Finance in Nonfiction: Our COVID-19 Plan
Being a part of the FIRE community is a little bit like being in a financial prepper community. We plan for the unexpected, but we’re just as shocked as anyone when the unexpected actually happens. COVID-19 has been dominating everyone’s lives and is really highlighting the inequalities in American healthcare, labor laws, and other economic systems. With all these things in mind, we are so incredibly appreciative that at our ages (26 and 30) that we even have had the opportunities we’ve had, including having the knowledge and resources to start our FIRE journey earlier than some of our peers. This is how we are adapting to the financial crisis brought about by COVID-19 and dropping oil prices:
The Details:
*I have actually been trying to move jobs (and cities) post-tax season, so I have been working on applications and interviews for the past month. As things have closed and businesses anxiously await, I anticipate this process taking twice as long. I had also planned a sabbatical (similar to my own brand of quarantine) and I’m now leaving that up to the universe.
*My husband had a HUGE achievement as a commercial diver in the oilfield, one that included the largest paycheck he has received in ten years, which allowed us some financial freedom. However, with the uncertainties in the oil & gas industries, we have to plan as if another oil crisis is coming – a depressing concept, but we want to learn from the past few years and get ahead of this as much as possible.
The Plan:
We chose to take the additional monies that we’ve received and build up our emergency fund. I’ve talked about how to calculate your emergency fund number before, and this definitely counts as a true emergency - not a foreseen expense. While we’ve been working on this steadily over the last year, we have made this Priority No. 1 by a longshot. I paid our bills for this month and next, and we have enough to last us through June without changing lifestyle; through July and August with slight reductions in variable expenses (less expensive groceries, no eating out or delivery, limited alcohol and online shopping, and the like). It isn’t six months like we should have, but we are so aware that most people don’t even have that level of freedom.
We have offered to cover basic living expenses for a few select friends in the hospitality and entertainment industries, as they have found themselves with unemployed with no emergency fund or healthcare. We are appreciative that we can help even a little during these times, but these are hardworking American millennials – who have little government or economic support for basic necessities. Things need to change. This isn’t about politics, but basic human concerns. These are healthy 25-35 year olds, in college, working two to three jobs, and they still do not have access to working healthcare or resources that would allow them to have even a two or three week mandated break. This is insane. The systems in place are so broken that the average citizen – not even those in difficult situations – can’t afford basic health and security.
In addition, we are trying to support local Asian businesses just in case there is any discriminatory practices disproportionally affecting our neighbors in our corner of the deep South.
When looking at our bills, I have assumed that we will have no money coming in for at least two more months, as if I stopped working at the end of this week. I encourage others to do the same. While it is still unlikely this will happen, this is one situation were over-preparing can only help. I can spend that money if I would like once things return to a more stable condition and right now, peace of mind is as valuable as… a 32-oz. bottle of Purell.
I will continue to work this tax season as usual until I have been informed otherwise and we will adjust our mindset to be one of positivity, gratitude, preparation, and bounty. If financial concerns and health concerns could be taken away, there are so many beautiful things about this situation: an emphasis on familial connections and health, self-care at home, a Mother Nature-sanctioned period of introspection and recalibration, and a love of community. May this time be a gift and not a burden to you and yours.
* Cover photo credit: Unsplash Annie Spratt 
