Yesterday the rent was due for millions of Americans for the first time since they were put under quarantine.
We are being told to remain indoors as much as possible and to maintain a safe distance from other people. For some of us, that means working from home. For millions of others, it means they can't work at all. On top of that, the quarantine is causing steep drops in revenue for most sectors of the economy, which means that even a lot of people who can work remotely are being laid off and losing their employer-provided health insurance amid a deadly pandemic. The result is that, for millions of people, paying the rent would require foregoing food or other basic necessities. For others, paying the rent isn't even on the table.
In just the last week, 6.6 million Americans applied for unemployment insurance. That doubled the new record set the week before, making for a total of 10 million newly unemployed Americans in a span of two weeks—and that doesn't even include employees whose hours have been drastically cut or workers removed from the so-called gig economy.
Fortunately, there are some understanding landlords who are offering massively reduced or eliminated rent payments. Others, sadly, are issuing statements threatening tenants with eviction if they don't pay, or insisting that any payments that are deferred will have to be paid in full when the crisis is resolved—despite the obvious fact that the economy is never going to provide back-wages for people who are newly out of work.
My landlord said he sympathized with my roommates and I losing our jobs. He then suggested we move out now since we… https://t.co/esQNvjiZb5— gabi (@gabi)1585271520.0
Meanwhile, the government payments that are supposed to help people through these difficult times are being given out based on 2018 tax returns—so if you made a lot of money that year but are flat broke now, you're out of luck. Worse still, if you aren't already signed up to receive direct deposits from the IRS, your check could take up to four months to arrive. Coupled with a broad lack of necessary protections from eviction and foreclosure, the whole situation is looking grim.
With all this going on, a lot of people are not going to be able to pay their rent. The idea that all those people should face eviction or be buried in debt as a result is absurd—who would move into all those empty apartments at a time like this, anyway? While landlords may want to believe that they can be insulated from the economic effects of quarantine, that's just not how this is going to work.
Obviously, many landlords have mortgages that need to be paid—the fact that a mortgage freeze has not already been implemented throughout the country is shameful. But in the case of rental properties, that kind of relief is not nearly as urgent as the need for all housed people to keep their homes—and for adequate housing to be provided to the homeless. Landlords must be made to see that they have a duty to relieve some of the burden on their tenants. Even those of us who are able to pay rent: Should we?
So the company we pay our rent to sent out a very condescending mass email to all tenants about paying rent and for… https://t.co/5UY367ZXZ9— Nai (@Nai)1585711758.0
Each situation is unique. Are you renting a few rooms in a nice old couple's house and still getting your usual paycheck? If so, you should probably give them rent. But if you are living in a large apartment complex and receiving threatening mass-emails from the management company, then you should talk to your fellow tenants and—even if you're able to pay—consider participating in a rent strike. Likewise, if you are struggling to make payments and feel like you're alone, reach out to your fellow tenants. Find out if they're struggling too, or if they're willing to stand with you.
You may feel it's too late to start this approach, but April 1st was just the beginning. In situations where one person has power over a large group of people—as in employee-employer and tenant-landlord relationships—collective action is necessary to correct that imbalance. Any individual tenant could easily be intimidated by a hard-nosed landlord or a large management company, but if all the tenants are able to communicate—either over the phone, through email, or in person from a safe distance—and coordinate their action, they have the power to negotiate terms. Organizations like the Los Angeles Tenants Union, with the "Food Not Rent" campaign, are helping in that effort, but as individuals we also need to step up.
Landlords, as well as the banks that collect their mortgage payments, must all be made aware that they can't bully working people into giving up more than they can afford right now. This is not business as usual. This is a crisis. Solidarity among renters, workers, and everyone at the bottom of the food chain will be necessary if the people with the power in this country are going to be prevented from pushing all the negative consequences downstream. If that means rent strikes, sick outs, appropriation of empty houses for the homeless, then that's what we'll have to do.
As much as we are isolated in this quarantine, we have to find ways to come together and support one another if we're going to get through this.
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While it's possible to be frugal with many aspects of your lifestyle, there are certain events and possessions that will require you to spend a substantial amount of money. Thus, a wise course of action is to begin saving well ahead of time while thinking about your goals for the future. This way, you'll be able to maintain a stable financial state even when faced with those large expenses. The following are a few major life purchases that you should plan for.
Marriage is a joyous occasion that many people look forward to. However, a wedding can be quite expensive, often costing thousands of dollars. Your family and your future spouse's family will often contribute to covering this, but you should still prepare to spend a good deal of your own money on the ceremony. If you're in a serious relationship and are considering marriage, you should plan where the funds for the wedding will come from and take the necessary actions to accumulate them. It's also crucial to discuss financial matters with your partner, since your property will merge once you get married.
A New Car
Automobiles remain one of the top modes of transportation. As a result, you may want to purchase a new car at some point in your life. Although you may be fine with an old or used vehicle at present, you may one day be motivated by a desire to acquire something nice for yourself or by the practical needs that arise as you raise children. Whatever the case, obtaining a new car is a major life purchase that you should plan for.
In addition to setting aside funds to eventually put towards a vehicle, you should also aim to build you credit score. This is because your credit score will determine your available car loan options. The higher your credit score, the more you may be able to lower your interest rates on your car.
Owning your own residential property is a worthy objective that you may hope to make a reality one day. Ideally, you should save about 20 percent of the total cost of a house before you buy it. This will allow you to make a larger down payment and thereafter face less interest on your mortgage.
As with acquiring a car, the mortgage options that you'll have can change based on how strong your credit score is. You'll want to increase your score as much as possible in the years leading up to buying a house so that you can get more favorable interest rates. In addition to contemplating down payments and mortgages, you must also remember that you'll need to deal with property taxes, insurance, maintenance and repair fees, and sometimes homeowners' association charges.
It's also necessary to hire a real estate agent to help you with the buying process. There are different types of real estate professionals. You should know how to distinguish between buyer's agents and seller's agents so that you can obtain favorable prices on homes as well.
Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.
Discussing Money Motivations
As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:
- How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
- The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
- What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
- How do you go about consulting each other before making purchases over a certain amount?
Establishing Financial Goals
After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?
Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:
- Student loans
- Car loans
- Future children
- A house
- Medical bills
- Delinquencies on credit reports
- Vacation and rainy-day funds
- Emergency funds
The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.
Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.
It's the dream: money you can count on to keep rolling in, even while you sleep.
Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.
Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.
A YouTube Channel
You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.
You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.
If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.
What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.