By Katrina Esco
People’s Trust Federal Credit Union

About three weeks ago I attended a luncheon where financial expert Lynnette Khalfani-Cox discussed financial planning. During her presentation she highlighted how few people are prepared for what she calls,“The Dreaded D’s” –death, divorce, disability, disease. Unfortunately, at the time, none of us knew how quickly we would be faced with the last one, disease. And none of us imagined we would be facing it in the form of a global pandemic. Yet, here we are.I acknowledge it’s late in the game to talk about preparing for an emergency. The emergency is now. While we look forward to the federal relief on its way, here’s what you can do today (and every month from here on):

1. Tally up your monthly expenses.

· How much is going out

· Where is it going

· What day is it due

Do this for next month. This month is already over.

The easiest way to do this is to keep it simple: list the essential and put the dollar amount next to it. List anything that is a priority for you and how much it will cost for the month. When you’re done, add the amounts together and circle your total.

2. Tally up your income.

· How much do you have right now

· How much is on the way (and from where)

· When is it coming

Do not freak out right now. You need your brain to get through this part. Add up your income then plug the numbers into the following equation:

Income – Expenses = Your Situation

If you have any money left after subtracting expenses from income, that’s great. You’re probably going to be ok. If you break even, start looking at what you can cut. Your priorities will change when you review your expenses and you may begin to see things you can skip for the month to free up cash.

If your expenses are greater than your income, here’s what to do:

1. Eliminate any expenses you can. Move payment dates. Negotiate reductions on fees and interest. Keep track of due dates and communicate with your creditors even if it’s to say nothing has changed.

2. Call your financial institution and see what options are available. In response to the pandemic, my company has made emergency resources available to our members including relief loans with no hard credit pull, skip a pay on auto loans, and no penalty on CD withdrawals. See if your financial institution offers similar aid.

3. Barring any major obstacles, find another revenue stream. Sell something. Provide remote services. Take on a part-time role with companies hiring through the pandemic. Don’t stop looking until you land something.

4. Lastly, imagine the worst-case scenario and make a plan for it. Be sure to ask for help.One significant benefit to evaluating your situation is the sense of control it brings. You’ll either realize things are not as overwhelming as they seemed, or you’ll discover a misstep quickly enough to prevent it or recover from it. This is a basic, but solid exercise that will get you through the next month. We’re not entirely past planning but we are past planning without acting. Once you take stock of your situation take the first step.Bio – Katrina Esco is an account executive on the business development team at People’s Trust Federal Credit Union. She partners with businesses to bring Financial Wellness at Work, a free benefits add-on designed to help employees achieve financial prosperity

As the coronavirus crisis continues, the one certainty is that the situation changes daily. Your or organization may be grappling with the ongoing challenge of working with remote teams, servicing customers in new ways, and possibly even survival.  This is a time for businesses and organizations to level-up day-to-day communication with all stakeholders.

It is vital to provide clear, factual, and useful communication. If you are a business owner or leader, you must continue to communicate with your customers, employees, vendors, board members, investors, and others. Do you have a plan in place? Are you making adjustments based on these new conditions?

The messaging you were using a month, or even a week ago simply may not work today. You may need to update your messaging daily or weekly. You may have to change how you do business. Flexibility and honesty are your best tools.

Here are 6 tips to effective communication during a crisis:

Have situation awareness. Be aware of what’s happening in your community and keep up with the daily changes to health advisories and guidance from local officials. Be prepared for any scenario and create messaging for each outcome so you can instantly communicate with your stakeholders as your situation changes. Remain honest, factual, and calm, and check-in with your stakeholders regularly via phone.

Listen to your employees. They are anxious about their livelihoods. Prepare appropriate and clear messaging. Set up regular briefings via Zoom or send a daily email. Establish a regular schedule so your employees can hear from you firsthand how the company is operating. Allow them to ask questions and share their feelings. Remain honest, factual, and calm.

Don’t be tone-deaf. Make sure the tone of your message is appropriate. Now is not the time to push sales in every social media post. When talking about the coronavirus, stick to the facts, and be serious. It’s okay to offer some content that is lighthearted and encouraging but doesn’t forget people are getting sick and dying while others are deeply concerned about their future.

Provide information regularly. Keep stakeholders updated on developments that affect your company’s operations. Make sure your employees are prepared for all eventualities. Let your customers know you’re still in business, and if your products and services may be delayed. Setting expectations and avoiding surprises as much as possible will get you through the long haul and set you up to recover after the pandemic passes.

Offer resources. It is easy to hit information overload. And a lot of misinformation is circulating right now. You can help your stakeholders by providing them with accurate and timely information that comes from credible sources. Provide links to organization websites (local elected officials and health departments, the CDC, local news outlets, etc.) that will help them understand the virus, what’s happening in the community, how to manage stress, and more.

Be creative. Maybe your company can help the community. Do you have food to donate? Can you help with an existing initiative? How about other services? Lend your expertise to others. This is a good time to spread the word about your business in a positive manner, especially if you offer something to help people get through the next weeks or months.

Your leadership skills will be tested daily. Will you rise to the occasion? Using messaging that informs and is helpful will put you ahead of your competitors. How can you best serve your customers during this time? Understanding how to reach them and what message resonates with them will be key. Make adjustments as needed. Be responsible. 

Most importantly, be kind. We are all in this together and we will get through it.