneyTree.com

Go to careeronestop.org, which is

sponsored by the U.S. Department of

Labor, to learn how to apply for

unemployment in your state.

Go to consumerfinance.gov/coronavirus

for the most up-to-date information and

press releases, and to get additional

financial resources to help you protect

your finances during this time.

*I am not legally legally able to give tax

or retirement planning advice, so

this is information I’ve learned from

experts. I recommend you reach out to

your tax or investment advisor to get

specific guidance on your individual

situation. The IRS also has a website

where more information will be posted

and updated.Remember:I'm here to help you navigate your waythrough this crisis. You can book 15minutes, one hour or more to getindividual coaching.

Michelle Clark | 4.2.20 | ShakeYourMoneyTree.com

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