At a time filled with so much uncertainty, it is critical to remember the following mantra: DO NOT PANIC! DO NOT PANIC! DO NOT PANIC!
Say it with me, one more time. DO. NOT. PANIC.
The last few weeks have been nothing short of chaotic due to the outbreak of the novel coronavirus (COVID-19) which has swept the globe, infecting over 108,000 people with more than 3,400 deaths. Currently, with more than 500 confirmed cases and 22 deaths in the United States we have moved past containment and have been told to be prepared for disruption to our daily routine.
What does this mean?
It is possible you may have to work from home, and in the event you are exposed to the virus, feel sick or are near someone exhibiting signs of illness, be prepared to self-isolate for up to 14 days. This means having enough food and supplies on hand to cover every member of your household in the event you can't leave. Here is a short list of items to give you an idea of what you should have in case of an emergency or quarantine:
- Bottled Water (1 gallon per person for each day you plan to be quarantined)
- Anti-Bacterial Hand Soap
- Medical Supplies (contact lenses, contact solution, hearing aid batteries)
- First Aid Kit (bandages, disinfectant)
- Prescription Medication (30 day supply) plus any OTC (over the counter) meds you might need like Advil, Tylenol etc.
- Canned Foods (meat, vegetables, in liquid that can be used for cooking)
- Cereal, Rice, Beans, Oats (oatmeal, grains)
- Chocolate or some type of alternate sweet (studies show the importance on maintaining optimal mental health)
- Latex gloves, N95 face masks (respirators)
You can also follow the latest news regarding Coronavirus in New York state here.
Why does this seem so bad?
Lack of preparation, transparency from the CDC, clear direction from the government, and a President who fails to inspire confidence in the American people has caused panic across the country in the form of unnecessary hoarding of household supplies like toilet paper and bottled water, xenophobic discrimination and hate crimes against people of Asian descent. It has also rocked the global financial markets as traders desperately seek answers and a bottom to the rout.
By 10pm EST yesterday, it was clear that the world was in for another rough week. U.S. Stock market futures were down near 5% overnight which triggered a halt in trading. Over the years, certain measures were put in place designed to prevent panic from tanking equities markets and give investors time to digest the latest market news. Historically, it has worked exactly as intended and is a critical tool in times of great volatility. The Dow Jones Industrial Average (DJIA) was down 1,200 points in pre-market trading and global markets were in a free-fall for the rest of the night.
And then the market opened......
For the first time since 1997 trading was halted on the New York Stock Exchange this morning for 15 minutes following a 7% drop in the S&P 500. The Dow Jones Industrial Average (DJIA) was also down over 1,900 points when the 'circuit' was broken. Designed to prevent a free fall in equities, 3 "circuit breakers" were put in place in the event certain benchmarks were hit, the first of which occurred at 9:35am EST (only 4 minutes after the opening bell!). Trading resumed at 9:49am. If stocks continue to fall and hit a 13% drop for the day, another 15 minute pause will take place. In the event that stocks retreat more than 20%, the market would be closed for the rest of the day.
Oil War For the Ages??
More bad news originating from last week's failed OPEC+ alliance meeting sent oil prices plummeting as a price war broke out in Riyadh. Saudi Arabia has announced a massive price cut for their oil, while sources claim they plan to simultaneously increase production to more than 10,000,000 barrels per day with the possibility of exceeding 12,000,000 barrels on some days. This "Shock & Awe" tactic is a desperate attempt by the Saudi's to increase marketshare worldwide. In response, Russia has indicated they will also increase their production to maximum levels. And the price war has begun.
The last time a price war this serious broke out was during the first Gulf War in 1991. As of the opening bell this morning, the price of a barrel of oil dropped more than 30% ($27).
What does this mean for the west?
Quite possibly the end of the U.S. Shale market, for starters. With the price of oil below $30 a barrel, oil wells in West Texas are now operating at a loss.
Since 2014 the price of oil has been subject to wild volatility as the west became one of the largest exporters of shale oil in the world and price manipulation out of Saudi Arabia saw the price of oil drop from $100/barrel to less than $40. Despite a few brief periods of upswings, it still has not returned to normal levels and is showing no signs of recovery.
It is important to remind yourself that things will get better. Do not panic. Life will get better, the world will come to its senses and you just have to give it time.
Hang in there.
The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.
My buddies and I always try to make it out to a game, but we never really care which one we end up at. Obviously we have our favorite sports and teams, but it was rarely about what game we went to or who we saw playing. It was about watching the game live.
In the early months of lockdown, all we had was Korean baseball, and trust me, we loved it. The only issue was, none of us had any idea what the commentators were saying. Even then, a few of my friends weren't huge fans of baseball. They were into sports like football and basketball, ones that moved at a quicker pace with less down-time in between plays.
We decided to see if there were any other events going down and came across horse racing. Yes, horse racing. It was perfect--short, fast-paced, and most importantly, an opportunity for betting.
I had never really considered watching a horse race any time other than the Belmont Stakes, but the prospects of the sport seemed exhilarating. Even better, with horse racing we knew we could still recreate the atmosphere of a race track. Salty snacks? Check. Stale beer? Check. A simple and easy way to bet? Check.
One quick Google search later, we came across TVG, powered by FanDuel. It's an online betting platform that takes you right to the heart of the action. We were a little apprehensive about using a mobile app to place our bets, but TVG's ability to bet on live horse races from all over the world was too good to pass up.
Here are 5 reasons why we are obsessed with horse racing thanks to TVG:
1. Betting has never been easier
Use your phone or computer to watch and bet on live horse races in real-time. TVG offers a bunch of features to make betting even simpler--live odds and handicapping tips leverage recent learnings to help you make your best bet. Not to mention, TVG's exclusive race content and wagering guide offers an under-the-hood look into the strategy behind horse race betting.
2. The biggest selection of horse races out there
If you're looking to drop a little dough on a horse race, chances are your best option is your local race track. But watching the same few horses races over and over again isn't the most exciting thing. With TVG you have access to over 150 tracks worldwide with races happening consistently throughout the day.
3. Get a generous sign-up offer when you place your first bet
Once you register your account, you will be eligible for a $200 risk-free bet. All you have to do is place your first bet and you're covered. If you happen to lose, TVG will insure you for up to $200 as a sort of wagering credit. I may have been a little trigger happy when placing my first bet, so having this insurance was a great perk. There are also a bunch of promotional offers available year-round.
4. Making deposits and cashing out at the touch of button
With a ton of payment options such as PayPal, BetCash, debit/credit, wire transfers, and other third-party services, making a deposit is a breeze. But what about the payout? Depending on your deposit method, your withdrawal will be available in a few days. No more waiting in-line to collect your winnings!
5. Watching live races with your friends while betting is exhilarating
Even when we were watching Korean baseball, Zoom calls with my friends were a little dull.
With TVG, we haven't had this sort of fun in months! Every weekend we'll turn on a race and throw our bets in. After a few races, and quite a few drinks, we'll tally up our winnings to see who won the most! Sometimes it's not even about making money, but just having a good time.
TVG is the perfect way to add a little excitement to an otherwise mundane afternoon. It introduced me to the world of horse racing, a sport I never would have considered otherwise.
The races just keep ramping up and thanks to TVG, I can always get in on the fun.