Let’s face it, for many of us the pandemic rapidly changed our lives. Most kids are now home schooled, and even that changes as the virus changes. In many states there is no firm timeline about when and how students will return to in-person public schooling. Many of us went from having no time due to commuting and overtime work, to being thrown together with our spouses and partners on a full-time basis. At first, stay at home orders ranged from a few weeks to indefinitely. Uncertainty led to confusion and people thought they would be back in the office by summer, then fall, then certainly by 2021. Here we are, February 2021 and we are still mostly working from home, and still home schooling. The timeline keeps moving. In the past, as advisers we recommended scheduling a date night to discuss finances. Being together 24/7 changes that paradigm.
Higher wage earners who work in professional services or any type of work-from-home job tend to have fared better during the pandemic. Some people have seen their finances actually improve and their savings rate increase during the pandemic. Several factors play into this from not commuting, not spending money at lunch, reduced casual shopping, and savings on clothing purchases and personal care services. Throw in COVID relief payments, special bonuses, and other rewards programs from employers and you have households that have improved financially. Admittedly, others have not fared as well. Those who had jobs tied to the service, hospitality, or travel industry have been particularly hard hit. For them, relief payments have been a lifeline and employers have not been as generous with bonus pay and rewards programs.
Housing, too, has changed. We are seeing rents and sales prices for homes increase in rural and suburban areas, and decrease in core cities. Again, this is also a Tale of Two Cities situation. Those in the higher earning arena are doing fine. Some are taking advantage of the low interest rates to refinance, others are buying second homes, or remodeling their current residence. But for our lower earning neighbors, they are struggling to pay rent, having to find alternate housing, or falling behind on mortgage and rent payments. So, what to do about that financial date night?
First, even though date night in general has changed since most of us are together EVERY night, we still need to have financial date night. The pandemic has forced rapid change and coasting along as usual with our old financial plan might not cut it. Whether your financial situation is a little more flush from the pandemic, or your finances have literally been flushed due to the pandemic, you need to schedule that financial date night. The purpose of this financial date night is to make sure you are on the same page, and that you are sharing information, setting and tracking goals, and working together. This is more important than ever due to the changes wrought by the pandemic.
I gave you Five Tips for Financial Date Night way back in 2019. Remember, back in the before time, in the good old days? Here are some revised tips for a pandemic financial date night.
Schedule it. Even though every day is now blursday, you still need to get it on the calendar. Make your financial date night a real thing. Be sure that you both agree that this date night is to focus on your finances and not binge some more of your favorite series.
Pick your topic in advance. It is a good idea to sit down together, draw-up a topic list, and decide in what order you would like to cover the topics. You may wish to start with your most pressing matter first. By deciding the topics in advance, you have opportunity to think about the issues, do some research, and be prepared when have your financial date night.
Keep it civil. Financial date night is not the time to fight over money! The purpose is to address financial topics together, to work on solutions, find answers, and exchange information. It’s not the time to argue, or make accusations. If you find your discourse becoming heated, cool things off with a break, or go to separate corners and write out why you are becoming agitated. Then come back together and allow each person the chance to read out their recorded emotions and feelings. Don’t interrupt one another.
Record your progress. Keep a special financial date night journal. Record your ideas, decisions, timeline, and any new goals that are discussed or set. If you set a new goal, calendar it and be sure to act on it and put your new goal in action.
Set a timeline. If you find you are doing better financially, you may need to adjust your timeline for your goals. You may reach some of your old goals sooner. If you find you are struggling and your income source is gone and cash is running low, you need to accelerate your action plan. That is, start making the hard decisions; what to eliminate, what to reduce, what about alternative housing options? In either situation, review and revise your timeline.
Barefoot Wine & Bubbly created this fun date night box!
Make it fun! Your financial date night is not supposed to be a dreary ordeal. So, open your favorite wine, beer, or make a cocktail to go with the conversation. Serve your favorite snack, or order from your favorite restaurant. Granted, if your situation is dire, making it fun is not realistic. But you do need to address your situation, and have an action plan.
Just because the pandemic has wreaked havoc with our social lives and our goals, we don’t need to let it totally derail us. Eventually, we’ll discover our new normal and we need to be ready for it. If you are in the lucky situation where the pandemic has actually been good for your finances, figure out what you want, or need, to do with the extra capital.
If, unfortunately, you are not in the best situation and you are running out of money, you have to deal with it. You need an action plan sooner, rather than later. Find out what you can do to alleviate the cash crunch. Have a plan for where you will go if you lose your housing. Find out what community resources are available to help you. One thing you can do, is read through my COVID-19 You Can Do It! Pandemic Survival Guide. It has tips on budgeting, community resources, and employer benefits. It’s free, why not at least give it a try?
As an independent CERTIFIED FINANCIAL PLANNER™, I can help you plan for the unexpected. Contact me and let’s get started! #talktometuesday #education #Hireaplanner #stressfree #COVID #pandemic #savings #CFPPro #datenight