Smart Money Podcast: Coronavirus Edition

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Smart Money Podcast: Coronavirus Edition
Written by Liz Weston, CFP(r) Senior Writer | Personal Finance economics, credit scores, Liz Weston, CFP(r) is a personal financial columnist host of"Smart Money," the "Smart money" podcast, award-winning journalist and author of five books about money, including the best-selling "Your credit score." Liz has appeared on many national radio and television programs including"Today," the "Today" show "NBC Nightly News," as well as the "Dr. Phil" show, as well as "All Things Considered." Her columns are published through The Associated Press and appear in hundreds of media outlets each week. Before joining NerdWallet, she was a writer for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She shares a home in Los Angeles with a husband along with a daughter and a co-dependent golden retriever.




as well as Sean Pyles Senior Writer | Personal finance and credit Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet's "Smart Money" podcast. On "Smart Money" Sean talks with Nerds across the NerdWallet Content team to answer the listeners' questions about personal finance. With a focus on thoughtful and actionable money 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 who are not part of NerdWallet and also creates special segments on topics like the racial wealth gap as well as how to get started investing, and the history of student loans.
Before Sean took over podcasting at NerdWallet He also covered issues related to consumer debt. His writing has been featured in USA Today, The New York Times and other publications. When Sean isn't writing about personal finances, Sean can be found digging around the garden, taking walks, or walking his dog for long walks. He lives at Ocean Shores, Washington.





Mar 23, 2020


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







The majority or all of the products featured here are from our partners, who pay us. This impacts the types of products we write about as well as the place and way the product appears on a page. However, this does not influence our evaluations. Our views are our own. Here's a list of and .



The NerdWallet Smart Money podcast, where we will answer your real-world financial questions in just 15 minutes or less.
This week's topic is the coronavirus pandemic and how to prepare financially for the aftermath.
Be aware of where every penny is going to
Discover ways of spending more on things you enjoy and less on things that you don't.






Our view
The financial impact associated with the new coronavirus and COVID-19 that is causing it are likely to be profound, with many individuals losing their jobs or having their hours cut as economies slow. It might be too late to put together an emergency fund for three months however it is wise to cut back on your spending whenever possible, and to save money to provide yourself a little cushion.
Having access to credit could be beneficial in times of crisis, as well. If you have a good credit score, you may be able to open credit cards with a 0% teaser rate. If you don't have great credit might be tempted to get payday loans, but those can be ruinously expensive. Look instead for . Look into other community resources for instance, the Jewish Free Loan Association.
If you can't pay all your bills, you should prioritize the essentials such as shelter as well as food, utilities and transportation. Ask your lenders what hardship programs are available.
The financial crisis has also been a major influence on the market for stocks that has experienced dramatic swings as a result of the uncertainty in the economy. If you're 10 years or more from needing the money you've put in (if your retirement is more than 10 years away, for example -- it's okay to treat the volatility as background noise. If you're closer to retirement or already in retirement, you may . It's a good idea to talk to an unpaid, fiduciary financial planner to get a second opinion about the extent to which your retirement plans and investment allocation remain sensible.
Of course, everyone's travel plans have been disrupted. often doesn't cover this type of disruption, however .
Our tips
Make sure you focus on what you can control, not what you cannot control. It's essential to keep yourself up-to-date, but don't take too much of the negative news. Try to limit your time on news feeds.
Prioritize your bills. If you aren't able to pay your bills in full pay for the most important things expenses like food, shelter utility bills, transportation.
Invest for the long term. The stock market will slow down and then recover. If your goal for your investment is more than 10 years into the future, then you are able to ignore the day-to-day swings.
More about coronavirus on NerdWallet:
Have a money question? Call us or text us at 901-730-6373. Or you can email us at . To listen to previous episodes, go to the
Episode transcript

Sean Pyles: Hello and welcome to NerdWallet's Smart Money podcast We will answer your money-related questions within 15 to 15 minutes, or even less. I'm your host, Sean Pyles.
Liz Weston: And I'm Liz Weston. Always be sure to email us your money questions. Text us or call us by texting us at (901) 730-6373. That's (901) 730-NERD. Contact us via email at
Sean: This episode, we're discussing a subject which we've had a lot of questions about in the past few weeks: coronavirus and how to prepare your finances for it. The impact of the new coronavirus and the COVID-19 disease that it triggers are already being felt throughout the economy. Many workers are having their hours cut or being laid off. The market is experiencing an emotional moment and people are trying to find ways to prepare for the worst. this means strengthening your financial position and for some, increasing the amount of toilet paper in your home.
Liz: Sean, you said you thought that was a joke, but then you realized it's not.
Sean: I went to the store late last evening and found that all the shelves had been empty.
Liz: Yeah.
Sean Then I'm grateful having one of those Amazon subscriptions that I just purchase every month because I'd be there, grabbing napkins. Who knows? But it's pretty serious. Many people are very anxious and lots of people are going to be in a very tight financial position.
Liz In this episode of the NerdWallet Smart Money Podcast, we'll discuss ways to prepare yourself financially and mentally, what to do if you are unable to pay your bills and why this is a great time to practice patience when it comes to investing.
Sean"Sir": Alright Sean, let's go for it.
Liz: Okay, let's start with the mental part , because I feel this is taking a lot for people in ways they didn't expect.
Sean: Yeah.
Liz Sean: Sean, what's going on with you?
Sean Sean: I am definitely one to slide into a news hole whenever something like this happens. To me, that means simply looking on Twitter or listening to the radio and getting really caught up with these instant-to-minute updates which to me can make me nervous. I suppose I do it because I want to get back some sense or control. However, I'm just being exposed to events that I don't have any control over. And I think that a lot of people feel similarly anxious because this is a serious issue and there's a lot of uncertainty. So one thing that I think would be good to do is to recognize their stress and not get caught up in what they can't control. Instead, concentrate on what you are able to control, like how much you're washing your hands or the type of news you're reading and the frequency of the news you consume.
Liz: I think that putting some limitations on it is really smart. It's true that you would like to be a well-prepared citizen, you want to be aware of the current situation However, I think that we all reach a point at which it's excessive.
Sean Says: Yeah I really enjoy doing things that help me feel like I have some kind of a sense of self-control, like this. I have deleted Twitter off my phone and I installed an extension to my internet browser that limits it so I can only view it for five minutes per day. This way, when I feel the need to look something up it's an information site and not simply scrolling through the stream of people screaming into the void. You just need to find a way to make it so that you're able to control what you're watching because it's really easy to get really annoyed by this sort of stuff.
Liz: Yeah, absolutely.
Sean I think that's excellent mentally, however, there are many things that you can do financially to be prepared for the possibility of a situation such as this.
Liz The other day I was thinking about the experience of walking into a grocery store only to find how empty the shelves appear. Then you realize that it's a little late to prepare today.
Sean: Mm-hmm.
Liz says: There's a limited amount you can do. If, for instance, you've been living from paycheck to pay and then you've quit your job I could suggest you have an emergency fund for three months, and you'll be like, "Well, that was very beneficial." That's why, even when you have a job and you're still working, you need to be mindful when it comes to spending. You might have to put aside a amount of savings aside. We at NerdWallet have never been huge on putting the emergency fund first since there are many other financial priorities that have to take place which are more important in the long run. But we do want you to have at least some sort of emergency fund -- $500, $1,000, whatever that gets you out of that paycheck to paycheck trap that's really easy to get into. So if you've got that, good for you. If you're in a situation that this might be a little too late, then we have other ideas for you.
Sean I'm sure that's something that I was thinking about as well. Most people are living paycheck-to-paycheck. They don't have an emergency fund and, in the present timeparticularly in the event that your hours have been cut the time you should tap the. One thing I'm thinking about here is I know that a lot of folks are going to be using their credit cards. even if you don't have savings, I believe now could be a good time take advantage of a 0% APR credit card which could provide a short-term cash reserve. Now, we don't typically suggest taking on debt, but if you need a bridge to cover the cost of your current expenses it could be an option. Just make sure that you complete all of your payments punctually to ensure that your credit remains stable and that you plan to get out of that debt before that 0 APR time period expires. Because these cards are all credit cards, your APR period is typically between 12 and 15 months and following that, interest rates may kick up as high as 15%, or even higher. So just be really aware of it.
Liz: There are also other alternatives to payday loans. If you do a search for payday loan alternatives, some of them will be listed and they're similar to charities. I'm aware that the Jewish [Free Loan Association] is in the public domain declaring, "Hey, we've got money to help people." There are grants for short-term projects that could be a possibility. Food banks are available. People are looking to help in a variety of ways. Therefore, there are alternatives in place of the payday loan. Payday loans are a real frightening option.
Sean: Right.
Liz: People borrow the money , and then they end up in a situation in which they cannot pay it on time when payday rolls around and they end ending up owing, owing owing, and not being able to dig themselves out. If you're considering one of these loans consider looking for an alternative.
Sean says now is a really good moment to check out your local community and find out the resources available. This is the time of year when many of these non-profits as well as local groups for community are moving into high gear since they've been preparing for. They're there to support you. But resources aren't unlimited and it's really difficult when you lose your job as the majority of people, particularly in the service industry are going through right now. And maybe in a couple of weeks they're going to realize, "Hey, I can't pay my bills at this moment." So I want to talk about this with you, Liz as this will be really hard, it's likely to affect a ton of people. Also, Liz I'm aware that you wrote an article titled "How to Pay Your Bills When You Can't Pay Your Bills." What would be your advice here?
Liz: You have to be triage. That means that you must put the most important things first. That's the most important things. That's the food you eat as well as shelter, the roof over your head, lights, heat, transportation, if you need to get to work, or to visit the doctor, or wherever it is. So those are the essentials that you must protect regardless of what. It is crucial to remind people of this because if they fall behind on their bills, collectors start calling and they get scared and pay the person who is the most nastiest. You really need to put your family, put yourself first and take care of the most essential things. Then, you make a second round of triage for the rest of your expenses. Which ones are the most severe penalties of not being paid? What ones allow for some flexibility? Students loans like student loans generally have a forbearance or deferral that allow you to avoid not having to pay for a period of time.
The lenders are generally more responsive during difficult times when they allow people to switch payment plans, or put off a payment or something like that, but you need to be in contact with them. You have to be talking with them. If you just stop paying, you may have missed some sort of program that could help you and you could have hurt your credit for no good reason.
Sean Hensley: Yes, this is one of those things where you have to do the work prior to the deadline. One thing I've been pleasantly surprised to discover in the last week is that a lot of creditors are putting out programs to be ahead of the game and are saying, "Hey, we realize that things are pretty challenging in the present. If you're not able to pay your bills contact us." However, you must make that call.
Liz: Yes, absolutely. In another podcast, we talk about what you can do to pay the IRS even if you aren't able to make payments to the IRS. So, that's the other issue that people are wrestling with. If you have a tax bill that isn't paying, yet, there are payment options, so don't hide, you've got to seek the options, and they could be a huge help.
Sean He wants their money and they want to be able to collaborate with you and build a good rapport with you. This means that you must be proactive, which is, perhaps not something you'd want to be doing when fighting an illness and worry about contracting an illness that is a nightmare. But it takes about 10 minutes. Just give them a call and try to work this out because the most important thing you don't want to do is to go into default and ruin your credit score, which will make things harder to come back to should you need to get another credit line.
Liz: Exactly.
Sean: A different thing I'm interested in this moment is the investments of people. There's been a lot of concern about retirement accounts. The stock market has seen plunge over the last couple of weeks. I'm curious about how people should think about this and what people should do if they're considering just totally pulling out.
Liz The question is: What's going on with the market? And the reason for it being so volatile is because the people who do the trading and the investors have a long-term view and are thinking, "This is going to affect the economy, but we don't know exactly how much." And the stock market hates uncertainty , which is why you're seeing it move all over the place. If you're not retiring tomorrow, then this is just an unintentional noise. What's happening from day, month to month, is irrelevant. What matters is what happens in the long run, the next 10 or 20 to 30 years. And we have the capability as humans and as a country to bounce back. So I think in the long run our prospects are great and I'm planning to remain in the game and be careful not to pay any attention to the background noise. If you're about to retire you're in a different position. Find an unpaid, fiduciary, qualified financial advisor. Get another pair of eyes look over your retirement plan to make sure it's still making sense.
Sean Sean: Okay, well that's logical. This is one of those instances where you need to control what you're consuming so you don't work yourself into a panic state where you end up investing in things that could harm you twenty, 30 or more years later.
Liz says: What we saw, which was extremely interesting, was that a lot of people dived in the markets. We saw a lot of visitors to our website initially as the market fell the first time. I think there were a bunch of people sitting on the sidelines going, "OK, here's my buying opportunity." And then the floor fell out of their feet and they're like, "Agghhhhh." But this is just part of being an investor. this stuff happens and we've seen bear markets before, and we've experienced major corrections prior to that. However, it does rebound. For those who are in the midst of a slump, it's like, you're not going to to catch it before it begins to increase and, when the market does begin to recover, it tends to do very quickly, and you'll be missing the majority all gains.
That's why every financial expert that is of a high standard is telling you to just stick with the plan, establish an asset allocation and ensure that your investments continue to grow and don't take a look.
Sean Take a moment to turn off the TV and go through the book.
Liz: Exactly.
Sean: Pop some popcorn. All right, great. Another thing I'd like to discuss is the travel plans. Many people do not want to travel at the moment or even have pre-existing plans to go to Machu Picchu or who knows where. However, the positive side is that many airlines are actually offering accommodations and removing cancellation fees, but the policies are changing on a daily basis it appears. 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 in the near future, check that out and make sure that you again are taking a proactive approach to planning any trips that may be coming up.
Liz me: I've been a bit of stunned as we've had to live with these awful changes fees, non-refundable deposits and finger shaking and to see these travel providers acknowledge this fact is amazing and like yeah, at least they're trying to do that.
Sean The Sean. I believe that's all we have time for. For folks that are getting anxious, perhaps being a bit unsure about your finances and unsure about their finances, you're not the only one, but take note of some actions you can take to make this tough moment a bit more manageable. Let's look at our tips for success. The first is to focus on what you can control, not what can't. If you are unable to pay your bills on time pay for the necessities: shelter, food and utilities, transportation. Also, during major market volatility like what we're seeing this moment, concentrate on the long term and ignore the day-to-day fluctuations.
This is all we have for this episode. Are you having a financial question that you'd like to ask? Turn to the nerds and contact us or text your question to (901) 730-6373, which is (901) 730-NERD. You can also email us at and visit nerdwallet/podcast for more details on this episode and remember to rate, subscribe and review us whenever you're listening to this podcast.
Liz: And here's our brief disclaimer carefully crafted by NerdWallet's legal team. Questions are answered by highly skilled and knowledgeable finance writers, but we're not financial or investment advisors. The information provided is to general education and entertainment reasons and may not be applicable to your specific circumstances.
Sean Says: With that said, until the next time, turn to the Nerds.










Authors' Bios Liz Weston is a columnist for NerdWallet. She is a certified financial planner and author of five money books which include "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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