5 Steps to Take If You Experience Financial Difficulty During COVID-19

DEWITT, Mich. - Aug. 26, 2020 - PRLog -- The financial impact of COVID-19 is being felt by many people in the form of salary cuts, reduced hours, and lost jobs. In times of financial stress, it's understandable and common to feel overwhelmed. Knowing your options and focusing on a few key strategies can help keep you on sturdy footing and feeling in control. If you are facing financial difficulty, address these key strategies in order:

1.  File for unemployment benefits or short-term compensation if you qualify
2.  Review your budget, identify essential needs, and look for things to cut
3.  Explore assistance programs to help cover essential expenses
4.  Consider other potentials sources of money you may have
5.  Get financial guidance from a professional

Unemployment Benefits: File for unemployment as soon as you're eligible if you have lost your job, been furloughed, or are unable to work because of quarantine. Your state will have an unemployment website with an application process and contact information to answer questions.

Short-term Compensation: If your work hours have been reduced, short-term compensation may be available to help you. This allows you to access a portion of your unemployment benefit if your hours have been reduced.

To make sure you're focusing any money you have on where you need it most, identify your most essential needs and look for areas you can trim or cut spending.

If you have concerns about your ability to meet your essential needs, there are new assistance programs that may be available to you. It's important to understand which options are available to you and the specifics of each program.

If you're still having trouble meeting your essential needs, you may want to consider utilizing various forms of savings you may have accumulated. We recommend using these accounts in the following order:

• Spending cash on hand or in a checking account
• Using emergency funds like a savings account, money market or certificate of deposit
• Selling investments from taxable accounts, drawing first from cash in the account, then investments with losses and lastly investments with gains
• Considering the relative costs and benefits associated with taking on debt like a home equity line of credit versus withdrawing from tax-advantaged accounts like an individual retirement account.

One of the biggest misconceptions about financial advisors is that you should have your finances in order before meeting with one. But financial advisors are especially useful in helping you navigate difficult financial situations. If you would like help with the previous steps, work with your local Edward Jones financial advisor to determine the course of action that is best suited for your unique situation.