You don’t need me to tell you that this country is upside down right now. There has never been a more important time to think clearly and adapt to the current situation. With 40 million unemployed and another 10 million not seeking work, many are in a “financial” survival mode. One in three Americans have yet to receive their unemployment checks! Most advisors suggest keeping an “emergency fund” of 6 months income. Even for those who have heeded the advice, the six-month fund is dwindling as New York City has been slow to reopen.
The way unemployment is structured, with the Federal Government adding $600/week in addition to the state unemployment benefits, can be a deterrent to employees returning to work. In New York State, the maximum is $504/week plus the $600= $1,104/week. This could represent a raise for many, so why go back to work when you can stay home and possibly earn more money? New Jersey caps out at $681/week, Connecticut at $649. Florida has the lowest cap at $275; however, they have no city or state income tax. The highest cap is Massachusetts, which has a range of $769-$1,220 depending upon the eligibility. These numbers don’t mesh well with the Paycheck Protection Program (The Triple P), because business owners have to spend the money now over the next 8 weeks when their employees refuse to return to work.
The public knows this “generosity” won’t last forever, so many are tightening up on their spending. If you’re on a salary, you can’t increase revenues, only decrease expenses. Here are a few tips to reduce expenses:
Be Safe and Wash those Hands!