Three areas to help you recover from your 2020 losses in 2021
Record high unemployment and financial stress in 2020 will impact most people for the months to come. Money expert Ja’Net Adams shows you how to reduce the impact in 2021.
GREENSBORO, NC – 2020 has been one hell of a year and there is no doubt that we are all looking forward to a much better year 2021.
But before you fully jump into the New Year, a word of warning: the financial impact of last year could last for a while.
Money expert Ja’Net Adams has shared with you ways to turn the corner and avoid another financial blow this year.
“2021 is here, but there are still traces of 2020, especially when it comes to our finances,” said Adams who wrote the book, The money attractor. “There are three areas that will make you feel like 2020 is still here, but I want to help you manage them so that there are no financial surprises.”
Adams divides these areas into three groups of people who have experienced the biggest setbacks.
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1. Those who have student loans:
“Although the latest stimulus bill has passed, there is nothing in it that extends the grace period for student loans. If you have federal student loans, January 31, 2021 is the last day you have 0 payments. , 0 interest and no garnishment on payday. During If you have private student loans and federal student loans, now is the time to plan the amount of money. You will have to pay both payments to stay up to date. As the Education Department extends the current Jan. 31 deadline, you’ll need to be prepared to start paying off the debt, ”Adams said.
2. Those who are / were unemployed:
Unemployment in 2020 was very different from any other year due to the CARES law which provided for super charged unemployment benefits. Those who were unemployed were eligible for their regular unemployment benefits but could also receive an additional $ 600 per week. . This extra $ 600 per week week in most cases provided individuals with more money than they usually earn each month. This can become a problem during tax season. If you have earned more money due to this. of the extra $ 600 a week, you could have a reduced refund check, no refund, or even owe money, ”Adams said.“ To be prepared for any of these scenarios, make sure you save money. money in case your taxes give you a financial surprise. If you are still unemployed, now is the time to pass your information on to the employment office to make sure everything is going well. for the additional $ 300 per week that was approved in the last stimulus bill. “
3. Those who are business owners:
“There is a new round of funding for the Paycheck Protection Program for small business owners with the passage of the latest stimulus package. Two groups are eligible for funding. Those who didn’t get PPP the first cycle and those who got the money the first cycle but saw a 25% drop in business. Both groups can apply. There is one difference in PPP funding for restaurants this cycle and that is that restaurants can claim 3.5 times the monthly salary costs compared to all other businesses can only claim 2.5 times their salary costs.
Adams says that if this is your first PPP request, you should do the following:
1. Attend PPP webinars provided by SBA / HUB offices so that you can fully understand what are the requirements for PPP.
2. Contact your bank or credit union to inquire about the papers and documents required for the process to run smoothly.
3. Be prepared to work with other PPP services if your financial institution is taking too long. These services during the first round of PPP were Paypal, Square, Intuit and many more.
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Remember that your goal is still to hope for a better 2021, but be prepared because no one knows how long we will feel the impact of an unprecedented 2020.
You can find more advice from Ja’Net Adams, here.