As we continue to make our way through COVID-19, many people are still looking for ways to get items they need without physical contact with another person.
Vending machines serve that purpose â and make money for the machineâs owner.
Owning and operating vending machines is big business, providing passive income without any specialized skills. Itâs also called automatic merchandising.
Basically, all you need to get started is some startup money to buy a machine, a good location and the right products.
The Vending Machine Business During COVID-19
Revenue for the vending machine industry was $24.2 billion in 2019, up 3% from the year before.
That data came from the Automatic Merchandiserâs Annual State of the Industry Survey â before the full impact of COVID-19 hit.
There were 2,175,756 vending machines in service in 2019 in a variety of locations including:
Manufacturing areas
Offices
Retail spaces
Hotels/motels
Schools
Hospitals and nursing homes
Universities/colleges
Correctional facilities
Military bases
Restaurants, bars and clubs
Cold beverages were the top-selling product category. A majority of vending machines involve food and beverage products including sodas, coffee, snacks and candy.
There are also machines for bulk vending like gumballs, stickers, toys, novelties and more. During COVID-19, machines popped up selling masks and hand sanitizer.
At places like airports, vending machines often sell tech accessories and travel essentials like neck pillows, blankets and eye masks. Laundry rooms in residential buildings often have machines with detergent and fabric softener.
With many offices, businesses and other public spaces closed or restricted due to the coronavirus pandemic, the vending industry is certainly taking a hit.
âWeâre in a tough, tough industry right now with COVID-19. A lot of stores donât want the machines there, they donât want the kids congregating, they donât want people touching them,â said Scott Ausmus, director of manufacturing for National Entertainment Network, Inc. and president of the National Bulk Vendors Association.
He grew up in the vending business. The machines he sells and operates are the novelty kind, offering things like stuffed animals, toys and gumballs. Many are in restaurants and entertainment venues like bowling centers.
Many factors make owning a vending machine an attractive business venture.
The startup costs are relatively low, sometimes around $2,000. The work is flexible and often doesnât require much day-to-day involvement. The risk is comparatively low and there is growth potential.
âThereâs a higher profit in the gumball then there is anything else,â Ausmus said. âThe cost of goods is low on the gumballs and everybody likes gum, so everybody still purchases a gumball and so that is a winner for a lot of people.â
Starting a Vending Machine Business
While the startup costs are low and the income is often passive, owning vending machines is not without risk. You must be able to understand your own financial situation and how much you can afford to invest.
There is the cost of the machine, the cost of inventory, personnel to keep it stocked, maintenance and more.
The more perishable the product and the busier the area, the more of your time the machine will take.
âIf (your machine location has) a big break room and a lot of employees, you would have to be there once a day to fill your machines up because thatâs how busy they are,â Ausmus said. Other machines like toys and candy donât require as much restocking.
One of the first steps in starting a vending machine business is finding your niche and deciding what to sell. That takes a bit of research and knowing who your customer is.
âYou gotta buy the right product. If you buy the wrong product, it wonât move and you wonât make any money and you certainly donât want to throw [product] away,â Ausmus said. âYouâve got to have the variety for people and find out which ones they want and thatâs what you restock with, what sells.â
Vending machine businesses are scalable, meaning itâs possible to start small and expand. You donât have to wait for payments because customers pay when they purchase an item.
Location, Location, Location
To put yourself in the best position to be profitable means finding the right location.
Places with lots of foot traffic are good. Before COVID-19, that meant schools and universities, malls, office parks, etc.
Think about where people need to wait. While waiting, they may get hungry or thirsty. Ausmusâ novelty machines need kids around.
âOne of the hardest things to do is to locate a location,â he said.
Location can be about trial and error.
âItâs really not a bad risk to put it in a location and find out that itâs not making enough money. ⦠You can remove it and move it to the next one until you find that right location,â Ausmus said.
When looking for locations, be prepared to approach the owner or landlord with a business plan for the machine.
Also be prepared to:
Pay a percentage of sales or other fee for having your machine in their location.
Pay for the electricity the machine uses.
Ensure the security of the machine. There is money inside a machine as well as inventory. Theft and vandalism are always possible.
Research state and local laws and regulations.
Pay sales tax on the revenue the machine generates.
Key Purchase: Your Vending Machine
Then you will need an actual vending machine. There are several types, and prices vary depending on what is in the machine, whether it needs refrigeration or heating, and the interactivity.
Buying directly from a manufacturer or supplier is one option, as is purchasing on a secondary market. Some companies also rent machines. Ausmus cautioned to make sure there are spare parts and support available for what you buy.
Machines range from about $1,500 for a used or refurbished machine to several thousands for a new, high-end machine with many technical features.
Some machines have:
Remote monitoring software: This helps keep track of how the machine is working and notifies the operator if something is wrong.
Low stock alerts: Notify the operator when items needs replacing.
Vending management systems (VMS): Tracks sales and other data to help owners make better business decisions.
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Running a Vending Machine Business
While owning vending machines does not require any special skills, it is a business.
You will need inventory and someone to keep the machine stocked and maintained. This may require a van or truck.
Perishables need to be stocked more often than other items. Learning some basic maintenance skills could keep you from having to hire someone if there is a problem with the machine.
Different types of machines have different capabilities. Some take only cash while others will process credit or debit cards. Some models have touch screens or voice capabilities.
âMake sure that you have your phone number on the machine, and that the store location knows your phone number,â said Ausmus. âIf somebody didnât get what they wanted, make sure the store can give them a refund and you pay the refund back to that store. Then get out there as soon as you can to fix the machine so that you can continue to make money.â
Automatic merchandising isnât for everyone, but owning and operating a vending machine can be a good business. Being able to retrieve the money you make and restock your machines easily is the key.
âThen you only work probably three days a month, basically on the whole gig,â said Ausmus. âThree four days a month can make somebody a good little extra income.â
Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Everyone knows that Super Bowl time is snack time.
But this year, given the ongoing coronavirus pandemic, you may be staying home to watch the game rather than heading to a big bash or going to a bar or restaurant and plunking down big bucks.
However you decide to watch the game, you can still enjoy some classic Super Bowl snacks.
6 Cheap Super Bowl Snacks to Enjoy With the Big Game
1. Chex Party Mix
Everyone loves this crunchy, salty snack. While there are thousands of different ways to make it, this time-tested recipe from The Spruce Eats is super easy and will appeal to the garlic lovers in your crowd.
Prep time: 15 minutes
Cook time: 60 minutes
Youâll need:
½ cup butter
2 tablespoons Worcestershire sauce
1 teaspoon seasoned salt
1 teaspoon garlic salt
½ teaspoon onion powder
3 cups corn Chex cereal
2 cups wheat Chex cereal
1 ½ cups mixed nuts
1 cup small pretzels
1 cup garlic-flavored bagel chips
1 cup mini pretzel rods
Preheat the oven to 250 degrees. Melt the butter in a large pan and stir in Worcestershire sauce, seasoned salt, garlic salt and onion powder. Add everything else and toss thoroughly until well-coated. Bake for one hour, stirring the batch every 15 minutes. Let cool and store in an airtight container.
2. Honey Garlic Crockpot Meatballs
For a hearty main course, this incredibly easy meatball recipe from Family Fresh Meals will keep your crew happy. Serve them over noodles or rice for a main dish, or just let people enjoy them as an appetizer.
Prep time: 5 minutes
Cook time: 4 hours
Youâll need:
¼ cup brown sugar
1/3 cup honey
½ cup ketchup
2 tablespoons soy sauce
3 minced garlic cloves
1 (28 oz) bag fully cooked, frozen meatballs
Mix together the brown sugar, honey, ketchup, soy sauce and garlic. Next, place the meatballs in a three- or four-quart crockpot and cover in sauce, tossing to coat. Turn the crockpot on low for four hours and stir occasionally.
3. Baked Mozzarella Sticks
Enjoy the diner classic at home with The Spruce Eats recipe for baked mozzarella sticks.
Prep time: 15 minutes
Cook time: 5 minutes
Youâll need:
½ cup brown rice flour
¼ cup tapioca flour
1/4 cup parmesan cheese, finely grated
1/2 teaspoon garlic powder
1/2 teaspoon salt
Freshly ground black pepper to taste
2 large eggs
6 sticks of low-moisture, part skim milk mozzarella string cheese (cut in half crosswise and frozen for 3-4 hours)
Grapeseed oil for frying
Marinara or other sauce for dipping
Add grapeseed oil to a skillet, and then mix the flours, parmesan, garlic powder, salt and black pepper in a shallow dish. Beat the eggs and add them to a separate dish. Coat the cheese, alternating between the dry mixture and the egg. Make sure to cover the entirety of the cheese pieces, including the ends.
Next, heat the oil in the pan to 360 degrees and then drop the frozen cheese into it. Turn them every 20 to 30 seconds until they are a golden brown color. Place the cheese on paper towels to absorb the excess oil, and then transfer them to a platter for serving.
4. Pigs in a Blanket
Prep time: 15 minutes
Cook time: 15 minutes
Go with the classic childhood favorite: buttery dough enveloping tasty mini-sausages. Pillsbury has a great recipe for pigs in a blanket.Â
Preheat the oven to 375 degrees. Unroll all the dough and pull into 16 triangles. Cut each triangle into three narrow triangles. Roll a sausage link up in each triangle of dough. Place them on unlined baking sheets. Bake for 12 to 15 minutes until golden brown, rotating halfway through. Serve warm.
5. Crockpot Beer Cheese Dip
Prep time: 10 minutes
Cook time: 40 minutes
This snack from The Spruce Eats just may be the most indulgent one on this list. Have it with pretzels or tortilla chips â or even try something fancier like apples and vegetables.
1/2 cup beer
1/4 teaspoon Tabasco sauce
1 pound processed cheese spread loaf, cut into 1-inch cubes
Youâll also need food to dip into it; The Spruce Eats suggests not only tortilla chips and hard and soft pretzels but also apples, crackers, bread cubes and assorted vegetables.
Combine the beer, Tabasco sauce and processed cheese spread in a slow cooker. Add more Tabasco sauce if you prefer a spicier treat. Cover and cook on high for 40 minutes. Once the cheese has melted, stir it to make it smooth. Keep it in the slow cooker on low and serve with the dippers.
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6. Restaurant-Style Buffalo Chicken Wings
It really is possible to enjoy restaurant-style buffalo chicken wings at home. This recipe from AllRecipes takes more time than others on the list, but thatâs only because you need to chill the chicken before cooking it.
Prep time: 60-90 minutes (includes time to chill ingredients before cooking)
Cook time: 15 minutes
½ cup all-purpose flour
¼ teaspoon paprika
¼ teaspoon cayenne pepper
¼ teaspoon salt
10 chicken wings
oil for deep frying
¼ cup butter
¼ cup hot sauce
1 dash ground black pepper
1 dash garlic powder
Mix flour, paprika, cayenne pepper and salt in a small bowl. Put the chicken wings in a nonporous glass dish or bowl and then sprinkle the flour mixture on top, evenly coating the wings. Cover the dish and refrigerate it for 60-90 minutes.
Heat the oil in a deep fryer to 375 degrees. Mix butter, hot sauce, pepper and garlic butter in a small saucepan and then put it over low heat. Stir until the butter melts and blend the mixture thoroughly. Then remove it from the heat.
Remove the wings from the refrigerator and fry them in the hot oil for 10 to 15 minutes. Remove them from the heat, put them in a serving bowl, add the hot sauce mixture and stir before serving.
Kristen Pope is a contributor to The Penny Hoarder. Editor Sushil Cheema contributed to this post.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Since weâre in the middle of a pandemic, weâre all trying to figure out the new normal. Whether youâre working from home, have a houseful of kids to keep busy or find yourself facing financial uncertainty, everyone has at least a little adjusting to do. While youâre taking stock of your life and what you need to adjust, itâs probably a good idea to take a look at your finances and credit card use, too.
Wondering how you should use your credit card? Weâve got some ideas for you on how you can use your credit card in the middle of a global emergency.
How to Use Your Credit Card During a Pandemic
But before we get started, remember to take a hard look at your personal finances before following any financial information. Everyoneâs situation is differentâso what might work for you might not work for someone else, and vice versa.
1. Keep Online Shopping to a Minimum
If youâre working from home, the temptation to online shop can be all too real. But when youâre in the middle of a pandemic, you might need to put your money towards unexpected expenses.
David Lord, General Manager of Credit.com, has some advice on preventing frivolous spending. âTry browsing, putting things in your cart and leaving them for the day,â Lord suggests. âIf you take a look at your cart the next day, youâll most likely find that 90% of the time you wonât remember the things you placed in your cart in the first place.â
If the temptation to online shop is too strong, Lord suggests buying something thatâll keep you occupied for a while, like a puzzle, a paint set or a yoga mat. That way, youâll be too distracted to buy something else.
2. Try to Keep Your Credit in Good Shape
During a global emergency, it feels like everythingâs up in the air. Because of that, itâs important to stay as on top of things as you can and prepare for the worst-case scenario. Having good credit is important in the best of times, but it can be even more so in the worst.
Letâs say you find yourself with a bill that you canât pay on your hands. If you need to take out a loan, youâd probably want a loan with the best interest rates possible. In order to qualify for those types of loans, youâll need a good credit score.
If youâre in a position to do so, try to keep your credit score healthy. Hereâs some quick things you can do today:
Keep an eye on your credit score and credit report
Pay your bills on timeâat least the minimum payment
Keep your credit utilization ratio at 30%
But if you find yourself in a financial situation where you canât keep up with everything, you can prioritize. For example, going above 30% of your credit utilization ratio wonât impact your score as much as missing a payment. Thatâs because credit utilization makes up 30% of your credit score, while your payment history makes up 35% of your score.
3. Utilize Cashback Rewards
Do you have a great rewards credit card on your hands? Nowâs a great time to use them. While some credit cards might not be handy right now, like travel rewards cards, there are others that could be useful. If your card offers cashback on categories such as groceries, gas and everyday purchases, take advantage. You could use those rewards to help you cover essential purchases.Â
4. Use Your Balance Transfer Credit Cards
If you already have significant debt or if youâve recently taken on new debt, you might want to consider using a balance transfer credit card. A balance transfer credit card allows you to move your debt from one card to your balance transfer card, which typically has a lower promotional interest rate. These promotional interest rates can last from six to 18 months, and sometimes longer.
These are great options if youâre faced with new debt. If youâre struggling to pay the rent, groceries or medical bills, and your stimulus check canât cover it all, you can use your balance transfer credit card. Just make sure to be careful. You still have to pay off your debt, so make sure to do so before the promotional balance transfer offer ends. If you can, try to make regular payments on your card, so youâre not faced with an overwhelming amount of debt when the promotional offer ends.
Be Mindful of Your Situation
Above all else, be mindful of your situation. What urgent bills do you have to pay? Do you have a loved one in the hospital? Have you or your significant other lost their job? Make goals based off of your situation, and use your credit card accordingly.
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If youâre looking for more information on coronavirus and your finances, check out our COVID-19 Financial Resource Guide. We update it frequently, to make the most up-to-date and useful information available to you.
The post Using Credit Cards During COVID-19 appeared first on Credit.com.
While COVID-19 has affected all parts of daily life, the travel industry has certainly been put on hold as people have had to cancel plans and stay at home. Since most travelers plan many months in advance, this also leaves many holding tickets they can no longer use. Frequent flyers and hotel loyalty members are left wondering what recourse they have, if any, when it comes to their member status and points or miles.
We researched the major players in the hotel and airline industry to find out how these companies plan to accommodate their valued members â by extending points, status levels and more â in the wake of the coronavirus pandemic.
Coronavirus relief measures by loyalty or travel program
Hilton Honors
Marriott Bonvoy
IHG Rewards Club
World of Hyatt
Wyndham Rewards
Choice Privileges
United MileagePlus
Delta SkyMiles
American Airlines AAdvantage
JetBlue TrueBlue
Southwest Rapid Rewards
Virgin Atlantic
British Airways
CLEAR
TSA Precheck
Global Entry
Hilton Honors
In addition to donating up to one million rooms to medical professionals, Hilton has promised to compensate its Hilton Honors loyalty program members in a number of ways.
Lower status requirements
Hilton has cut status qualification requirements by half.
Elite status
Previous status requirements
New status requirements
Silver status
4 stays, 10 nights or 25,000 base points
2 stays, 5 nights or 12,500 base points
Gold status
20 stays, 40 nights or 75,000 base points
10 stays, 30 nights or 37,500 base points
Diamond status
30 stays, 60 nights or 120,000 base points
15 stays, 30 nights or 60,000 base points
Status extension
For any Silver, Gold or Diamond members that were due to downgrade in 2020 or 2021, statuses will be extended through March 31, 2022.
Cardholder benefits
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Weekend night rewards on eligible Hilton credit cards that were not expired by May 1, 2020, will now be valid through August 31, 2021, and certificates issued from May 1 through Dec. 31, 2020, are valid for 24 months from the date of issuance. All free weekend night certificates issued in 2021 can be used any night of the week and expiration is extended until Dec. 31, 2022.
Additionally, bonus points will continue to count as base points on eligible purchases through Dec. 31, 2021, and toward elite status tier qualification, including Lifetime Diamond Status.
Other rewards
All 2020 elite qualifying nights will be rolled over to the 2021 status year. This applies to all nights members have already completed or will complete this calendar year.
On top of that, Hilton has lowered the requirements to earn Milestone Bonuses for 2021. Previously, you could earn 10,000 bonus points every 10 nights after completing 40 nights in a calendar year. Starting in January, that requirement has been changed to 20 nights stayed to align with the new Gold qualification level. However, 60 nights will still earn you 30,000 points.
Diamond members will be able to gift Gold status for staying 30 nights in 2021 instead of 60 nights which was the previous requirement. The requirement to gift Diamond status is lowered to 60 nights instead of 100.
To ensure member safety, Hilton is providing flexible cancellations and full points refunds for all Hilton Honors experiences booked through May 31, 2021.
You can follow further updates for Hilton Honors members on the loyalty program website.
Marriott Bonvoy
Marriott plans to compensate its Marriott Bonvoy members, although benefits may vary depending on membersâ location.
See related: Marriott data breach involves 5.2 million hotel guests
Status extension
Bonvoy members who earned elite status for 2020 can now enjoy their benefits through February 2022.
Points extension
Points set to expire by February 2021 will be paused, and no points will expire until after that time period.Â
Other rewards
Active free night awards (as part of Marriott credit cards or packages) set to expire beginning March 1, 2020, will be extended through Aug. 1, 2021. Additionally, more recent certificates set to expire before July 31, 2021, will be extended through that date as well. Suite night awards set to expire by Dec. 31, 2020, will be extended another year through Dec. 31, 2021.
Additionally, Marriott will deposit Elite Night Credits into Bonvoy elite membersâ accounts in the amount of 50% of the nights required for the status they earned in 2019. This can make it easier for the members to reach the next tier.
Elite Night Credits deposit breakdown
Elite status
Annual tier requirements
Extra elite night credits
Ambassador Elite
100 Qualifying Nights and $20,000 stay spend
50 Elite Night Credits
Titanium Elite
75 Qualifying Nights
38 Elite Night Credits
Platinum Elite
50 Qualifying Nights
25 Elite Night Credits
Gold Elite
25 Qualifying Nights
13 Elite Night Credits
Silver Elite
10 Qualifying Nights
5 Elite Night Credits
Stay up to date on relief measures for Bonvoy members on the companyâs COVID-19 page.
Coronavirus: What to do if youâre unemployed and have credit card debt
How to manage your credit cards during the coronavirus outbreak
IHG Rewards Club
Due to travel constraints and shortened travel periods, IHG has lowered its requirements for elite status membership by 25% or more, as well as extended statuses and points for all members (since elite membersâ points never expire).Â
Lower status requirements
Status
Previous qualification requirements
New qualification requirements
Gold
10,000 qualifying points in a calendar year or
10 qualifying nights in a calendar year
7,000 qualifying points in a calendar year or
7 qualifying nights in a calendar year
Platinum
40,000 qualifying points in a calendar year or
40 qualifying nights in a calendar year
30,000 qualifying points in a calendar year or
30 qualifying nights in a calendar year
Spire
75,000 qualifying points in a calendar year or
75 qualifying nights in a calendar year
55,000 qualifying points in a calendar year or
55 qualifying nights in a calendar year
See related: The benefits of IHG Rewards Club elite status
Status extension
Program statuses will be extended through January 2022 for all members. Spire elite members will also retain their Choice benefit of 25,000 bonus points or gifting of Platinum Elite status to someone each year.
Award certificatesÂ
Anniversary night certificates (U.S. and U.K. only) set to expire before March 1, 2020, will be extended through the end of the year. All 2020 certificates will be redeemable for 18 months, instead of the usual 12. Some members have also reported that free night certificates expiring before Dec. 31, 2020, will be extended until August 2021.
Follow updates to IHG Rewards Club benefits on the programâs travel advisory page.
World of Hyatt
The World of Hyatt loyalty program will extend all statuses and rewards to compensate valued members.
Status extension
All active elite statuses, as of March 31, 2020, will be extended through Feb. 28, 2022.Â
Points extension
Forfeiting points due to inactivity will be suspended through June 30, 2021. No points will expire until that date.
Other rewards
Any earned rewards, such as free nights or upgrades, set to expire between March 1 and Dec. 31, 2020, will be extended through Dec. 31, 2021.
Check the updates to Hyatt relief measures on the programâs COVID-19 page.
online.
Keep an eye on Wyndhamâs COVID-19 statement page for updates.
Choice Privileges
It took Choice some time to follow suit and join other hotel chains in extending elite statuses and offering other promotions amid the outbreak. On May 21, 2020, the company announced a series of offers to expand the benefits of its Choice Privileges loyalty program.
“Even during this crisis, our members found a number of ways to engage with us and make a difference,” said Jamie Russo, vice president, loyalty programs and customer engagement, Choice Hotels. “Some of them are essential and frontline workers who chose to stay in our small-business hotels, and others showed their generosity by donating their Choice Privileges points to aid recovery efforts. Our latest loyalty program changes tell our members that we appreciate their continued support and our hotels are here to welcome them whenever they feel safe traveling again.”
Status extension
All membersâ current elite statuses will be extended through Dec. 31, 2021.
Lower status requirements
Choice is also easing requirements to qualify for elite status in 2021.
Elite status
Previous status requirements
2021 status requirements
Gold status
10 nights
7 nights
Platinum status
20 nights
15 nights
Diamond status
40 nights
25 nights
Additionally, Choice is giving current elite members a limited-time upgrade to the next tier. Gold members will be upgraded to Platinum status and Platinum members will be upgraded to Diamond. Additionally, members who stayed at least five nights by Dec. 31, 2020, will be able to keep their upgraded tier through 2021.
United MileagePlus
United has said it would compensate their MileagePlus members by extending all annual memberships, subscriptions and checked bag benefits for six months. United also plans to make status membership requirements easier and will release information later in 2020.
Status extension
All MileagePlus Premier members will get to retain their 2020 status through Jan. 31, 2022.
Lower status requirements
MileagePlus Premier membership now has easier requirements, reduced 50% for each status level.
2021 status
Premier qualifying flights
and PQP
⦠or PQP
Silver
6
2,000
2,500
Gold
12
4,000
5,000
Platinum
18
6,000
7,500
1K
26
9,000
12,000
Other rewards
All valid travel certificates issued on or after April 1, 2020, will be extended to be valid for two years for booking, as well as up to an additional 11 months to travel. All redeposit fees for flights booked through May 31, 2020, will be waived, as well as all fees for members who cancel within at least 30 days of departure.
Follow more updates to United MileagePlus on the programâs travel notice page.
Delta SkyMiles
Delta has stepped up to say they will compensate their Medallion members by extending their Member status.
Status extension
2020 Medallion Member status will be extended through Jan. 31, 2022, and this change should be reflected on the memberâs SkyMiles account by Feb. 1, 2021. Additionally, all 2020 Medallion Qualification Miles will roll over into 2021.
Follow updates to the Delta SkyMiles program on the coronavirus travel update page.
American Airlines AAdvantage
As AAdvantage members experience reduced travel opportunities due to the coronavirus, American Airlines is offering elite status extension, lowering elite status requirements and allowing eligible cardholders to earn miles toward Million Miler status with credit card spend.
Status extension
Members whose elite status expires on Jan. 31, 2021, will automatically get an extension until Jan. 31, 2022.
Lower status requirements
Members will be able to qualify for a higher elite status in 2021 with lower requirements, including Elite Qualifying Dollar (EQD), Elite Qualifying Mile (EQM) and Elite Qualifying Segment (EQS).
Gold oneworld Ruby
Platinum oneworld Sapphire
Platinum Pro oneworld Sapphire
Executive Platinum oneworld Emerald
$2,000 EQDs and 20,000 EQMs or
$2,000 EQDs and 20 EQSs
$4,500 EQDs and 40,000 EQMs or
$4,500 EQDs and 45 EQSs
$7,000 EQDs and 60,000 EQMs or
$7,000 EQDs and 70 EQSs
$12,000 EQDs and 80,000 EQMs or
$12,000 EQDs and 95 EQSs
Cardholder benefits
The CitiBusiness® / AAdvantage® Platinum Select® Mastercard® cardholders who hold a companion certificate expiring Dec. 31, 2020, will receive a six-month extension as well, bringing the expiration date to June 30, 2021.
Learn more about AAdvantage program updates on aa.com.
JetBlue TrueBlue
JetBlue took a bit longer to join other airlines in taking measures to support loyal customers. On May 14, 2020, JetBlue announced it’s extending Mosaic elite statuses, as well as making it easier to earn one.
Status extension
All currently valid Mosaic elite statuses will be extended through Dec. 31, 2021.
Lower status requirements
JetBlue is reducing the qualifying thresholds for Mosaic status by 50% for 2021. To earn the status this year, you’ll need to earn 7,500 qualifying TrueBlue base points or 6,000 qualifying TrueBlue base points and 15 flight segments.
Alternatively, you can get the elite status by spending $50,000 in annual net purchases on the JetBlue Plus card â this spending requirement hasn’t changed for 2020.
Virgin Atlantic
Virgin Atlantic has also made it easier for customers to earn and maintain elite status amid the pandemic.
Status extension
In March 2020, Virgin Atlantic extended status for Gold and Silver members, allowing them an additional six months to meet the requirements.
On Aug. 20, 2020, the airline added another six months to the extension, making it one year in total.
Other rewards
Starting Sept. 1, 2020, the Flying Club program members will be able to earn tier points on award flights, meaning they’ll be able to earn elite-qualifying points on flights where they used Flying Club miles to redeem for travel.
On top of that, Virgin Atlantic makes it easier for members to earn and redeem Companion Vouchers, Upgrade Vouchers and Clubhouse Vouchers.
Members can now use Companion Vouchers with any ticket in any booking class, regardless of status. Gold and Silver members can book their companion into any cabin for zero miles, and Red members can book their companion into Economy and Premium for zero miles or upper class at a 50% discount.
Upgrade Vouchers can also be used with any ticket in any booking class, excluding Economy Light, for a one-cabin upgrade on a return flight.
Clubhouse Vouchers can be used for one entry to any clubhouse when booked on a Virgin flight or with Air France, Delta or KLM when flying internationally. Gold members will continue to receive two vouchers.
Southwest Rapid Rewards
On April 16, Southwest announced a status extension for A-List and A-List Preferred members and companion passes. The company is also giving a points “boost” to all Rapid Rewards members.
“As we continue to navigate our way through this unprecedented time and deal with extraordinary challenges, we are committed to keeping you informed and updated on the steps we are taking to manage through the COVID-19 pandemic,” Southwest said in a message to Rapid Rewards members.
Status extension
Companion Pass Members who received an extension of their earned Companion Pass benefits through June 30, 2021, will have their benefits extended for another six months. Members will be able to keep their status through Dec. 31, 2021.
Other rewards
Southwest is giving all Rapid Rewards members with an account opened by Dec. 31, 2020, a âboostâ of 25,000 Companion Pass qualifying points and 25 flight credits toward Companion Pass status, as well as 15,000 tier qualifying points and 10 qualifying flight credits toward A-List and A-List Preferred.
Southwest cardholders can also spend their way all the way to A-List status, with no cap on tier qualifying points (TQPs) earned through card spend. Previously, cardholders could only earn up to 15,000 TQPs per year via card spend.
Additionally, travel funds created or expiring between March 1, 2020, and Sep. 7, 2020, will now expire on Sep. 7, 2022. Alternatively, Rapid Rewards members can convert those funds into Rapid Rewards points. According to Southwest, the conversion ratio is âthe same rate you would be able to purchase a ticket with points today.â
British Airways
On June 11, British Airways finally joined other airlines in extending the elite status for its members. Additionally, the carrier is reducing the number of tier points needed to reach a higher membership tier.
Status extension
British Airways is extending tier status by 12 months for members who have a tier point collection end date of July 2020, through to June 2021.
Lower status requirements
The carrier has also reduced the number of points needed to retain and upgrade a membership status by 25%.
Here are the new tier qualification thresholds:
Bronze: 225 Tier Points or 18 eligible flights
Silver: 450 Tier Points or 37 eligible flights
Gold: 1125 Tier Points
Cardholder benefits
Members who have earned heir Gold Upgrade Vouchers, Companion Vouchers and Travel Together Tickets with a British Airways credit card will get a 6-month expiration extension to any current vouchers.
CLEAR
CLEAR is a program that makes it quicker for travelers to get through airport security lanes by using biometrics for ID verification. Since many people are currently avoiding traveling due to the coronavirus outbreak, a CLEAR membership might not be useful at the moment.
Originally, CLEAR offered customers to pause their membership for three months. Now CLEAR is allowing members to request a three-month extension to their membership, which can be done by contacting the company directly. With customer service channels such as phone lines overloaded by requests, the fastest way to do so is via CLEARâs online chat. However, some users have reported experiencing difficulties finding the chat box on the website. Alternatively, you can reach CLEAR by text, email or phone.
TSA Precheck
TSA Precheck is a five-year membership that provides expedited security checks at select domestic airports in the U.S. At this time, TSA is planning to keep enrollment centers open while working to determine if any temporary closures are required. Some centers have been closed or changed hours.
If youâre planning to visit an enrollment center, itâs recommended that you schedule an appointment â as walk-ins may be deferred.
Visit TSAâs enrollment questions page for more information.
Global Entry
Global Entry, a program run by U.S. Customs and Border Protection that allows travelers to get expedited clearance through automatic kiosks when arriving in the U.S, has reopened its enrollment centers on Sept. 8, 2020. After a six-month hiatus, the program will finally allow conditionally approved Global Entry applicants to complete in-person interviews at most Trusted Traveler Programs enrollment centers in the U.S. The interviews must be scheduled in advance online, and their availability will vary by location.
Since the COVID-19 outbreak has also affected processing times for Global Entry renewals, CPB has increased the renewal grace period to 18 months. This means that if you apply for your Global Entry renewal before its expiration date, you’ll be able to use Global Entry for another 18 months.
As the coronavirus situation is unprecedented and changing rapidly every day, hotels and airlines continue to make updates to their travel policies, including their loyalty programs. Travelers should continue to check airline and hotel websites as the situation evolves. If they cannot find the information they need online, they should contact their hotel, airline or travel agencyâs customer service number.
COVID-19 is having a massive impact on the global economy and very few industries have been untouched by it. If your business relies on employees working in a physical space and profits only when people are willing to shop and spend, thereâs no escaping it.Â
Itâs no surprise, therefore, that the auto industry has been so negatively affected. In a recent guide, we looked at the many auto loan relief options that manufacturers offering in light of the coronavirus. In this guide, weâll highlight the ways this industry has been stung by the pandemic and look at what it means for the future of the US automobile and car financing sectors.
How is the Coronavirus Affecting Car Sales?
The automobile manufacturing industry experienced a minor surge at the beginning of 2020 but COVID-19 began to impact sales heavily in March. Many companies, Fiat Chrysler and General Motors included, began the year with strong momentum behind them, but March hit them hard and negated all the gains made during the first two months.
Both of these companies recorded losses for the first quarter of 2020, with Fiat Chrysler losing 10% in total.
Toyota, one of Americaâs biggest manufacturers, also recorded massive losses for March, with daily sales dropping by nearly a third during this month.
All of this is to be expected. The US has yet to announce the sort of national lockdowns we have seen in countries like the United Kingdom, Italy, Spain, and Greece, but many citizens are in self-isolation, countless businesses have shut their doors, and there are fewer cars on the road as a result.
Combine this with the fact that people are losing their jobs and worrying about their futures, and itâs easy to see why car sales have been affected so severely.Â
What are Manufacturers Doing About It?
Automobile manufacturers have moved quickly to stem the rising tide of financial devastation caused by COVID-19. Fiat Chrysler, for instance, is offering improved auto loan conditions to convince consumers to make sizeable purchases and keep the wheels turning. It has also made it easier to purchase a car for those in self-isolation or lockdown.
You can now buy a Fiat Chrysler online, with options for trade-ins, auto loans, and pretty much everything else you would get when buying in person.
Theyâre making it easier for you to buy because they need you to make that commitment. At the same time, the production of many new vehicles has been halted.
While some plants and showrooms are still open in the United States, Europe has experienced an almost continent-wide shutdown, leading to a decreased demand.Â
Manufacturers are also anticipating that things will get worse, as many experts predict that the USA will experience a spread similar to that of Spain and Italy.
How Has COVID-19 Hurt the Automobile Industry?
We have already touched upon some of the ways that COVID-19 has impacted the automobile industry, but the problem goes far beyond people not being able to make it to their local showrooms. Furthermore, if events in Europe are anything to go by, the problems will only get worse and it could be several years before the automobile sector recovers.
Here are a few reasons the industry has been hit hard:
Uncertainty
There is a genuine fear that the COVID-19 pandemic will remain for all of 2020 and even beyond that. It seems unlikely that it will last for that long, but if the country doesnât go into lockdown and a vaccine isnât produced, itâs possible.Â
With this in mind, many consumers are putting off buying new cars out of fear that they simply wonât need them. New cars depreciate rapidly and can lose 20% in the first year. Whatâs the point of spending $30,000 on a new car if it will be worth $24,000 by the time you actually get behind the wheel?
Struggling Stock Markets
The stock market doesnât just impact big companies and investors. It also affects average American families who have their money tied into savings accounts, stocks, and pensions. Savers have lost a lot of money and are worried that theyâll lose even more in the near future, making buying a $30,000+ vehicle incredibly reckless.Â
Price of Gas
One of the few things that the automobile industry has on its side is the price of fuel, which has plummeted in the past few weeks. The problem is, no one cares about the price of fuel when theyâre stuck inside the house worrying about their health and their jobs.
Closed Plants
Automotive plants canât simply shut down for a few weeks and then start up again when everything has cleared up. Many plants were already struggling to keep things together and once production stops and their profits disappear, they may close down entirely, taking hundreds, if not thousands of jobs with them.Â
Bottom Line: Car Sales After COVID-19
Itâs highly likely that the hard times will continue for the manufacturing industry. As the coronavirus continues to spread across the country, manufacturing plants will struggle to retain employees, showrooms will shut, and fewer Americans will be willing to pay the $30,000+ required for a new vehicle.
Whether this impacts the future price and availability of automobiles remains to be seen, but itâs highly likely that weâll see some massive changes in this industry. Americaâs best-loved manufacturers will lose millions and could be sent to the brink of financial destruction, while many salespersons and mechanics will likely lose their jobs as demand drops and garages/showrooms close down.Â
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How COVID-19 is Affecting Auto Loans is a post from Pocket Your Dollars.
Things To Do While Stuck In Your Apartment During the Coronavirus Pandemic
By now, almost everyone in the country is under some kind of shelter-in-place or stay-at-home orders from government agencies due to the coronavirus pandemic. Authorities stress that this is the main way to try to flatten the curve of new infections.
OK, so what can you do while cooped up in your apartment. The options arenât quite unlimited, but they are numerous. Take advantage of the space you have and undertake any activity that will be good for your mental or physical well-being. Hereâs a look at some of the most popular:
1. Do a jigsaw puzzle
This has become quite popular around the country, with people finishing a jigsaw puzzle and then posting a picture of it on social media. The more pieces, the better, say, 1,000 or more. How long youâll be able to do this to remain occupied depends on how many puzzles you have on hand, or how many times youâre willing to do the same puzzle over again.
If you donât have jigsaw puzzles, maybe you have a Rubikâs Cube or a book of crossword puzzles. You can also find crossword puzzles online and in your daily newspaper, if you still subscribe.
2. Exercise!
If you have a set of weights in your apartment, use them. Or maybe youâre a packrat and still have exercise routines on VHS tapes or DVDs. If not, there are plenty of routines you can find for free online.Â
If you can leave your apartment, go for a walk or a jog, as long as you observe the social distancing rules that are now the new normal. If you donât want to go outside, walk up and down a stairwell or walk up and down your hallway. Again, give others their personal space.
Short of that, you can go old-school and do crunches, sit-ups and push-ups on your floor. You can also do isometric exercises using a rolled-up bath towel. For a refresher on the techniques, check out these workouts you can do in your apartment and then get to work.Â
Whatever you chose, mix it up and keep it fresh as you stay in shape.Â
3. Binge-watch
OK, the first two suggestions will put your mind and body to work. At some point youâll feel like being a couch potato, so why not catch up on a series youâve been meaning to watch on Netflix, Disney Plus or one of the many streaming services available? Youâve never had a better excuse than now.Â
âTiger King: Murder, Mayhem and Madnessâ has become all the rage on Netflix. It was released in mid-March and has given people something to do in the age of coronavirus. It is a true-crime documentary television series about the life of former zoo operator Joseph Maldonado-Passage.
If thatâs not your thing, there are favorites such as âNarcos: Mexicoâ and âStranger Thingsâ on Netflix. If youâve already seen them, whatâs the harm in starting over? On Disney Plus you can watch âThe Mandalorian,â âStar Wars: The Clone Warsâ and âThe Simpsons.â
4. Spring cleaning
Itâs spring, and you have a lot of unexpected time on your hands. Nowâs a great time to get in some spring cleaning of your apartment. Cut through the clutter and organize your closet and dresser. Most importantly, regularly clean and disinfect important areas such as kitchen surfaces and appliances that are used often. You should also keep your bathroom clean.Â
5. Other stuff
There are plenty of other things you can be doing, such as catching up on your reading, playing a musical instrument, writing emails to friends and family and getting plenty of rest.
Read Things To Do While You’re Stuck In Your Apartment on Apartminty.
As Americans grappled with the financial consequences of the pandemic in March of this year, the federal government took several actions to help cash-strapped consumers. For starters, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March of 2020, which included a temporary suspension of payments and interest for government-owned student loans through the end of September 2020.
Beyond just suspending payments and interest, the act also halted all collections activities on federal student loans. Americans pursuing Public Service Loan Forgiveness (PSLF) would see these non-payment months counted toward the 120 months of payments needed to have their loans forgiven.
You can continue making payments on your federal student loans during the deferment period if you want to. Whether you should, depends on your goals and your situation.
This announcement was a huge relief for Americans with student debt since it meant they could pause federal student loan payments without accruing interest or facing penalties for several months. And recently, this assistance was extended for the remainder of 2020.
About the Student Loan Deferment Order
According to a memorandum from the White House, this extension intends to âprovide such deferments to borrowers as necessary to continue the temporary cessation of payments and the waiver of all interest on student loans held by the Department of Education until December 31, 2020.â
What does this mean for borrowers? The extension of this order means that those with federally owned student loans (not private student loans) can continue skipping payments for the duration of 2020. Interest wonât accrue on federal student loans during this time, and penalties wonât come into effect for those who choose to defer loan payments.
How Does This Help Student Loan Borrowers?
Although unemployment numbers have improved since the summer, the initial pause on federal student loan payments was of massive help for borrowers struggling with job loss or a loss in pay. After all, getting a break from student loan payments made room for funds to go toward other household needs and bills. Keep in mind that the average student loan payment is approximately $393 for all borrowers, but that many with advanced degrees pay significantly more than that every month.
When the Presidential action was released, it was unclear whether borrowers pursuing PSLF will still receive credit for non-payment months. However, a U.S. Department of Education press release clarified that PSLF borrowers would, in fact, receive credit toward loan forgiveness as if theyâd made on-time payments.
Just keep in mind that this order does not apply to consumers with private student loans. Only federal student loans qualify for this protection, although some private student loan companies are offering their own separate deferment options to consumers who can show financial hardship.
Pros and Cons of Making Payments During Automatic Deferment
One interesting detail from this order is buried in the fine print:
âAll persons who wish to continue making student loan payments shall be allowed to do so, notwithstanding the deferments provided pursuant to subsection (a) of this section.â
In summary, you can continue making payments on your federal student loans during the deferment period if you want to. Whether you should, depends on your goals and your situation.
Benefits of Making Loan Payments
If you havenât faced a loss in income, then you might be tempted to continue making payments on your student loans. The benefits of doing so include:
Paying down your student loan debt faster. The Department of Education says that, through the end of 2020, âthe full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.â This means that every cent thrown toward your loans right now applies to your loan balance, quickly reducing your student debt on a dollar-for-dollar basis.
Saving money on interest. Because of the way interest accrues on student loans and other debts, reducing your balance will automatically save you money on interest over the long haul. The more you pay toward your student loans now, the more money you save.
Related: How To Pay Off Student Loans Faster Than Ever
Disadvantages of Making Loan Payments
There are a few potential downsides to making student loan payments when theyâre not required. Plus, borrowers with certain types of student loans should not be making payments right now.
Here are a few considerations to keep in mind.
You may need the money later on. Even if your income is fine right now, the financial fallout from the pandemic is far from over. If you choose to make student loan payments through the end of the year and lose your job in a few months, you might wish you had saved that extra cash instead.
Those pursuing PSLF shouldnât make payments. If youâre pursuing PSLF, then this deferment period is counted toward the 120 on-time payments you need for loan forgiveness. If you continued making payments through the end of the year, you would be throwing money down the drain.
Most borrowers on income-driven repayment plans have little incentive to make payments. If youâre on an income-driven repayment plan like Pay As You Earn (PAYE) or Income Based Repayment (IBR), then your loan payment is only a percentage of your discretionary income, and your loans will be forgiven after 20-25 years of on-time payments. Borrowers who aim to have their loans forgiven after 20-25 years anyway should skip payments through the end of the year and set aside their cash for a rainy day instead.
The Bottom Line
Individuals who want to pay off their loans quickly would be smart to pay as much as they can, but only if they can afford it. It also makes sense to be cautious about any extra income you have for the time being. After all, more economic pain may be on the way, and itâs possible you could face a loss in income later in the year.
Without any interest accruing on federally owned student loans during this historic forbearance, however, you could always put your student loan payments into a high-yield savings account until the end of the year. At that point, you can assess your financial situation and make a large, lump sum payment toward your loans if you want.
This strategy creates a greater safety net for the remainder of 2020 while also paying down debt faster with a large payment before the end of December. Run the numbers and make sure you have a plan (and a back-up plan) in place.
The post Should You Make Payments During Coronavirus Student Loan Deferment? appeared first on Good Financial Cents®.
File this one under âno correlation,â despite a flood of news articles claiming the Fed’s rate cut directly impacts mortgage rates. Today, the Fed cut the federal funds rate by half a percentage point to a range of 1-1.25% due to the uncertainty surrounding the coronavirus, this despite a strong U.S. economy. That sent mortgage [&hellip
The post Mortgage Rates vs. Fed Announcements first appeared on The Truth About Mortgage.
With finances in peril due to COVID-19, many homeowners are in search of mortgage relief. Two strategies that many borrowers are anxious to invoke right now are mortgage deferment and mortgage forbearance.
Both tactics allow a borrower to skip monthly payments for a set period. Depending on the lender, there can be subtle differences between the two terms.
âWe are seeing the terms being used interchangeably,â says Sara Singhas, the director of loan administration for the Mortgage Bankers Association.
She adds that both tactics allow a temporary period during which a borrower need not make contractual monthly payments. The differences between the two strategies come at the end of that period.
âWhat happens at the end of the forbearance period is the amount of payments that you missed during that forbearance will be due in a lump sum,â says Singhas.
Sometimes, lenders will work with borrowers to structure a payment plan, instead of demanding a lump sum.
Defermentâespecially special programs that lenders have introduced during the pandemicâoften allow customers to repay the money over time or to add it to the end of the loan period.
Clearing up confusion about mortgage forbearance
âIn the mortgage world, itâs very fluid … [but] what we hear more is the term forbearance,â says Mary Bell Carlson, a certified financial planner professionally known as Chief Financial Mom. âOverall, forbearance is saying, ‘Hey, something has happened, I cannot pay.’â
A book Carlson has dubbed her Bible of the financial world, “Surviving Debt,” by the National Consumer Law Center, makes no distinction between forbearance and deferment.
âThey do not even use the word deferment in terms of a mortgage, everything is called a forbearance in this book,â she says.
If a lender does differentiate between the terms deferment and forbearance, the difference will be at the end of the loan period, according to Singhas.
Some borrowers will be able to add extra payments to the end of the loan or make other arrangements to spread out repayment, while others will not. Sometimes, payment terms involve a new loan or a rewriting the existing loan.
Mortgage loan originator Krista Allred says one differentiation can center on foreclosure proceedings and timing.
âTechnically, a mortgage forbearance agreement is when youâve possibly been late, and the lender agrees not to foreclose during that forbearance period,â says Allred. In this scenario, a borrower already has a history of nonpayment before entering into a forbearance agreement.
But with the pandemic only revealing its enormous scope within the past 30 days, many borrowers haven’t been lateâyet.
However, because of sudden job loss or because of the quarantine, borrowers have besieged the phone lines of their lenders, to get out in front of the financial iceberg.
Contact your lender for mortgage relief
No matter what you call it, if borrowers ask for help during this crisis, many lenders are allowing them to miss payments and not charge them late fees or penalties.
âThe definition really doesnât matter. The moral of the story right now is to call your lender. Donât just assume you can skip a payment. Call them, let them know, and make arrangements,â Allred advises.
Carlson struck the same chord and told us that borrowers shouldn’t get caught in the weeds about the semantics of forbearance versus deferment.
She says, âThey just need to pick up the phone and say, ‘Hey look, I’m in a bad situation, I’ve lost my job, and I think it’s going to be rough for the next three months.’ From there the lender can come back and say, ‘Here [are the] options.’â
Due to the current financial situation, the mortgage world is shifting. Options that weren’t on the table for borrowers a few months ago might be available now.
Singhas says the length of time that the forbearance could be extended and the options at the end of the term might be different. She adds that borrowers in good standing prior to the current crisis may able to do a modification wherein any monthly payments missed now are simply tacked on to the end of the loan.
Pressing pause on your mortgage
Whatever terminology your lender uses, itâs important for you to understand what is really happening with your loan. Nothing is free. You can’t expect to stop paying your mortgage forever.
âIt’s not free mortgage payment, it’s not free money. [Forbearance] is temporarily hitting the pause button on your mortgage, and not having to make the payment,â Carlson warns.
âIt does not necessarily pause the interest that is accruing, and it does mean that you’re going to have to make that principal and interest payment at a later date.â
Key questions to ask before seeking mortgage forbearance
When calling your lender, Carlson recommends asking:
What relief options are available?
Will interest continue being calculated during the length of time I am not paying?
Will there be any fees?
How will it be reported to the credit bureaus?
Do I still need to pay for my escrow to cover taxes, insurance, and mortgage insurance?
Singhas says some lenders have decided to allow certain loan modifications. In some cases, they will allow the monthly payment to be changed later in the life of the loan, to include the amount missed during the forbearance.
She adds that the main confusion for consumers right now is the fact that most lenders will not necessarily require a lump sum payment after the forbearance period ends.
âI think some people are panicked that if they get a forbearance, they have to pay it all back immediately,” she notes.
“Thatâs one option, or they can enter into a payment plan if they canât make the lump sum, and if they canât make a repayment plan work, there are other options available to them.â
If you work out a forbearance or deferment plan with your lender and donât just skip payments, it can protect your credit.
âIt doesn’t show a positive or a negative, but it doesn’t show like a missed payment,â Carlson explains.
âSo if you were to ignore it and just not pay anything and pretend it will go away, that’s absolutely going to affect your credit report in the long run. But the forbearance or deferment is a neutral. It’s not positive or negative on the credit report, but it’s a lot better than having missed payments on your mortgage.â
One caveat to keep in mind is that if you can pay your mortgage, pay it, and donât ask for relief.
âItâs always better to make your monthly payment if you can,â Singhas says.
The post Mortgage Deferment and Mortgage ForbearanceâIs There a Difference? appeared first on Real Estate News & Insights | realtor.com®.
Love it or hate it, many Americans are spending more time at home. The coronavirus pandemic not only accelerated the work-from-home trend to warp speed, but it also shuttered schools and summer camps, scratched travel plans and canceled brunch and dinner reservations across the country.
Jen Dawson, a certified financial planner and managing director in Chicago, found that the uncertainty and stay-at-home lifestyle created by the pandemic prompted her clients to look at their financial situations in a new light.
âI think it just gives opportunities for people and families to reflect,â Dawson says. ââWhat do we want out of life? What do we want from our money?â Those conversations are really valuable.â
As Dawsonâs clients reflect on their goals, they (and many others) are also wondering, âHow should I adjust my household budget if weâre spending more time at home?â
How to optimize your budget for the stay-at-home economy in 4 steps
Ellen Rogin, a former wealth advisor and now a speaker, author and entrepreneur, notes that people across the country were affected by the pandemic in very different ways. While many workers were able to keep their jobs as they transitioned to working from home, many were not.
âThere are people who have lost their jobs and are being forced to make difficult decisions,â Rogin says. âAnd there are people who are still employed and earning the same income they did before, who have more options as they decide how they’re spending their money now.â
Even if youâve been spared serious financial challenges, you should still consider updating or creating a household budget or spending plan. This will allow you to determine how to save more money in the stay-at-home economy.
Rogin and Dawson encourage you to use this opportunity to ensure youâre at least staying on track to meet your savings goalsâand at best, shortening your savings timelines. Itâs also a chance to make sure that your spending habits, which have likely changed as youâve spent more time at home, are maximizing your happiness.
Below, we break down insights from Rogin and Dawson into four actionable steps you can take to save money in quarantine while living the best life possible. It all starts with taking an objective look at how your spending habits changed as you transitioned to a more domestic lifestyle.
Read on to see how to save more money in the stay-at-home economy by creating a new household budget:
1. Compare your spending trends before and during quarantine
As you set about creating a household budget for an at-home lifestyle and determining how to save more money in the stay-at-home economy, start by reviewing your spending.
âMost people donât really know how much money theyâre spending, whether times are good or bad. But it can really make you feel calmer to know what it takes to run your lifestyle.â
Dawson encourages you to refer to your debit and credit card statements to analyze the differences between your spending before staying home became the norm, and after. âYou can compare it and contrast and have observations and discussions around what changed,â she says. âWhat do you like that you want to keep going, and what do you not like about it?”
All you need, Dawson says, is a spreadsheet to total up your major expenses, such as housing, utilities, transportation, food and dining, travel, shopping and entertainment. Then, subtract the sum of those costs from the money you earned (aka income) over the same timeframe.
Do this exercise for three months of spending before quarantine and then again for three months of spending during quarantine. Youâll be able to compare the data to see whether you have more or less disposable income as a member of the stay-at-home economy.
Rogin notes that it can be a little scary to examine your finances like this, but thereâs no reason to feel anxious.
âMost people donât really know how much money theyâre spending, whether times are good or bad,â she says. âBut it can really make you feel calmer to know what it takes to run your lifestyle.â
If you see that your disposable income decreased while in quarantine (or that you no longer have disposable income at all), then youâll need to find ways to cut back on spending if you want to keep your savings goals on track. If your extra cash increased and youâre actually saving more money in quarantine, then you can start to consider how you might hit some or all of your savings goals more quickly.
Either way, you still have work to do as you consider how to save more money in the stay-at-home economy. Rather than focusing on external factors that are out of your control, Rogin and Dawson recommend that, as a next step, you ask yourself what matters most to you.
2. Ask yourself how your spending habits impact your happiness
Rogin considers the distanced, more remote way of life as a chance to reflect on whatâs really important in order to create your household budget. One example she points to is how many people have been cooking at home far more often than they once did.
âMaybe youâre spending more on groceries, but thatâs less than you were spending on eating outâand you enjoy it,â she says. âYouâre spending more time with your family. Youâre eating more healthily. So it gives you the opportunity to really assess your budget in a different way.â
Another example is travel. Rogin says that some people have told her that they really miss it, but others have been surprised to find how happy they are to pump the brakes on their jet-setting ways. In addition to saving money in quarantine from reimbursed travel and no more expensive trips, itâs allowed them to slow down and enjoy their time at home with family.
For her part, Rogin found that she wore the same two pairs of shoes during quarantine because theyâre comfortable, and no one can see them when sheâs video conferencing during work. As a result, Rogin cut this expense from her stay-at-home budget.
Whether youâre facing a cash shortage or surplus from more time spent at home, Rogin says that extending this line of thinking into a âvalues-based spending planâ for the stay-at-home economy will allow you to direct your money to what matters most to you, while diverting funds away from what doesnât.
Once you add up the expenses that are no longer necessary in your stay-at-home budget, itâs time to put that money to work.
Tip: When looking at quarantine spending, donât get too granular
Dawson underscores that evaluating spending patterns can be an emotional exercise. If youâre reviewing your finances with a family member, partner or spouse, try to resist the urge to nitpick every purchase. The trends should be easy enough to spot from a birdâs-eye view.
3. Put your stay-at-home savings toward your financial goals
Dawson and Rogin recommend having a plan when youâre trying to figure out how to save more money in the stay-at-home economy. That plan should include what youâre saving for, as well as where youâll keep the funds as they add up.
Rogin recommends framing your financial goals from a positive angle. For example, when you create a household budget, instead of focusing on cutting spending, you can set a goal for how much extra money you want to save.
If you have children or live with a partner or spouse, Dawson notes that this goal-oriented approach can help get them involved. The objective might be to start an emergency fund to ride out unexpected headwinds. Or, the focus could be on saving up for a big vacation to look forward to when travel restrictions ease.
When deciding where to keep your savings, a standard checking account wonât allow your money to grow like a high-yield online savings account will. Rather than pooling the money youâve saved in quarantine into one account, Dawson suggests opening multiple savings accounts, one for each of your savings goals.
âBe really clear about what each savings account is for,â she says. âThen youâre more likely to fund it.â
Of course, luxury savings goals like a vacation should not take priority over your long-term savings goals, such as retirement or college funds.
4. When saving money in quarantine, remember to support those in need if you can
If you are saving money in quarantine, Rogin suggests considering all the benefits of earmarking extra cash for philanthropic causes. It could go directly to the local small businesses you love that are hurting for revenue. Or it could go to any number of nonprofit organizations that are doing good in the world.
âSo many people are in need now,â Rogin says. âThere are so many beautiful ways that can help you feel like youâre making a difference for people by reallocating some of that money towards causes and people that you want to support.â
How will you start saving money in quarantine?
The stay-at home lifestyle may not have been in your plans, but you have the opportunity to gain control of your finances inside your home by creating a household budget that works for you in this new reality.
When you analyze, assess and optimize your spending and consider how to save money in quarantine, youâll be in as strong a financial position as possible when life gets back to normal.
If youâve been fortunate enough to save money in quarantine, consider starting or adding to your emergency fund. Not sure where to store your savings? Check out the four best places to keep your emergency fund.
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