topic Re: Financial adjustments - corona in Community Chat

Financial adjustments - corona

springers — Sat, 04 Apr 2020 23:58:40 GMT

My husband is in auto sales. Not knowing the duration of this pandemic, we made some adjustments. The mortgage payment is pushed back 30 days, I will need to call for another 30 if needed.
The car payment is pushed back for 3 months.
This gives us room to breathe while we don’t know what the future holds.
We are using his check for food and utilities.
We have some savings and Equity line but hoping not to use those.
Looking forward to the 1200 check and tax refund.

Re: Financial adjustments - corona

Mz iMac — Sun, 05 Apr 2020 00:19:58 GMT

@springers wrote:
My husband is in auto sales.

@springers My oldest child was having car troubles & paid a lot of $$$ to have it fixed. Car is starting to nickle & dime her. I told her maybe when businesses start opening again its possible new car dealerships may have car deals that you can't possibly pass up.

Can you ask your husband if this is so?

Re: Financial adjustments - corona

JasoninBoston — Sun, 05 Apr 2020 00:23:16 GMT

I have cut way back on my spending!

I live in downtown Boston and am quite scared about the financial markets.

My apt looks out at the 2000 room Back Bay Sheraton Hotel. It has been completely closed for the past several weeks and is now dark. In the other direction I can see the Mandarin Oriental hotel. That is also closed (although they do have condos there and people are still in those).

It's very frightening to me what's happening and as I mentioned in another thread all the luxury shops near by have completely removed all their inventory and are completely empty and in some cases boarded up to prevent people from breaking in (which I don't know why anyone would due to them being empty)!

And then there are the smaller shops that are all closed as well.

I mentioned to my dad that I don't see how things can quickly bounce back as this is the scene all over the world.....From what's happening here everything is closed down like this for at least through the end of April and perhaps longer....

God help everyone!

Re: Financial adjustments - corona

GCR18 — Sun, 05 Apr 2020 00:30:38 GMT

It's tough out there. The daily unemployment numbers are scary. My job hasn't been impacted, but I've been around long enough there are no guarantees in life. I hope things pickup with your husband's job. Best wishes.

Re: Financial adjustments - corona

LisaMofSLC — Sun, 05 Apr 2020 00:38:17 GMT

My company has had layoffs in what they deem non essential departments. Luckily we have become so busy, we're working enforced over time. It is slowing though, and although I don't worry about layoffs, I do fear pay cuts. The CEOs have taken a 50% cut. I remember years ago when employees of various companies were given pay cuts. They never really fully recovered what they lost, at least not for years. I recently received a $300 bonus, and instead of saving it, I am spending it on badly needed clothes (I work at home and haven't bought new in several years, so holes are starting to appear in my shirts). Also used some for Schwan's food delivery so I don't have to go out. My rent is so high, a pay cut would devastate my budget. Any wonder so many of us are stressed out about more than getting sick.

Re: Financial adjustments - corona

AuntG — Sun, 05 Apr 2020 00:35:36 GMT

Those who can afford it can probably get great deals on cars right now.

Re: Financial adjustments - corona

springers — Sun, 05 Apr 2020 00:53:00 GMT

Yes, my husbands dealership is open and people that can afford to can get good deals.
a lot of makers are offering no payments for 3 months and low interest rates

Re: Financial adjustments - corona

sceniccoast — Sun, 05 Apr 2020 01:02:28 GMT

So far, I'm fortunate to still be working. For how long, is anyones' guess.

House & cars are paid for. Wish our CC was lower but working on it. Other than that, we're trying not to touch our savings much.

My 401K is a big worry! I was planning on retiring (at least part-time) next March. Now, it's very iffy!

Wishing everyone good health & good luck with the finances.

Re: Financial adjustments - corona

Shanus — Sun, 05 Apr 2020 11:48:44 GMT

@springers wrote:
Yes, my husbands dealership is open and people that can afford to can get good deals.
a lot of makers are offering no payments for 3 months and low interest rates

@springers I've seen ads on TV about that.

Re: Financial adjustments - corona

Shanus — Sun, 05 Apr 2020 11:56:17 GMT

DH still going to the office and working from home. Even though tax deadline moved to July 15th, those expecting refunds want to file now. The only issue is they want their return done, but are not paying their bill. The medical practices that make up 1/2 of his clients have closed and although DH knows there's money in savings, etc., they're holding onto it instead of paying for services rendered. That puts us behind paying for our expenses.

I'm sure this is happening across the board. Trickle down effect. Eventually banks, insurance companies, utilities all have to collect their money even if the government has extended payments a few months.

Re: Financial adjustments - corona

Shanus — Sun, 05 Apr 2020 16:11:06 GMT

@springers Oh, to answer your question more directly, heck yeah, we're having to make adjustments. Our retirement plans went downhill. Will they recover in time for DH to stop working? Who knows. My businesses only counted for supporting my business expenses, personal expenses and we worked it out as income grew, I'd also cover some household expenses. Well, we'll have to re-budget all that. I'm not buying anything that isn't essential. He isn't either. My luck, maybe yes or maybe no, he's also a financial advisor, investment counselor, etc., so knows too much and micro-manages.

Hey, anyone who says they're not affected by the economy is either full of BS or it just has not hit them hit yet. Words from horse's mouth. DH is my horse of reason.

Re: Financial adjustments - corona

kivah — Sun, 05 Apr 2020 19:34:14 GMT

In the past, I was BROKE too many times to count. Now I'm in a good position -- no mortgage pyt; no car loan, no credit card balances, etc. Growing up in the 1950s, we didn't have credit cards - so I rarely use mine. I've been retired a long time and I finally saved for a rainy day.

Hoping things turn around sooner than we expect -- and everyone goes back to work and lives a normal life.

Re: Financial adjustments - corona

Deree — Sun, 05 Apr 2020 19:43:28 GMT

I think we may all go into financial shock when this is over and businesses hike up their prices like you've never seen before.

Re: Financial adjustments - corona

CelticCrafter — Sun, 05 Apr 2020 20:02:34 GMT

The only reason we've cut back on spending is because there's no where to spend any $ other than the grocery store. We only go there once a week so aren't even using gas in the car.

Wanting to order a few things on line, the delivery times are ridiculous.

I went to Boscovs on line this morning wanting to order a few pair of jeans, well they not even listing the brand I wanted.

I did place an order for fabric the end of last week, she must be a one person operation because that's on it's way.

Re: Financial adjustments - corona

Firefly901 — Wed, 08 Apr 2020 00:45:15 GMT

That is great for you and your family. When I tell young people to work hard to pay off their mortgages and cars, they look at me like I am crazy. You can have a smaller house and a used car, but own them. To stabilize yourself you MUST own where you live and your transportation. Ownership as in you have the deed to the house, and title to the car. Then you can build wealth and play around with other things. After this mess we are in now, I am am sure some will see the light. It is a struggle but if you live way beneath your means during good times and in your young years, it will pay off in difficult times like these and as you grow older. Every generation has some kind of economic downturn. When the music stops you want a chair to sit in.

Re: Financial adjustments - corona

novamc1 — Wed, 08 Apr 2020 12:50:31 GMT

@Firefly901

Your post is among the best I've seen about what some people need to learn, have already learned or should work toward.

We're in a different world right now, and some will accept and adjust to it--or live through it-- better than others. And this might not be the only economic challenge they face in their lives, depending on their age.

Wish everyone now feeling pain of current circumstances had taken some steps to prepare for both "the best of times and the worst of times".

Too much debt can bring down the best of us.

Re: Financial adjustments - corona

gardenman — Wed, 08 Apr 2020 13:16:56 GMT

I think the economy will rebound fairly quickly. We're a consumer-based economy and right now consumer spending is still going strong. Some sectors will get hit hard, but by and large, I think things will rebound pretty quickly.

I tend to be something of an optimist, but when you look around, what services won't be needed after this? What products won't be needed? Everything we needed before this we'll need after this, so things should rebound fairly quickly.

Banks aren't demanding loan repayments on time (most of them anyway) and it's not like everyone will default on their loans. All lenders know the situation and most are being accomodating and letting you delay repayments. The jobs that were there before this will likely reemerge after this. As long as everyone works together and absorbs a little pain, this should be just a blip in the economy.

If the issue was only affecting the US, it would be a different story, but it's worldwide. Your 401K's should rebound in a hurry once things reopen. It'll quickly become a buyers market with rising stock prices and the stock market should return to previous levels, if not higher.

Even some of the diehard globalists are now saying we need to bring back more manufacturing for critical items, so if those industries come back, we could see the economy rocket forward.

Some are saying we're destroying the economy, but the economy is a lot sturdier than they give it credit for being. We're taking a short-term hit, but the long-term picture still looks pretty darn good. We just need to get through this blip and things will look a lot better.

Re: Financial adjustments - corona

novamc1 — Wed, 08 Apr 2020 13:50:15 GMT

@gardenman

Just don't forget how much of the rebound foundation is now being underpinned and funded with taxpayer money.

I don't know what the eventual impact will be, but the rebound probably won't be free and will come at a cost.

Headline from ABC news (and just about every other news source)...............

<<Treasury requests $250 billion more for small business relief

Tens of billions for loans were gone in a few days.>>

Re: Financial adjustments - corona

San Antonio Gal — Wed, 08 Apr 2020 13:41:53 GMT

Great post @gardenman .

Re: Financial adjustments - corona

FranandZoe — Wed, 08 Apr 2020 13:47:05 GMT

We pulled all the money out of our grandson's college fund (529) and put it in a 5 year CD. Lost too much since the end of December - afraid of losing more. He'll graduate in 5 years so it should work out.