Jack Rice show

" With so many people who have lost their jobs how difficult is it wonderful things that they should do. That's why I'm turning to Sarah requirements. She teaches personal finance classes that the U of -- extension service's regional center in Morse in cheap it's been talking a lot about this Sarah thank you for joining. Having me let's talk about the stroke first of all we see what's going on in the country what's going on right here in Minnesota. And some of us might be sitting on the bubble you know we're not gone yet but I got a bad feeling it's coming sort of a thing what do you do if you're one of those people."

" Well if you're one of those people and cat that bad feeling now at the time -- making the changes. Look at where you can start -- next and sensitive we're going back to the base but. -- out -- luxurious than me and looking at the essential."

" Like what I mean let's be specific you because they're going to be people who were listening we're saying okay I'm really in this position. And what is it that I should be doing right now I go home right now and I'm thinking about what I should do what it."

" Good grade when he needs to think about what are the basic needs when he feeder cells beneath clothing. We need right sheltered personal. Health -- probably important transportation may be important to get to work. What's not so important perhaps they large cable package may be a large."

" Always -- and that's the we gotta draw the line someplace I can't have my large cable package that's out."

" Reads oh I know that it's hard isn't I think it's -- very challenging for people at some maker -- technicians and and the sacrifices if you will. An and oftentimes -- I think the public hint are there ways we can cut the act on things rather than having -- things."

" So are we talking about these -- for people who were on on the bubble and where you're saying I don't know like could be gone or I might might might be demoted or I could be moved to a different division or something along those lines what about the person. Who has lost their job. And their concern obviously if they have. -- mortgage in they have. Credit card debt and they got they got this here and they had -- to car loans and they have the boat it's it's like that commercial what was it didn't over the commercial it was a commerce about a guy who's sitting here in the bank is I have everything I have a massive house I have to Karzai have the pool in the back how do I do it. I'm mortgaged up to buy it on the laws are so so what do you do if you're that person."

" Well after -- cry for me I would have to put. The act and and again look at what what I'd be essential. And homes often times spoke to me be -- over their heads are one paycheck away from disaster and -- paycheck -- coming in. The -- there are and then."

" art most of us one paycheck away from disaster it's been my experience I've heard people say oh you're supposed to have six months or three months or whatever it is. That number of money in the bank in the event that something goes south. I haven't found anybody who actually has that I don't know anybody in most people I know that if if they didn't get their paycheck on the first of the fifteenth -- whatever they get paid they're going to be in trouble."

" When that might be a good New Year's resolution for most of -- was cut to that aspect emergency reserve anywhere from three to nine months worth of expensive. So that if if that does happen -- paychecks stopped coming and we can right out of work for three at nine months. Still make the mortgage payment still make the car payment and at the same time cutting back on expenses and how we find new employment."

" What other things could we look at again I'm trying to imagine being in that position where your your out of work and and you have to deal with. Setting priorities the things that I'm going to do versus the things that I'm not going to do what do you think then what do what do."

" my my recommendation for folks -- economy cut spending plan or project. No richer picture is on paper you know what is what is the interment there isn't any and then what are those monthly expenses. And you mentioned several as the mortgage the rent in the car payments and utility bills. And then the death would connect credit card debt or other loans do we have for the got a very clear picture of what they're expensive -- and -- they can start making decisions about what's what's the priority for them and what not. Interest from families they mean need to start looking at at some amp Faxon and consider selling in the box where they can camp and -- and -- local."

" So you're talking about if you have say two cars or three cars or thirty cars if you're Gillette you can -- You can sell a couple scars 'cause I understand he's going to be out of work -- a little lastly we have the limp along as best he can so you would you would go down that path."

" Sure sure England and be sure to identify what the consequences of those actions -- we want to make sure that there's transportation for folks to get to work out. If they're public transportation they can take instead of their talent not vehicle. Many of -- pet toy of sitting around that that we might be able to file a boat or snowmobile or motorcycle. Things that don't fit -- that we need category is likely."

" Do you contacting your mortgage company if I if you're -- you have a house. Do you call them as soon as you get the call that says you're out the door right they handed the box and you're walking out the door do you pick up your cell phone if you still have your cellphone. I call the mortgage company and say hey this just happened to me I'm okay for a little while or do you. Limp along there."

" No you you've got the bright idea we encourage folks to contact their creditors. Ethnic affable but make sure you have a plan in place for -- start with that's spending plan in which you can either. And and what might be questionable but creditors are much more willing to work with you if you contact them and they have to start looking for you."

" Is that true for credit card companies 'cause it would seem that that's much different I mean there's a huge difference between. An asset which is the house and they want to help you versus the credit card companies -- or is it."

" it depends on the credit card and definitely where we're comparing it secured loans where the house of the collateral compared -- an unsecured loans. As much of the credit cards. I'm the Koppel credit cards as well if -- perhaps if you can negotiate a lower interest rates if you got a substantial balance there. Again they're much more willing to work with you on if you're in good standing and if you wait how you fall behind. Often times on the credit cards -- well if you can at least make the minimum payments which are typically two to 3% of the balance. Com he would you remain in good standing. Definitely going to take it much -- the pain and it could be -- finance charges but if you're able to at least make that payment chicken being."

" Sarah crime and is my guess she's teaches personal finance classes at the -- them extension service's regional center. In Morse. Sarah have you seen it change in the kinds of people who were coming team now that your teaching classes like this to. And even what you might have seen a couple years ago."

" Com and I think so I think we've become more accustomed polluting with more luxuries. It didn't like since. Which would like to experience like a little bit like there's -- were spending more on big screen TV isn't it and I think more opportunities to spend as well I'd look at. My parents you know when they were my age they're there weren't. Cable packages there weren't cellphones there weren't other things -- spend money on. And the worst spending more money it is more options. To spend money today -- we're prepared if meaning kind of a comfortable there we like have with a comfortable like but we may not be able to export it."

" Do you think things have changed sufficiently that things that we once would have thought is a luxury. People now see as truly a necessity what are you understand I got to have a by the way my seventeen year old would say that about her cellphone. Because it's permanently attached to her head."

" Truly I've had conversations with forty you're also well who. Who rationalize. Luxuries as --"

" Let's get to some calls let's go to carry first carry you have a question or comment for Sarah go head. Carrying with me. -- so I'm sorry Jerry go -- Jerry."

" Okay I just add a comment I'm -- my husband and I we actually do have six months sustaining -- count in case something did -- And like count as. You know sometimes I realized people lose their jobs and they don't have or 500 extra dollars but if they -- all. All are -- their art jazz where there's people okay and it might lose their job. And make 25 dollars an hour and they just simply refused to go -- worked for eight or nine dollars an hour. But on the other hand. Go buy a shovel or if you can afford it -- small or -- door to door Minneapolis probably make too 300 dollars today or more just twenty dollars an hour to. Clara somebody drive land and not sidewalk to."

" Jerry thank you very much sir have you seen people who were sort of reaching out saying well gosh now if I may have to readjust my schedules readjust. How we're living allies may -- I have to readjust. The search of jobs that I would have considered before to go down a different path."

" Would definitely folks need to rethink a little that what they might do in the short short term. You know someone that -- who had a nice job reform may not want to be doing snow shoveling the long term -- But think you're cheering for bringing that idea in the short term that we need to to consider doing a lot of different things and congratulations to Jerry as well on -- Have a -- six months expenses and savings account."

" Yeah I'm really impressed when that when the Sarah thank you very much for joining us today I appreciate your expertise thank you very kind devious Sarah. Claimants again teaches personal finance classes -- know -- of -- extension service's regional center in Morse."