Smart Money Podcast: Coronavirus Edition

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Smart Money Podcast: Coronavirus Edition
by Liz Weston, CFP(r) Senior Writer | Personal Finance, credit scores, economics Liz Weston, CFP(r) is a personal financial columnist, host of"Smart Money," the "Smart Money" podcast an award-winning journalist, and the creator of five novels on finances, which includes the bestseller "Your Credit Score." Liz has appeared on numerous radio and national TV shows such as the "Today" show "NBC The Nightly News,"" the "Dr. Phil" show and "All Things Considered." Her columns are carried by The Associated Press and appear in hundreds of media outlets every week. Prior to NerdWallet, she was a writer articles for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She lives in Los Angeles with a husband, a daughter and a co-dependent golden retriever.




as well as Sean Pyles Senior Writer | Personal finance, financial debt Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet's "Smart Money" podcast. In "Smart Money," Sean talks with Nerds from the NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and actionable financial advice, Sean provides real-world guidance that can help consumers better the financial situation of their lives. In addition to answering listeners' financial concerns on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments on topics such as the racial gap in wealth, how to start investing and the background of college loans.
Before Sean lead podcasting at NerdWallet the company, he also wrote about topics concerning consumer debt. His work has appeared on USA Today, The New York Times as well as other publications. When when he's not writing about personal finances, Sean can be found digging around his garden, taking runs and walking his dog for long walks. Sean is located within Ocean Shores, Washington.





Mar 23, 2020


Edited by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, financial management and debt Kathy Hinson leads the core personal finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years working at The Oregonian in Portland in roles including copy desk chief and team director of design and editing. Previous experience included copy editing and news for various Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in mass communications and journalism from the University of Iowa.







A majority of the products featured here are provided by our partners who compensate us. This influences which products we review and the location and manner in which the product appears on the page. However, this doesn't affect our assessments. Our opinions are our own. Here is a list of and .



The NerdWallet Smart Money podcast, where we will answer your real-world financial questions within 15 minutes or less.
This week's theme is the coronavirus pandemic and how to brace financially in case of a consequences.
Know where every dollar is going to
Find ways to spend your money on things you enjoy, and less on the things that you don't.






Our perspective
The financial impact from the coronavirus novel as well as COVID-19 that can cause will be devastating, with lots of people losing jobs or having their hours cut when the economy slows. It might be too late to scratch together an emergency fund of three months but it's prudent to reduce your spending if possible and reserve an amount of cash to allow yourself a little cushion.
The ability to access credit can be helpful during a emergency, but also. People with good credit scores may be able to open credit cards with a 0% teaser rate. For those who do not have good credit may want to take out payday loans, but those aren't cheap and can be extremely expensive. Look instead for . Think about other community resources, like The Jewish Free Loan Association.
If you can't pay all your bills, make sure to prioritize the most important things like shelter utilities, food, and transportation. Check with your lender to determine whether hardship programs are available.
The economic crisis has also been a major influence on the market for stocks and has caused wild swings because of all the uncertainty in the economy. If you're 10 years or more away from having to use the money you've put in -- for instance, if retirement is longer than 10 years away in the case of a hypothetical example, you can treat the gyrations in the background as a sound. If you're closer to retirement or already in retirement it's possible that you'll . This is the perfect time to talk to a fee-only, fiduciary financial planner for a second opinion about whether your retirement plans and allocation of investments remain sensible.
Of course, everyone's travel plans have been disrupted. Usually, insurance doesn't cover this kind of disruption, however .
Our tips
Focus on what you manage, not what you can't. It's essential to keep yourself well-informed, but be careful not to take too much of the bad news. You should consider limiting the time you spend on news feeds.
Prioritize your bills. If you're unable to pay your bills in full pay for the necessities such as food, shelter and utilities, as well as transportation.
Make a long-term investment. The stock market will slow down and then rebound. If the end goal for your investment is more than 10 years into the future, you can avoid the daily fluctuations.
More information about coronavirus is available on NerdWallet:
Have a money question? Text us or call us at 901-730-6373. We can be reached via email at . To listen to previous episodes, visit the
Episode transcript

Sean Pyles: Hello and welcome to NerdWallet's Smart Money Podcast We will answer your money-related questions in 15 mins or less. I'm your host, Sean Pyles.
Liz Weston: And I'm Liz Weston. As always, be sure to contact us with your money questions. Contact us by phone or text at (901) 730-6373. That's (901) 730-NERD. Contact us via email at
Sean The host of this episode is Sean we're going to tackle a subject that we've received lots of inquiries about over the past few weeks: coronavirus, and how to prepare your finances for its. The effects of the novel coronavirus as well as the COVID-19 virus which it causes are being felt in our economy. Many employees are seeing their hours reduced or being laid off. The stock market is having an upswing and people are trying determine how to prepare for the worst, and that means shoring up your finances and for some people doubling the amount of toilet paper in your home.
Liz: Sean, you claimed that you thought it was a joke, but you found it's not.
Sean: I went to the store last evening and found that there were no shelves.
Liz: Yeah.
Sean: I'm glad that I have one of those Amazon subscriptions that I just get something regularly because otherwise I'd be looking for napkins. Who knows? It's a serious issue. Many people are really anxious right now and many are going to be in a very difficult financial situation.
Liz: So in this episode of the NerdWallet Smart Money Podcast, we'll discuss ways to prepare your financial and mental health in the event that you can't pay your bills and why it's an ideal time to learn patience with your investments.
Sean"Sean": Okay, let's dive in.
Liz: Let's begin with the mental preparation part , because I feel this is taking a lot on people in ways they weren't expecting.
Sean: Yeah.
Liz Sean: Sean is there something wrong regarding you?
Sean: Well, I'm sure I'll fall down a news hole whenever something like this happens. For me, this means only looking at Twitter as well as listening on the radio, and getting completely caught up in these moment-to-moment updates and that actually makes me feel nervous. I suppose I do this in order to get back some sense or control. However, I'm actually being exposed to events that I can't actually control. And I think that most people are feeling similarly anxious because this is a serious issue and there's lots of uncertainty. One thing I believe is beneficial to think about is to recognize their anxieties and not obsess over the things they aren't able to control. Instead, concentrate on what you are able to manage, such as how often you're washing your hands or the type of news that you're consuming and the cadence of the news you consume.
Liz: I think that putting some limitations on it is really intelligent. I mean, you want to be a prepared citizen, and you need to be aware of what's going on however I believe that we all reach a point at which it's excessive.
Sean: Yeah, and I really like doing things that cause me to appear to have some form of self-control, like this. I deleted Twitter off my phone . I added an extension to my browser to make it so I can only view it for five minutes a day. So, whenever I feel the need to check out something that interests me, I'll go to an information site and not simply scrolling through the feed of people screaming into the darkness. Find a way to make it so that you're moderating the content you're reading because it's very easy to get very worked up about this kind of information.
Liz: Yeah, absolutely.
Sean I think you're great mentally, however there are plenty of things that you can do financially to be prepared for an event like this.
Liz The other day I was thinking about the experience of going into a supermarket store and seeing there are no shelves and you realize that it's way too far too late to get ready today.
Sean: Mm-hmm.
Liz: So there's an amount of work you have to do. For instance, if you've been living from paycheck to pay, and recently got fired, I could advise you to keep an emergency fund for three months, and it's like, "Well, that was very beneficial." That's why, even in the event that you do have a job, and if you are still working, you need to be mindful when it comes to spending. You might want to put a little more cash aside. And we at NerdWallet haven't been big in putting your emergency fund first because there are a lot of other financial priorities that have to take place which are more important over the long term. But we do want you to have an emergency fund -- $750, $1000, anything that gets you out of that paycheck to paycheck trap that it's extremely easy to fall into. If you've got it you're doing good for you. If you're in a position where this is coming a little too early, we've alternatives for you.
Sean The subject is one that I was thinking about , too. A lot of folks realistically live paycheck to paycheck. They don't have an emergency fund and, in the present time- especially in the event that your hours have been cut this is the time you would want to tap the. So one thing that I'm thinking about right now is I know that a lot of folks will be using their credit cards, and in the event that you don't have savings I think that now might be a good time consider applying for a zero-interest credit card that could provide a short-term cash reserve. While we generally don't recommend taking on the realm of debt, but if you need a bridge to cover expenses right now, this could be an alternative. Be sure to complete all of your payments in time to ensure your credit stays steady and that you plan to get out of that debt before that 0 APR period ends. Because these cards are all credit cards, your APR period will typically be between 12 to 15 months and after that , interest rates could increase at 15% or more. Therefore, be aware of this.
Liz Also, there are some alternatives to payday loans. When you search for payday loan alternatives, some of these will show up and are similar to charities. I'm sure the Jewish Free Loan Association is on the market telling people, "Hey, we've got cash for those who need it." There are grants for short-term projects that are a possibility. There are food banks. There are people looking to help in a variety of ways. So there are alternatives in place of taking out a payday loan. Payday loans are really scary.
Sean: Right.
Liz: People borrow the money and they get stuck in a bind that they aren't able to pay back when payday comes and they just wind up owing, owing, due, and then not being able to dig themselves out. So if you're thinking of one of these loans, look for alternatives.
Sean: Now is the perfect moment to check out your community to see what resources are available. This is the time of year when many of these non-profits or local communities are getting into high gear, because they've been working on. They're there to support you. But resources aren't unlimited and it can get really hard when you do lose your job, as the majority of people, particularly in the service industry, are currently experiencing. In a couple of weeks they'll realize, "Hey, I can't pay all my bills right now." So I want to talk about that with you, Liz as this will be really hard, it's going to impact a ton of people. And Liz I'm aware that you've written an article that was titled "How to Pay Your Bills When You aren't able to pay your bills." So what would be your advice here?
Liz Sheryl: You must do triage, which means you have to put the most important items first. That's the most important things. That's the food you eat, the shelter, the roof that covers your head, lighting heating, transportation if you need to get to work or you need to go to the doctor or whatever it is. That's the basic things you need to safeguard regardless of. It is crucial to remind people because when they are in the process of falling in arrears with their bills the collectors begin calling them and they are in a panic, and they will pay whoever is being the most rude. It is essential to prioritize your family and yourself first, and pay for the most important things. And then after that you do a triage again on the other charges. Which ones are the most severe negative consequences of not being paid? What ones allow for some flexibility? Students loans as an example typically have some kind of deferral or forbearance that allows you to get away with not making payments for a time.
The lenders are generally a lot more responsive in difficult times, allowing people to change their payment plans, delay payments or something similar to that However, you have to be in contact with them. You have to talk to them. If you simply stopped paying, you could have missed out on some kind of program that could benefit you, and could affected your credit score for no good reason.
Sean: Yeah, this could be among those things that you must complete the work before the deadline. However, one thing I've been very pleased to see in the past week is that lots of the creditors are actually putting out programs to get ahead of this and they're saying, "Hey, we realize that things aren't easy in the present. If you're not able to pay your bills then give us a call." But you have to make that call.
Liz: Yes, absolutely. In another podcast, we talk about the best way to pay the IRS if you can't be able to pay IRS. So, that's the other issue that people are wrestling with. If you're facing a tax bill that you can't pay, again there are options for payment, so don't hide from looking for them, but they could be a huge help.
Sean He wants their money and want to be able to collaborate with you and have an enjoyable rapport with you. So it takes being proactive, which is yeah, probably not something you'd want to be doing when fighting an illness and worry about getting some horrible illness. It takes around 10 minutes. You can give them a phone call and attempt to figure out the details because the one thing you do not want to do is go into default, which will ruin your credit score. This can make things more difficult for you in the future, in the event that you require an additional line of credit.
Liz: Exactly.
Sean: The other thing I want to turn to right now is people's investment portfolios. There's been a lot of worry about retirement accounts. We've seen the market plunge in the past couple of weeks. I'm curious about how people should approach this, and what to do if they're considering taking a complete and total withdrawal.
Liz: What's happening now with the stock market and the reason it's so volatile is that the people who do the trading as investors, also known as the traders, look ahead, saying, "This is going to affect the economy, but we don't know how much." The stock market is averse to uncertainty , which is why you're seeing it go around the globe. If you're not planning to retire today, then this is just the same as noise to you. What's happening from day and month-to-month, does not matter. What matters is what happens over the long term, over the next 10, 20, 30 years. We have the ability as human beings and as a nation in bouncing back. Therefore, in the long run our prospects are great and I'm planning to remain in the game and try not to pay any attention to the noise. If you're planning to retire and you're looking to retire, that's a different story. Go to an independent, fee-only, fiduciary certified financial planner. Have another objective eye on your retirement plan to be sure that it still makes sense.
Sean Sean: Okay, well it makes sense. This is one of those situations where you need to control what you're consuming so you don't get into a panic state where you end up pulling out your investments that could cause harm 20-30 years later.
Liz says: What we noticed, which was extremely interesting, was that many people jumped into markets. We had lots of people visiting the site when the stock market went down the first time, and I think there were a bunch of people who were sitting around going, "OK, here's my opportunity to buy." And then the floor fell out from underneath them and they're all like, "Agghhhhh." It's all part of being an investor. these things happen and we've experienced bear markets before, we've had major corrections before. The market does bounce back. For those still sitting on the sidelines it's like, you're not likely in time to see it happen before it begins to increase, and when the market does begin to recover and does extremely fast, which means you're going to miss most all gains.
Every financial expert that is of a high standard will advise you to keep going, create an asset allocation, make sure your investments are in good shape and try not to take a look.
Sean Take a moment to turn off the TV and read the book.
Liz: Exactly.
Sean: Go ahead and put on some popcorn. It's all right, fantastic. Another thing I'd like to discuss is travel plans. Many people do not want to travel at the moment, but maybe they have plans in place to travel towards Machu Picchu or who knows where. However, the good news is that lots of airlines are actually offering arrangements and are not charging cancellation charges, however the policies are changing frequently it seems. So we actually have a link on our show notes post at nerdwallet.com/podcast to an article that is just regularly updated with different airlines' cancellation policies. So if you have travel coming up, make sure to check it out and ensure that you are taking an proactive approach to managing any plans you may have coming up.
Liz The writer: I'm kind of stunned since we've lived with these dreadful changes fees, non-refundable deposits as well as finger shaky, and to see all these travel agencies acknowledge this fact is amazing and like yeah, at least they're doing that.
Sean The Sean. I believe that's the only thing we can do. If you're anxious, perhaps a little financially uncertain and unsure about their finances, you're not alone. However, know that there are some ways to make this difficult moment a bit more manageable. Let's get to our takeaway tips. In the beginning, concentrate on the things you control, not what you aren't able to control. If you are unable to pay your bills on time pay for the basics: shelter, food and utilities, as well as transportation. Finally, in the event of major market volatility like what we're seeing right now, focus on the long term , and avoid the day-to-day fluctuations.
This is all we have for this episode. Do you have a question about money that you'd like to ask? Ask the nerds. send us a text message or call to (901) 730-6373, which is (901) 730-NERD. You can also contact us at and also visit nerdwallet/podcast for more information about this episode and remember to follow us on iTunes, rate and review us wherever you're getting this podcast.
Liz Here's our brief disclaimer carefully crafted by the legal team at NerdWallet. Your questions are answered by knowledgeable and talented financial writers, however we are not financial or financial advisors. This information is intended for general educational and entertainment purposes and may not apply to your specific circumstances.
Sean: And with that said, until the next time, you can turn to the Nerds.










The authors' bios: Liz Weston is a columnist at NerdWallet. She is a certified financial planner as well as the author of five books on money including "Your Credit Score."


Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His work has been published in The New York Times, USA Today and elsewhere.







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