First of all, I am in no way an expert. This is just how we are preparing to deal with the potential struggles with the Covid-19 virus. There is so much uncertainty right now, but what we do know is that you WILL suffer financially. Some more than others. I am technically in the healthcare industry, but I work for an anesthesia group that does mostly elective (unnecessary) surgeries. Since most of the ambulatory surgery centers are temporarily closing, there is a possibility that I could be out of a job (hopefully temporarily) until everything comes back to normal. Not to mention, Brian works on base. If the base decides to keep all “nonessential employees” at home, we could be in a lot of trouble. Like most Americans, I always knew we should be saving more money for a rainy day but was so concentrated on paying off debt that that is where any extra money has been going. Now, I am really wishing I had listened to my grandmother (who lived during the Great Depression) and kept a stockpile of money under the mattress. Lesson learned for the future, but for now this is what I have done to try and get ahead of whatever happens next.

Our “debt snowball” is being redirected to savings.

We are in survival mode. All extra money that typically would be sent to debt is going straight into saving. We are both still working right now, and the kids’ daycare is still open, but we are realistic in looking at the near future. I do expect us to be at home (possibly with less/ zero pay) for a period of time. We are also heeding the warnings about social distancing. We are not browsing Target like before, so coincidentally we’re not wasting money on frivolous things. Yep, I’m just as guilty as the next person with Target. We are trying to stockpile as much cash as possible, just in case.

I have called all of our financial institutions.

This is the most important thing to do RIGHT NOW! Yesterday, I called everyone we owe money to and told them that I expect to lose my job in the near future and asked about deferments. Deferments are just postponing payments. For example, I have my car financed through VyStar Credit Union. They offered me a three month deferment without interest. In normal situations, most places will want you to at least pay the interest on your loan during a deferment but given the current circumstances, a lot of places are waiving that. The three months worth of payments that I am “skipping” are being added to the end of the loan. That’s it.

Now, the mortgage company was a little different. We have our mortgage through US Bank. When I called, the representative was very kind and helpful but she did state that they are only offering a three month forbearance, to start. With a forbearance, you are expected to pay the three months worth of payment at the end of the three months. For example, let’s say your mortgage payment is $1,000. If you do a three month forbearance starting in March, they expect you to pay $4,000 in June (which would include June’s payment). The rep that I spoke to said that they are expecting that most everyone will not be able to pay the full amount, in which case you are instructed to call them in June and negotiate a payment plan. This could be paying a little extra each month until it is paid off, or them simply adding it to the end of your loan (deferment). It is understandable that the mortgage companies have to start with a forbearance with the off chance that some people may be able to pay the accumulated payment in full. They are a business, after all, and they are about to be overwhelmed with unpaid loans. She did state that they are absolutely willing to work with everyone’s specific situation. Side note: She told me to stay safe and not worry so much about money right now. That this is a very serious situation that she has dealt with first-hand. I got the feeling that she had someone close to her who was sick but I didn’t want to pry.

Luckily, we have not been laid off as of yet, so my current plan is to take the money that we would have paid on these bills and put it directly into savings. Obviously, during these times we will chose buying food for our family over paying on a credit card. The entire country is going through this same thing. The banks will just have to deal with it. Keep the cash for your immediate needs.

Since utilities (electricity, water, cable, phone, etc) are not considered a loan, you can’t exactly defer payments on them. However, most of these companies have stated that they will not be disconnecting service for missed payments during this time.

I stocked our freezer.

When I heard about this virus in China and how volatile it really was, I knew it would make it’s way here. When Italy started their lockdowns, I realized just how severely it was affecting people. No, I’m not one of these ridiculous people that have stockpiled 47 packs of toilet paper like it’s the apocalypse. But with the possibility of either one of us (or both) having to go with out a paycheck for an uncertain amount of time, I started buying a little extra meat with each shopping trip and putting it in the freezer. Target has large packs of chicken breasts (8-10 breasts) for around $9-$10. I split them up and put them in freezer bags. I also got things like bags of frozen chicken nuggets, pizza, hot pockets, and other things that my kids will actually eat, with the knowledge that I could end up quarantined at home with the kids, without income for an unknown length of time. I’m not so much afraid of the shelves running out as I am us not having the money for groceries. The trick now is to leave that food alone and go about daily life and keep grocery shopping as normal so that the freezer stays stocked. Again, just in case.

I fill my gas tank constantly.

With the gas being as inexpensive as it it, you should keep your gas tank full. There may come a time where you can’t afford gas. It’s extreme, but possible. If you have any portable gas cans, might as well fill those up, too. Just so you have a back up.

Please Remember…

We are living in an unprecedented time. This has never happened in our country to this scale and everyone is uncertain and afraid. Be kind to people when you call to negotiate deferments. The people you are speaking to are just trying to do their job, while knowing that they too might be unemployed soon. Everyone is scared. But we are still Americans and Americans come together to help each other in times of crisis. Be kind to people (6 feet apart!) if you do go out. If you have an elderly family member or neighbor, offer to pick things up for them if you are going out. We’re all in this together. Most importantly, our kids are watching us. They hear the stories on the news and other adults talking. They are looking at you to decide if everything will be okay. Don’t keep them in the dark. Instead, explain to them what is happening and why. Let’s be honest, this time is going to be etched in their brain as a pretty permanent memory. They may be canceling the remaining school year. Can you imagine if that had happened during your time in school? It’s a big deal! This could even be in upcoming history books. Who knows?! Try to make the most of this time home with your kids. Be fun and silly. Do your best to create new memories. Don’t stress too much about putting them on a rigorous homeschooling schedule. Remember, we’re in survival mode.