LA financial planner offers advice, tips to SoCal families amid coronavirus crisis
As we face this public health pandemic, for millions this also means embarking on a financial crisis. Many SoCal families are turning to financial planners for guidance during the COVID-19 crisis.
LOS ANGELES (KABC) -- The coronavirus pandemic is creating a financial crisis for many people who are now seeking help.
Millions of Californians have filed for unemployment. As companies big and small cut jobs. The public health crisis is leading to a financial crisis.
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Dane and Luisa Pearson are one of the many SoCal families to take pay cuts. They're now speaking with financial planners for advice.
"In terms of our jobs, in terms of our finances, it's been pretty scary," said Dane Pearson.
"Millions of people are in the same problem. Everyone's concerned about the unforeseen, what can happen," said Brian Gilder, a Los Angeles-based financial expert.
Gilder provided some key tips to get through this: Go through your bank expenses and determine what luxuries you can eliminate. Consider canceling any future vacations to get deposits back.
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And what about insurance?
"Our auto, our rental, should we look for discounts there, you know? In terms of even the payments - is there a way to delay payment for that?," Pearson asked.
"I would not cut the life insurance, life insurance is very cheap. I mean you're probably paying pennies on the dollar for your life insurance," said Gilder.
Keep life insurance and consider combining home and auto insurance. Renters should talk to landlords now, show proof of pay cuts and offer partial payments, if able.
"I think one of the biggest mistakes people are making is that they wait to the last minute to tell a landlord, 'look we can't pay the rent.' I think you need to be up front with your landlord ahead of time," said Gilder.
Finally, plan for the future. Create an emergency fund, with 3 to 6 months worth of cash in the bank.
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