A big fear through all of this is FINANCES. It’s scary…whether you’re a freelancer or have a corporate job. There are definitely things we can do to survive financially through COVID19 and I asked Dally East, Executive Money Managers (and our Accounting/Financial Workshop leader), practical things we can do. Here are her tips… A few tips that we are recommending to clients and friends/family – these recommendations are of course not long term financial guidance, but these steps are actionable right now until we stabilize.
In a general direction: having enough liquidity (cash in your bank account) to cover necessities is key!  1. Set up easy access to a minimum of 30 days living expenses. Temporarily pay the minimum on debts (credit cards, car loans, home loans, student debt, etc.) Normally, we want folks to throw as much money at debt until it is gone.  2. Once the 30 Day goal is met, then split the financial plan into two parts. 

a. Use half to add to the emergency fund until 90 Days is saved. 

b. Use the other half to prepare for the long term future. (Retirement Accounts, Investment Accounts, Passive Income, etc.) 

3. If people are contributing to a 401k or other retirement account, pause this contribution until they have 30 days of cash/bank account funds saved up. 
 4. Review all spending to really decide what can be paused during this time.Examples include: color your hair at home vs. going to the salon, make meals in your own kitchen with items from the grocery store vs. Meal Delivery Kits (Blue Apron, Hello Fresh, etc.) Although these modern conveniences are wonderful and time saving in some areas, the best strategy is do as much yourself as possible especially during these times. Just as on the airplane, you must make sure your oxygen mask is in place before helping others. 

All of these recommendations are for the short term crisis we are in as a country. These are not the best strategies for achieving long term financial success. Once the economy opens up again, be EXTRA generous with all aspects of your life. Leave a bigger tip when you do eat out. Tip people you wouldn’t normally tip (house cleaners, the kid that cuts your grass, dry cleaners, etc.)  As an aside, the Hubbards and former Hubbards firmly believe that even during this difficult time, we are still making our various charitable contributions. We would personally rather cut back on living expenses vs. cutting back on charitable contributions. It is easy to be generous in the good times, but we believe we must help in the hard times as well.  

Dally East
Executive Money Managers 

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