Sunday, May 24, 2020

The Four Walls

I know many of you reading are regulars and for the most part I think you are all still employed. However, if there is anyone out there who has lost their employment, or has reduced hours I want you to know about the four walls that can keep you fed and in your home for as long as possible.

The Four Walls is part of Dave Ramsey's Financial Peace University. There are six additional baby steps, but first you must take care of your four walls before you pay anyone else.

These four walls are:

1) Food, you must use any money you have to first provide food for you and your family each time you are paid, or receive money.

2) Utilities, you want to pay your electricity, gas and water bills, so these basic services are not turned off. Television subscriptions and internet service are not considered must have utilities. If you are behind in making payments you should attempt to get caught up if possible. At a minimum be speaking with the utility service to make sure you are meeting the minimum payments that will keep services going. They may be able to work with you on a payment plan.

3) Rent or Mortgage, you want to continue making payments in full if possible to make sure you are not evicted or foreclosed on. Catch up if possible, but also contact landlord or mortgage company to see what options are available to you. They need to know that you have had reduced hours or are now unemployed. Generally, the more honest you are the better.

4) Transportation, fuel to put in your car, the car payment and insurance. You would much rather have a default judgement on your credit card than have your transportation repossessed and you cannot get to work. You may have to at some point make sure your vehicle(s) are not more than you can afford.

This is not all encompassing for every situation, but it's a place to start when you are in overwhelm with your bills. Unemployment is hard. You may have to try other types of jobs, find a side hustle, sell some of your belongings, but make these happen first. All other debt can be handled once you get a handle on these most basic necessities.

And you can get more information about Dave Ramsey's and his financial advice by doing a search online, there's a website, books, a radio show and YouTube clips of his show. I'm cheering for you!

Is anyone in this situation or know anyone who is? What questions do you have? What advice would you give?