Money Musings 💭 No April Fool’s here… 🤪
Today is April Fool’s Day. I’ve always wanted to do a hilarious April Fool’s Money Musing but given everything going on, our current reality is April Fool’s enough for me.
Think about it…
We’re in a devastating global pandemic. All non-essential workers are quarantined in their homes, cheering on our essential worker heroes, and trying to homeschool their children.
Yep, that’s real.
This all spawned a nationwide toilet paper shortage. TP has become a prize possession and the source of many memes. 🧻
Also real.
Potentially related - Tiger King is #1 on Netflix. And yes, I started watching it. 🤦♀️
Strangely, real.
In another surprising turn, the left and the right came together (despite some furious feuding) to pass the largest emergency aid package in US history - a $2 trillion Coronavirus stimulus package called the CARES Act.
Benefits include a $1,200 check for each American adult (and $500 for qualifying children) earning below certain thresholds. AND it will not count as taxable income.
Shocking, yet real.
Here are some highlights of the CARES Act:
Show me the money.
First up, Stimulus Payments. Use this calculator to see how much you can expect to receive. If you haven’t filed your 2019 taxes, use your 2018 income in the calculator. When can you expect it? Within the next few weeks.
Expanded unemployment benefits.
A record 3.3 million people filed for unemployment last week due to COVID-19. This package expands on typical unemployment benefits - eligible workers will receive an extra $600 per week on top of their state benefit.
It also includes many more workers who were not eligible before, including part-time workers, people who experienced reduced hours and self-employed people.
To file for unemployment, file with your specific state. Here’s a list of the state websites.
More student loan relief.
Payments on all federal student loans (direct loans taken out in the last 10 years) will be suspended until September 30th. You should receive a notice (or can login to check) and can choose to continue paying down principal.
Interest should not accrue during this period, these months should still count towards forgiveness and loan rehabilitation programs, and any changes to payments should not affect your credit score.
Forgivable loans for small businesses.
The bill includes $370 billion for small businesses, including forgivable loans for 2.5x your monthly payroll, mortgage and utilities expenses. More details coming in early April!
Menstrual products.
Menstrual products are now eligible for reimbursement in health savings accounts and flexible spending accounts. It only took 15 years! 💪
For other questions, this FAQ is really comprehensive!
PS Completely separate but also very real - yesterday was Equal Pay Day, which highlights the great income disparity women, and especially women of color face. Read up on it here.
MONEY MOVE OF THE WEEK
Find and Marie Kondo your monthly expense number. If you are looking for a ‘Money Move’ this week, we’re going to Marie Kondo our finances to adjust for our new normal of COVID-19 life. Why? Many of us are experiencing changes in income or want to save more of what we earn to build our rainy day funds. Either way, our expenses are critical.
Note: If you are a parent working from home with no childcare or one of the emergency workers on our front lines, just do whatever you can. 🙌 It’s a three-step process.
First, list out all of your current expenses (fixed and variable). You can use this budgeting spreadsheet if you are looking for a format. We want to get very clear on where our money is going. If you want to be spending less, move on to #2.
Are there any expenses you’re ready to let go of or no longer need at this time (you can always add them back)? This doesn’t mean you have to cut out everything. Ask yourself (and answer honestly) - Do I need this? Are there other ways to get this? Is this adding value to my life / aligned with my values?
For the expenses that are leftover, a lot of companies are open to negotiating or providing relief. Call up your credit card companies, lenders, subscription providers, etc. and see what they can offer to those who have been affected by the pandemic.
YOU GOTTA SEE THIS
Money Mantras. I recently completed Deepak Chopra’s 21-Day Abundance Challenge. I loved it. Has anyone else tried it? 🙋♀️ There is a phrase of the day, much like the concept of ‘Money Mantras’ I talk about in The 30-Day Money Cleanse. Money Mantras are the things we tell ourselves - over and over again - about money (and usually aren’t very positive). BUT we can work to reprogram powerful Money Mantras that become self-fulfilling prophecies.
Telling ourselves positive things about money causes us to take action that helps us achieve our goals and changes our views about ourselves and money. And in order to reprogram our self-talk, we need to be reminded of our new positive Money Mantra often.
I'm excited to share that we now have Money Mantra images you can download and set as the lock screen of your phone. To start, we have four options. Choose the Money Mantra that most resonates with you. I can’t wait to hear what you think!