Tips dealing with the Corona Virus if You Lost Your Job

Basic tips to help get you through the crisis

I came across an article that the corona virus could affect our daily life for the next 18 months. This is much longer than anyone expected as far as I know. But the chief executive officer of the Federal Reserve Bank of Minneapolis posed this question on a CBS interview Sunday morning.

Here is a clip of the video.

We are just started to get used to some of these unprecedented changes such as wearing a mask, school closures and businesses operating only with takeout and drive through. Some workers were laid off as businesses didn’t need a full staff. Then other businesses shut down temporarily but after these closures could some become permanent?

The Federal government has already started their stimulus packages for citizens, families as well as businesses.

If you made more than $75,000, your payment will be reduced by $5 for every $100 over this limit. If you made more than $99,000, then you will not get a stimulus. For couples this limit is $198,000 or more.

Parents with children under the age of 18, they will receive $500 per child with a maximum of two children.

With these stimulus checks, will they be enough for you?

Now with a possibility of the coronis virus going much longer, how will this affect you?

We really are living through challenging times.

So here are a few options for you to consider.

I. Do nothing

You can continue on with your life and hope this crisis ends soon.

Your day to day work routine may have adjusted but you got used to it.

It may suck but you tell yourself, this is just temporary and will be over soon.

2. Find a second or new job

With many businesses laying people off, finding another job may or may not be easy depending on where you live.

Many big box stores such as Walmart and Costco are hiring.

These stores are getting overwhelmed as products are flying off the shelf.

If you were laid off from your job, make sure you have enough in savings to hold you over until you really must find another job.

I mentioned having an emergency fund in this article here.

3. File for unemployment

As you may have heard, many people have filed for unemployment. This is good but this will not last forever.

Photo by Nathan Cowley from Pexels

Unemployment varies by state and can last up to 26 weeks.

Some states offer unemployment for a shorter amount of time.

So, you will need to check with your local unemployment agency to find out how long they offer these benefits.

4. You start a side hustle.

You have thought about turning your hobby into a business and this is the perfect time to do it. You have nothing more than time right now and use it to the best of your ability.

Many great companies started during tough times.

Some of these companies were:

General Electric in 1890

IBM in 1896

General Motors in 1908

Disney in 1923

Tollhouse Cookies in 1933

Burger King in 1953

Microsoft in 1975

CNN in 1980

Apple in 2001

There are many other companies, but these are a few that stood out.

You never know. You may have the next idea that grows to be as big as Microsoft or Apple.

5. Withdraw from your 401K and IRA

Recently, the requirements to withdraw from a 401K or IRA is allowed during the corona virus crisis. Individuals can withdraw up to $100,000 from their account.

There is no penalty and you will have longer to pay the taxes since the amount can be spread over the 2020, 2021, and 2022 tax years. Also, you can pay the amount back within three years, you can claim a refund on the taxes.

The amount withdrawn is allowed if you, your spouse or dependents are affected by the corona virus. Additionally, if your work hours are reduced, need to provide childcare, your business is closed or has reduced hours.

If you borrow from your IRA for a short-term period of less than 60 days, you can repay it under the 60 day rule and not have to pay any taxes for traditional and Roth IRAs.

Though we’re not halfway through the corona virus epidemic, many other issues can still happen.

Continue to take the proper precautions by wearing a mask, wash your hands, and not hang out with family and friends outside of your residence.

We’ll get through this but practice lockdown according to what your city recommends.