Dallas Gutierrez has over 22 years experience as a financial professional. She previously worked as a consultant for banks during the days of buyouts and restructuring. Ms. Gutierrez now spends her time educating people financially. A resident of Galveston, she is a broker for PHP Agency, a financial marketing organization.
Over the last four months, over 36 million people have filed for unemployment and the job security people felt they had in their jobs ceased to exist. What makes matters even worse is that, according to CNBC, only 41% of Americans would have $1000 in savings to help with an emergency. Another area of concern is what is to come of the stock market and the nest egg that so many people have worked for their entire lives. Today the concern for many is “will I get called back to work?” Others have taken action and found work, some are even working two jobs but is it enough? Ask yourself a question, What would happen if you faced another lockdown or recession? Job layoffs, reduced hours at work and/or decrease in income lends to the question “where does that leave you financially?” Sadly, the bills do not stop coming in, families still have to eat and you no longer have benefits to cover medical expenses.
Ask yourself now before it happens, what’s your plan?
So what is your Plan B now that the government stimulus checks proved to be a Band-Aid and with many now running out of unemployment? Living in a country where many of us have been told to go to school, make good grades, get a good job and hope to retire one day. I, too, bought into this but I found that one main lesson was left out: The idea of educating us on the one thing we will deal with our entire lives and that is MONEY. Today is a good day to start making better plans for you and your family’s future.
It is now more important than ever to be prepared. Some people who experienced the large stock market losses in 2008-09 are possibly fairing better than those who have not been through a major loss financially. Some things we have to do is re-prioritize what is important. We rely on our jobs for income, benefits like dental, vision and health coverage. We rely on life insurance through our employers in many cases but as many have experienced recently through layoffs and furloughs, these benefits cease to exist. Sadly during this pandemic we lost many lives and many were laid off and no longer have life insurance. If a family member becomes ill or tragically dies, that becomes a liability for the surviving family members.
One action can change this: purchase and carry your own policy outside of your employer. You must be in control of things that matter to you and your family because your job is not coming to the rescue. Today, insurance companies can actually protect against COVID-19, but you must put the policy in place before one is diagnosed.
One step you can take is to make sure you are paying yourself; many people make good money but are still living from paycheck-to-paycheck. This does not allow for 6-to-12 months of monthly income to be set aside for an emergency. It is important for you to plan for emergencies because they happen. Another major concern that I personally see is the lack of planning for retirement. Many of the people I see do not even have it on the radar until their late 30’s and early 40’s, which means they have lost years of saving for their future. Retirement is something many people look forward to and dream about having fewer financial responsibilities, therefore people look to enjoy a comfortable life in retirement. We are seeing many retirees return to work because the social security check is not enough and fewer and fewer companies pay out pensions. Companies are switching to 401K’s and if you do not start early in your career to contribute, you fall behind. Then a surprise for many is that you have to pay taxes on the withdrawal of funds.
We also see that many self-employed individuals typically do not plan on setting aside funds for emergencies or their future. We see people making good incomes but spending to keep up with the Jones’ but what does that really accomplish? If it’s not putting more commas in your personal funds, is it smart? We would see many more people retire earlier and better if they actually paid themselves rather than spent their retirement during their income earning years.
There is one other option: getting a side hustle that can help create an income; not the traditional second job, but rather one where you control your time and you are in charge of the money you make as there is no income cap. The government is thinking of issuing another stimulus, but what are your plans?
If you know of people that are looking to be in charge of their time and increase their income, we are currently in search of strong work ethic, clean backgrounds, funny and driven individuals and couples. We are helping individuals and couples create an income around their schedules and help them see there is a way to be their own boss and work towards their goals and dreams rather than contributing to their employers dreams. Please let interested parties send an email to phpdallas54@gmail.com
