The following is from a live Youtube where I discuss budgeting during a crisis. We discuss the four walls, essential budget items, how to handle creditors and debt during this time as well as some ways to make some extra money. The Corona Virus has us all in a panic but I’m here to help you. If you have any questions, reach out using the links below. #debt #coronavirus #budget To schedule a free 15 min call: https://JrFinancialCoaching.as.me/DFRC Instagram: https://www.instagram.com/jrfinancialcoach Show Instagram: http://www.instagram.com/moneybusinessreselling To leave a message for or to support the show: https://anchor.fm/mbrradio
joey ruffalo 0:43
Hey everybody, Good evening. Welcome to the first show on this new channel MBR radio money business reselling. I’m your host Joey Ruffalo from J.R. Financial Coaching. Thank you all for joining me those who have been with me before know that I was on another channel previously, I needed to take a break step back from the YouTube world for a while, and kind of reassess things where things were going for myself and the pressures I was putting on myself to do this. And I needed to just kind of chill a little bit. If you were a fan of that channel, thank you so much for supporting us during that time. If you are looking to support us still, please feel free to subscribe here. And feel free to subscribe to Robin as well, because she was awesome. She was great to deal with. Please support us both. We’re both doing different things right now. It’s not to say we might not do something together in the future. Who knows? But right now just kind of floating here. My main focus is doing podcasting. I’m going to get into that a little bit, but I wanted to jump on here. On YouTube to talk about what’s going on right now with the coronavirus situation, and money. So a lot of people are in situations where they might be out of work, they might be in a little layoff period. I think they said like two weeks and then it’s going to be three weeks now it’s April 7, and then it might be who knows that every state’s different. So I’m here to kind of give you a little sense of what to do, like kind of how to how to process during this. Everybody’s gonna process differently. I’ve had a lot of people call me recently that we’re kind of just going back to the basics. And we might be further along on their debt snowball method or paid off their bills or just a sense of prioritizing things. Now, if you’re home, and I’m gonna go over a little quick webinar, pre brief PowerPoint, and then we’ll take some questions and talk a little bit, just kind of how to navigate this time. See what the what the deal is basically. So I hope it’ll bore you too much. I don’t have a weird personality here, but I’ll try my best to keep you guys engaged. I appreciate it. Like I said, you have 15 people watch right now I totally appreciate you guys watching and subscribing. There’s going to be some links below. Shameless plug right now even though we’re doing something important but shameless plug. So below are links to a coaching link. So it’s a free 15 minute call if you have any questions or things you want to go over or maybe set up a session for later but you want to just have a quick chat on something. There’s a link below to schedule something there. There’s also links below for the the Instagram for my coaching Instagram is Jr. financial coach on Instagram. Also, the show has its own Instagram, it’s at money business reselling. And then there’s also a link to the podcast site. Right now the podcast is hosted by anchor so on that site there you can go And listen to whatever’s up there right now. There’s nothing there right now except the trailer. A couple of shows will be up there shortly. And then we will hit the ground running with that I got some great guests lined up. It’s a great interviews already in the can ready to go. But also on there. What’s interesting cool is there’s two things. One, if you want to support the show, there’s the link there to support the show. Also, there’s a place to leave a message you can leave up to a minute message on there. I encourage you guys to use that. Reach out to me there. If you have any questions or something you want me to answer in a future podcast, a future live? Comment on there, write it on there. It’ll go right to me and then I need to credit you or ask your question. Also, I want to plug on Facebook. Thanks for guys for joining over there. I was on the thrifty business the other day from with Jason and Debbie. Thank you for having me on there and allowed me to talk about this a little bit. My side hustles I also have a Facebook group that’s just rolling out. It’s called the debt free reseller community, it’s for people who want to operate their business debt free, are operating their business debt free, or want to learn how to resell in order to be debt free. So I encourage you guys to join that. We’ll talk money in there, we’ll talk stuff, I’ll do some special lives in there and have a few other few other things down the line as far as you know, some some, some good stuff cooking. But what I want to do is get right into the sort of PowerPoint thing that I put up here. Let me let me see if I can navigate this year. Application applications Sorry, I thought to myself a little bit long doing this.
joey ruffalo 5:46
Here we go. Make sure I’m on the right page. We’ll get started shortly here.
joey ruffalo 6:00
Right. So, budgeting through a crisis. So a crisis could be what we’re going through right now, as obviously a crisis. But these steps also apply mostly to or it could also apply to impending jobs, job loss, pregnancy, lifestyle changes coming up, you know, you’re gonna maybe move you need to get some money together. So these these concepts in this technique could apply to that as well. But please, you know, for right now, we’re gonna go through the process and stuff and go from there. But so project through crisis. All right.
joey ruffalo 6:49
So you hear a lot of talk now on the news about essential versus non essential so we can get this in full screen here. There we go. Essential versus non essential. If you’re under quarantine the court house quarantine or stay the stay at home order so we have right now. So you have essential workers versus non essential workers. If you need to be out, then you can go out if you don’t need to be out, stay home if you have essential work that needs to be done like post office, food shopping go out if you want to just drive around for the sake of driving around or try to do things. That’s not essential stay home. So we apply the same concepts, right. So essential stuff right now you’re going to take care of your house food, water, gas, electric, those your four main things you’re going to take care of. You’ll hear me refer that a lot. It’s the four walls, four walls around anything that takes place in your house. So you have a roof over your head. You have food in your deli, you got water to drink and take baths with shower and you got heat and electric or air conditioning depending what time of year it is right? Your non essentials. Your non essential things are like clothes, because we all have a closet full of clothes. We don’t need to buy any more right now especially during this time. Plus a lot of the stores are closed. We can’t. restaurants. This is an interesting one actually tomorrow is considered takeout Tuesday. I think they call it. I think they just got an email about that takeout Tuesday is tomorrow. And that’s support all the restaurants by doing takeout through like Uber, Uber Eats doordash. And you know things to kind of support your local. It’s called the Great American takeout. So if you’re going to go out tomorrow, I give you permission, use the great American takeout, hashtag support your local restaurants. But typically, when you’re on a bare bones budget, you’re not going out to eat Anyway, you have your food budget set up, essential. So with restaurants being closed or minimal hours, you don’t need that in your budget right now. vacations, vacations, nobody’s going anywhere. Everything’s close. So you don’t have to worry about that. And then creditors. creditors are those big ones that we’re going to deal with in the next slide or two. I wouldn’t worry about paying those guys right now. Just kind of focus on your main stuff and building a good nest egg right now. Okay, gray area. I said this is the gray area because Internet TV and cell phone are one of those things where if you were experiencing a job loss, and you had to use your emergency fund, which is three to six months of expenses, or $1,000 I’ll explain that in a little bit. Babies baby steps from Dave Ramsey. So baby step one is $1,000 emergency fund. baby step two is paying off all your debts smallest to largest, regardless of the credit, or the regardless of the interest rate smallest to largest. baby step three is building that emergency fund up to a three to six months worth of expenses. Now those expenses include the essential your mortgage, your property taxes, your homeowners insurance, or medical insurance, all that kind of stuff does not include your Internet TV and cell phone because if you are out of a job your motivation should be to look for new job and not sit at home all day on the internet. Now, why it’s a gray area for these days is we are all kind of forced to sit at home. And the internet and TV and our cell phones are sort of the entertainment what we have right now. We have movies that were supposed to be in theaters coming to home streaming services that are popping up that people might want to subscribe to get kids at home, you need to do something with them to keep them occupied. Man Go right ahead and budget that in. But definitely move it from one of those other categories. You’re not eating out at restaurants, you’re not going on vacation. So take some of that vacation money and put it towards a you know, a Disney plus subscription for 699. That’s not going to hurt you get the kids occupied and everything else. The other little tip I can do during this time is a lot of the streaming services have free trials. So rotate your free trials starts as a weak download stars for a week. And then on the second the last day of the last they canceled So you don’t get charged. Move on HBO after a week move on to Showtime. Same thing with the streaming TV services like Sling TV has a week, download sling, watch it for a week, there’s your TV.
joey ruffalo 11:12
After that, go to YouTube TV, download that for a couple days, then go to failure then go to you know, just try them out during this time. So everybody’s got like about a week or so it’s perfect. You can kind of get through what you need to get through without really spending any extra money, especially if you need to cut back on bills right now if you are experiencing a layoff but you can still have the same semblance of lifestyle by just being creative. Okay, so next we’re going to go to crisis mode activated. So these are the four walls I was talking about food utility shelter, and the last one actually says transportation there. So these are the four walls that Dave Ramsey refers to if you have listened to Dave Ramsey, you know, he is a financial guy on the radio wrote a ton of books and done everywhere. Those are the four walls that we talked about. Okay, there you go. So this is the type of bare bones budget implemented when you need to stockpile cash quickly and in certain times, it’s considered like an impending job loss, a pregnancy, etc. Okay, so this is when you’re going to pay stockpile. So the stockpile ends when the crisis ends. So let’s say for example, US pregnancy, your wife is pregnant, having a baby, go to the hospital, you save up, you find out, you start saving up for the next several months, right? And when baby’s born, baby comes home from the hospital, everything’s good. There’s no problems. All that money you saved up dead and continues on in where you are in the baby steps. So if you’re not paying debt, what you’re doing is you’re just paying the minimums during that timeframe, saving extra money. Everything looks good. Then you start sending that stockpile that you save to the creditors. So for right now, what we’re doing is kind of an interesting timer in you see by the next time slide here. The difference between forgiveness in deferment. So a lot of the creditors, a lot of utility companies, a lot of your bills right now are deferring payment. They’re not forgiving, they’re deferring, which means they’re just adding it onto the end. So you don’t pay something now, but you’re gonna have to pay it later. So for example, your utility company is not collecting payment, if you’re late, they’re not going to turn it off on you right now. But when this lockdown ends, and everybody’s allowed to go about their business again, they’re gonna come after their money, they’re gonna want to get paid. So it’s important to think like, Well, you know, I’d have to pay a bill this month, I can use that money for something else. No, you have to mentally and physically set it aside and either your account or in cash somewhere. So when this stuff ends, and they asked for their money, you have the money to pay for. So that’s what locking that down. It’s gonna Do okay. Forgiveness would be more forgiving at this time. You know, we’re not you don’t have to pay the bill this month. They are, I believe they are forgiving student loan interest during this time. Therefore, during these two months or month or whatever time we’re locked down, the interest that would have occurred is not accruing. It’s just not going to be there. But again, I think it was, correct me if I’m wrong in the chat. I believe eBay said they’re deferring fees. So therefore, you’re not paying your fees this month, but you have to pay. You have to pay it back at some point. Now, a lot of companies aren’t clear on what the permit means. Are they expecting you to pay two months worth of fees next month? are they expecting you to take those fees and sort of elongate them out? You pay them over the next several months? We’re not sure yet. So definitely check with your utility companies, your cell phone provider, anywhere else and ask them how they implement this company wide. There’s nothing specific that’s going to be for specifically for you. So if you call your credit card company, you have good credit and you want to lower something to work. So they may have something out there, but they may just have a blanket policy that they’re applying to everybody. So that’s just what they might end up doing there. If you’re being harassed by your creditors during this time, now your creditors are going to be third party collection agencies. Those are the ones that qualify or are protected, protect you. Under the FDCPA, which is the federal Fair Debt Collection Practices Act is a federal debt. It’s actually the Fair Debt collections Practices Act. That’s your friend, that sort of the government’s way of protecting you from dealing with creditors and how creditors can deal with you. Now, those creditors are only third party creditors if pg&e is your they’re your utility company and they start calling you asking for money. This doesn’t apply to them, if it’s a business that it doesn’t apply to them. But if it’s a bad credit card from three years ago, and it’s sold off, and you’re going
joey ruffalo 16:10
to, they’re asking for their money back. This applies to that. Okay, so this is a next steps to protect you from abuse, such as restricting time a creditor can call you after 8am. And before 9pm, they can’t call you at work, once you tell them not to, they can’t harass you or anyone else. And if you send them a letter in writing, letting them know that you there are only to communicate with you through writing, they are not allowed to call you as well. And if they do, there are ways that you can get compensation through filing a complaint or and or a lawsuit to have them stop. So again, this will only apply to third party creditors. It’s not going to apply like eBay’s not going to call you if they call you at certain hours. This doesn’t apply to them unless they sell that debt off. Now what I want people to be careful of especially during this time is calls from her Ratana harassers, but what’s the word? People who got on Blank blanking if somebody in the chat help me out here. People scammers, scammers, like that scammers for some reason people who are scammers, who are going to call for some sort of charity relief fund or were from a local company, it’s going to take care of your bills for you. Don’t worry about this. Just give us your information. Don’t list any of that stuff. Unless you verify that with the federal government in your state, Consumer Affairs Office. Most of that stuff is just going to be junk. And they’re going to go ahead and use this crisis to steal your information. So be careful on that. Lastly, We’re going to so here’s some things you can do during this time if you’re off of work to make some income and things you could do to you know better yourself during this time. So for the one thing is continue to if you’re listing on eBay poshmark or the other sites continue to source from your pile since all the things all the stores are close, I got a big pile on my my garage from a pallet I bought last year, I still got to go through all that a bunch of stuff in my closet. Definitely your closets. If you have family that’s home and you can get their stuff. Go right ahead. If not, if you can’t go over there and see them just you know, go through your stuff, it’s a good time to clean and pare down and figure out exactly what we actually need and what we could sell what we can donate when all this is over because there’s gonna be a lot of people need this stuff after this. So there might be a chance to you know, maybe I can’t sell that item but I want to donate it so definitely get your donate files going as well. Turn a skill into an income. So this is great if you’re like an English teacher. Your home, maybe you want to try your hand at editing something like somebody who has a manuscript or an essay they’re writing to get into college or one of those deals. Definitely check that out. For some editing, working on promotion, like if you’re trying to build a brand, you’re trying to build your eBay store, let’s say work on promoting yourself, work on building your Instagram following work on building your Facebook friends, your Facebook store, maybe getting some stuff out there like that, and working on working on building your brand and building yourself and then doing that for others. Like if you’re really good at it, you’re really good at marketing and you just haven’t had the time because you’re working a nine to five dead end kind of job. And you really want to get track of it. Man, go ahead and, you know, promote yourself to that. You can do it for you know, pennies, but even pretty cheap. Just put yourself out there, get some extra income and build yourself up. You may even decide that he liked this kind of job that he got laid off from and I’m doing this full time and then of course Look to see who’s hiring. Amazon’s hiring a ton of people. Walmart’s hiring a ton of people, I think it was 150,000 people between them, or 150,000 people each. I want to say each between Walmart and Amazon, your local grocery stores hiring in my area of Safeway, say please hire 2000 people. Last I checked. I talked to a woman today who works at Safeway. She said they’re hiring 200 people to do delivery driving for their Safeway delivery. Now, these are all short term temporary jobs. That may end when all this ends, but it’s a job right now that people might need. So definitely go ahead and look for those things. Other things are like Target target setting the app and the chat here. food delivery driver. So if you’re already doing things like shift or instacart, or buy edible, or you’re doing things like Uber Eats or doordash they’re constantly hiring, you can definitely get out there and do that without there is a little bit of a delay. getting on board with them, because they do do a background check. And sometimes they do some
joey ruffalo 21:07
vehicle checks and stuff like that. And honestly, if you have never done anything like that before, especially the in store food shopping Ah, this time is really difficult to do it in because it’s a lot of stress for us season people so I can imagine how it’d be for a newbie who has no idea what’s going on. But also just check, you know, check those things. Check Amazon again in your area for amazon flex, for packages and for the whole foods and Amazon Fresh and prime now deliveries, prime now deliveries are backlogged until April 30, April 21. So instead of it being one or two days, it’s going to be there about a month right now, because they’re only shipping essentials, but just check there. There might be something in your area. And then there’s opportunities for people through things like next door get on your next door app if you have one and look for Things like personal shopper for somebody that doesn’t want to leave their house. Separately, maybe lawn or yard maintenance. Depending on where you are in the United States, there might be a need for shoveling snow or taking care of weeds for somebody you’re feeling well, they may not they may be elderly or not want to go out of the house. You got an opportunity to go over there. And you could do a lot of contactless payment nowadays through things like Venmo and Zell and PayPal, of course, and so you don’t have to worry about even seeing people. So those are opportunities that are there for people to get in and get out. And yeah, so that’s that. Let me get back off of here. All right. So that is a quick little thing there on what you can do during this time. The main takeaway from this is, if you’re home, and you are laid off, or you know, you’re gonna be like, we had some Buddy, we know who is a teacher at a private school. And they are. They’re closer for the rest of the year. And so she doesn’t have a job the rest of the year and there’s no work, there’s no pay. So that is, you know, upon possibilities, so people are just laid off a little bit. And you know, they’re gonna get their paycheck for a while. But this is an opportunity for you to make a little bit extra money during that timeframe. Start hoarding that money a little bit, stockpile it aside through the crisis, and then wherever you’re at, you could definitely put it in and go from there. Because of some questions in the chat, let’s see here. We had a few of top here. Comments, comments, comments? Linda had asked. I think it was answered. What does it mean to sell that that off? So basically what that is, is if the original creditor hasn’t received pay in about six months or so, they will go ahead and sell that off to a third party collection agency. Third Party collection agency is sometimes disguised as a law firm. Sometimes they sound like a law firm. Sometimes there are a law firm, but they buy debt in bulk. So they’ll buy it on pennies on the dollar, they buy a portfolio of debt, you know, just buy a book for so basically just buy a booklet a debt. It’s got your name in there and your mount and then they just start calling it and they say, Hey, you know, you owe us $10,000. When you get the pay, and they keep going on. They’ll say, oh, we’ll settle for the settle for $8,000 he pays now we’ll get you on payments or whatever. They probably bought that debt if it’s 10,000. They probably bought it for 1000. cumulatively when you add in all the debt they bought together. So there’s plenty of room in there for negotiation. I would negotiate down to like maybe 10 or 20 cents on the dollar. That’s all they really need. That’s a separate Something above that. So those are the third party collectors. So if you hadn’t paid your original creditor, so if you had a debt with the American Express and you didn’t pay it for six months, then they would sell it off to a third party and then that’s when they would start harassing you and sending you letters and possibly taking you to court suing you at that point, and then you have to go from there. The question from the chat here is Paul Thompson. Paul said, What is the one for personal shopper? So personal shopper, I just threw that in there. There are things like shipped and instacart there’s another
joey ruffalo 25:35
there’s a couple other grocery delivery services that are out there. You go shopping deliver for people, I was more referring to getting on like a site called next door or your local Craigslist and advertising yourself as a personal shopper for somebody outside of those, you know, maybe there’s an elderly person, you just say, Hey, I’m going to Safeway or I’m going to CVS on Tuesday. Who needs what and you just collect the People feed people’s orders and drop them off. There’s opportunities to be entrepreneurial during this time. There are a lot of volunteer organizations that are setting stuff up like that as well, by definitely for shift and instacart. Those are the nationwide grocery shopping delivery services where you shop and deliver for the customers. So check those out, as well. Marissa, there’s a pizza place in Portland, giving a roll of toilet paper with each delivery order last week. That’s great. I don’t know what that says about their pizza. Does it go through too fast or what? But that’s awesome. Those things are hard to come by down here in the Bay Area, then toilet paper, hand sanitizer. Anything in a bacteria has just been non existent. They tell me they get it in the morning at like 8am. But by the time you get there, there’s a line out the door. It’s gone. So I’ve not seen much of anything. I was lucky enough to order a few off of Amazon recently and get it delivered. So I’m lucky there. And our local Target has just started getting some hand sanitizer and stock but the the real small bottles and they’re one per person so gotta kind of make do with you got nowadays but yeah so any other questions feel free to pop them in the chat real quick
joey ruffalo 27:25
ah Linda said I’m guessing this would be a good time to discuss creditors and how to handle them as there’s a lot of people that may be in that situation after our current crisis over yes we can discuss creditors so when the environment is not like what it is right now, which is so uncertain and toxic and away. creditors are very nasty sets right there, harass They scare you. They use scare tactics. I’ve been through it all when I went through our problems and issues, dealing with them all in the sun, right? So the best way to deal with creditors is to not say not deal with them. How can you not deal with them? Well, like the one of the techniques you can use is to write them a letter or send them a letter, tell them over the phone that you’re doing it, the only one to be communicating writing, they will stop calling you. They will only communicate with you in writing, they will send you a letter, I probably stopped sending you letters all together, the only time they’ll send you something is if they’re going to run out and sue you. And then you have to obviously respond to a lawsuit and stuff like that. It’s not good to necessarily ignore your creditors. You do want to try to work with them in a sense, but you want to be reasonable. You want to tell them what you can pay when you can pay and make doing that. So if you have a $10,000 debt that you can tell them hey, look, I could settle this for 3000 Right now, and they say, Okay, then sell it for 3000 right now don’t say okay, and then not sell them the money or only southern half or a little better, right? They’re gonna get angry, they’re not gonna trust you, and they’re gonna go after you a little bit further. They might even just send that send you to the court after that. Like 8am to 9pm is the timeframe they can call if they call before 8pm or call after 9pm. It’s a violation of the FDCPA violations, if you sue them and win in court are worth up to $1,000 per violation. Sorry for for pursuit sorry. So you can have several violations in one suit but still only get up to $1,000 to you. Now, there are a lot of companies out there, lawyers that’ll pamphlet for you. They’ll sue them for a lot more. They’ll give you the thousand and they’ll take the rest of their fees. It’s great to work with them because They take all the calls over. All that stuff, you don’t have to worry about anything. It’s great stuff that I do, too. I don’t, I don’t actually. I’m not a lawyer, but I do call on your behalf to the creditors to work out deals, negotiations, figure out where they’re at. And also let them know where you are in the process. You may be like, hey, you’re number five on my credit or payback list. I’m going to get to you in about six months or so. Is that okay? Otherwise, you’re not going to get paid anything if you try to do something with beat right now. And they may say, Okay, well, we’ll touch back and we’ll touch base in six months. None of that had that. And then as you’re working your plan, and your debt reduction plan when you get there six months, boom, there you are. So that is the they say is that ever everybody’s talking in the chat about alcohol, isopropyl alcohol? Yeah, that’s been gone. That’s been gone. They started limiting actually in our local targets. What you can buy so you can only buy two milks one egg, that one specific one egg but one carton eggs and the two milks are it’s a mixed match. So if you want us creamer and a milk, that’s it that should too. If you want, you know, I said you want whipping cream and you want creamer and I’m not going to get to the haven’t limited meat yet, but that’s always out anyway. dry goods they limit it to eight per the set target. There’s a couple of things one, toilet paper, one hand sanitizer, one this one that and then go from there.
joey ruffalo 31:47
Some of the other stores are actually just limited to one of everything and be careful. Another thing to be careful of when you’re buying in bulk right now are trying to buy in bulk. There are some people who actually go out during this time stores still do retail arbitrage, which is great. It’s a great way to you know, keep your processes going. But be careful because there’s a lot of stores that during this time are not going to accept returns are people that do retail arbitrage, they buy it, they list it, they try to sell it in that 30 or 60 day return period, if they don’t think you return it. I’ve seen people do that before. If that’s one of the things you do, just be careful a lot of stores or as is you’re not gonna be able to return anything you’re buying. So be careful out there with that stuff. Joey mentioned how to pay and not pay the lump sums. Sure. So getting back to the creditors when you’re paying your creditor off, let’s say we negotiated that down to $3,000. It’s important to not give them at any point in time, electronic access to your accounts. your checking account your savings got no matter what do not give them electronic access to track the check to do EFT or whatever it is. They are notorious for taking out more than what you agreed upon. That’s thinking they’re notorious for taking out more than what you agreed upon. Yes, this happened on multiple occasions. That’s happened to me once or twice before. We had an account at a bank. We actually had a credit card with a bank, I think it was like Citibank, I’ll just say Citibank, and we open up a checking account at Citibank to put money in Citibank. Well come to find out. Citibank is allowed to take out money from your savings account or checking account anytime they want to cover back debt. So we woke up one morning and our account had $2 in it because Citibank had taken a lump sum out of our bank accounts pay off or put towards a bad Citibank loan. credit card. So careful with that. Don’t give them electronic access that was technically give them electronic access access because they were in the same family there, you know, same business. Yep, get everything in writing. That is important. Everything must be in writing before you proceed. I’ve dealt with a couple clients who have agreed to something over the phone. And when and they agreed to it in writing. And when the letter comes in the mail, it’s different. So yeah, that also happens. The client agreed to $3,000. And the letter came in the mail saying that the agreement was 5500. So yeah, so that’s why we have you know, you have to call and record the conversations if you can, of course with permission that what state you’re in letting them know you’re recording. So you have that information there. It was, it’s crazy dealing with these people. So yeah. So you do that you get in writing, and then you give them a cashier’s check. You can give them a cashier’s check for the bank, or a money order, depending on the amount but get a cashier’s check. You could do it from your bank, because it’s going to come from the bank’s checking account. It’s not going to come from your account, the ETF numbers on the bottom are for the bank. But you could also take that if you have counseled multiple banks, depending on if your creditor is you know your bank or not, you may want to do that, go to a different bank and get it or have a sudden the chat here, different accounts for business and personal. Yeah, you could do that as well. If you feel compelled to give them a card and get it over with, you could always give them a prepaid card, put the money on a prepaid card, give them that account number to charge. And that’s that, but you don’t want to get electronic access. You want everything in writing. And when you get the letter in the mail that says thank you for paying us in full keep that letter For the rest of your life, because you will get you will get calls. Yep, you will get calls asking about that. Did you settled and paid in full? Yeah. ask you to collect on money you’ve already paid. So as long as you show that to them, then you are good to go. Third thing is it’s like statute of limitations. So statutes of limitations you’ll hear that in a lot of lawsuit cases and legal cases statue limitations for creditors vary state by state in California, I believe is four years and some other states that seven some other states it’s one, what that means is the date of the last payment.
joey ruffalo 36:49
So is March 23 2020. If I made my last payment on March 22 2016, and they try to sue me Today, I am statute of limitations out. Do I still owe the money? Yes. Can they sue me for it? Yes. Will they win? If I don’t answer the lawsuit? Yes. If I answer the lawsuit saying, I passed the statue limitations, and I can prove that then they have to just move on with their day. Anytime you settle a debt off, and there’s a balance owed, so let’s say go back to the example if you owe $10,000, you settle for 3000. There’s a $7,000 balance. Now what happens to that? Well, company you pay writes it off as a loss on their taxes, and they send you a 1099 for $7,000. That’s $7,000 then becomes part of your income for the year, and you owe taxes on it. So yeah, that was That was fun. A couple years, we were going through this stuff where we were able to negotiate and settle down a few of those bigger debts that gets behind us. And right at the first of the year, here’s a 1099. for, you know, $25,000, you have to add to your income pay 20% tax on great. Because what’ll happen is, if you have a lot of these, this is the scary part as well. If you have a lot of these, it’ll push you to a higher tax bracket. And then you’ll have more taxes on all your regular stuff, too. So if you’re in a 15% tax bracket, and you’re making whatever you’re making, and you get a bunch of these canceled that’s to come in in one year, because you’ve been really working hard to either settle them off or whatever you’re doing. Oh, now you’re in a higher tax bracket. Everything else is taxed at a higher rate. Yeah, that’d be that does think, but they said didn’t have to pay the whole 10 but end up paying three to the creditor and no Let’s say 7,020%, you know, hundred 1400 back to the, to the government. So you end up settling that that when you think about it for about 44 or 4500, I suppose to 10,000. So, you still come out ahead in the end, but so, these are things to think about when you are going down this path if you decide to go down this path after all this happens, it’s good to have a lot of money stuck the side so you can settle off with these people, if you just decided to stop paying them right now because you’re out of a job. But it’s important to communicate with your original creditors during this time. We’ll back to that slideshows, that slideshow slide. If you have a MasterCard, Discover American Express, if you’re still dealing with credit cards, it’s important to get in touch with them and get ahold of them to get you know, to figure out the plan that they’re going to implement for their customers. For people that aren’t paying. They may not send you the collections right away. They may waive all the fees and back interest or we don’t Exactly, no. But when this all ends, if you have a stockpile of money saved up, you can just go right back into where you’re going phone question in the chat says how do people get out of paying taxes on that leftover, canceled that? Yeah, you really don’t get out of it. There are a few. There are a few loopholes that are actually there for people who are financially unable to make some fantastical hardship rules that are there that allow you to sort of avoid paying those. But unfortunately, they’re really hard to qualify for. But, you know, if you if you’re in that situation, you know, definitely let me know and we’ll look at it and see, but yeah, it’s really tough to get out of those. Let’s see who else here. How much does it hurt your credit score? Well, by the time you go to collection, and they start calling you, your credit score is shot tomorrow. Crap anyway, because you didn’t pay for six months and we got subtle off. So doesn’t really hurt that really hurt that much, because your credits already crap, right? So it’s not gonna get your crap, more crap is still crap, I wouldn’t really worry too much about the credit score because your goal at this point or at least the goal that for my clients that I deal with is a zero based credit score. So you could still do everything without credit, I haven’t had a credit card and 13 years,
joey ruffalo 41:35
I still could do everything that I do with my debit card with my paypal card, I run everything as credit, so goes through the Visa MasterCard system, rather than going through my bank system with debit. So you get those extra protections that your Visa MasterCard would normally have. But you’re running it through your bank. So my bank, my credit line is whatever’s in my checking account. So that’s sort of the protection that I have there. And if you want to if you’re Looking like Oh, how am I supposed to buy a house without zero credit? Well, they do manual underwriting and a lot of places it’s not a skill or technique that’s normally done anymore but there are a lot of companies that still do that so you can show them your bills and your bank statements and your taxes and everything else to know manually underwrite you get you set up there with loans and everything for your for your house. I can rent cars, I can go on vacation, I’ve done all that without a credit card. So I don’t really worry about my credit score so much because I don’t think I have one anymore. I mean, there’s a couple things that are still on there that are waiting to drop off but once they’re calm, I critical down zero. And that’s that is that yes, insolvency. That is the word I was looking for. For the for the taxes, you can claim insolvency. With the IRS, there’s a couple forms to fill out to show that you’re unable to pay that maybe you’re strictly on Social Security or something. You don’t have the means to pay that extra in taxes that year or it’s going to affect your So security take on the after tax stuff. So you could file insolvency and that might be a way to sort of avoid tax on that amount. Yeah. All right. Settle one in December and other than January is one way to lighten the tax burden. Yeah, there you go. Because the December one will count for this tax year, the January one for the next year. Churchill mortgage Yeah, Churchill mortgage is a place that does the manual underwriting for the mortgages. So definitely check them out if you’re looking for this time to buy or refinance and you don’t have credit score or you have had credit card years.
joey ruffalo 43:51
Sorry about that. Dry mouth, not Corona just talking too much. So I mean anybody else have any other questions? Hopefully this is stop too boring for everybody and maybe I’m not too boring and I the personality of paint drying sometimes but other than that, I just wanted to jump on here and help people to you know, give them a little sense of like you’re not alone in the situation. And yeah, when that says we’re looking to buy a new home this year, good topic. Yeah, Linda totally. I’m gonna write this down as far as you give me a lot of good topics so far. I’m gonna only plan to do this every so often but it sounds like I’m gonna do this. Something off the cuff on her quite a bit with different topics. And I’m all for that. That’s fine. Sorry. I love it. I love being on here talking to you guys and helping you guys out. Like I said, if you have any more specific questions that you don’t want answered in the chat or you don’t want your your baggage out there is there’s a link below in the description. Set up a call with me. It’s 15 minutes is free. There is no obligation whatsoever. And he just hit me up with any questions would insolvency thanks, Marie. I appreciate that. I appreciate all your support through the years and helping me out here. I think I made you admin Mati can so you’re doing awesome when insolvency help a divorce spouse stuck with huge IRS debt
joey ruffalo 45:36
I think you can hear me typing in the background. So I am going to look real quick here. Because there are some things that I do not know. And if I don’t know I will find the answer for you. Ah, let’s see here. Now Guess in the divorce, you’d have to figure out who is responsible for paying those debts in a divorce decree. So this is the wife’s debt and the wife said in the divorce decree, the husband assumed responsibility for it. To then determine on what’s what we’re able to do here.
joey ruffalo 46:31
See here, my dad is canceled. Yeah, that’s a good question. I will have to get back to you on that one for sure. Because obviously, if it depends, like I said, depends on who is responsible for the debt if it’s if husband wife got divorced is the wife’s debt. And now the wife’s insolvent because of the divorce, she doesn’t know the husband’s income they want to or the husband of the wife’s income they want to, then yeah, then they would be considered insolvent and then if it’s their debt, they should be quiet. qualified but if they’re taking on somebody stet through the divorce decree that maybe some loopholes and stuff you may have to jump through a mine. Exactly. I’m actually sure that, yeah, thank you so much. You could send me a message, either through email, you have my email and stuff. And again, on the little description below, there’s a spot for the anchor app. It says, make sure it’s right here is live a messages anchor.fm slash MDR radio, you can go right on there, leave me a voice message up to about a minute long. And so if you have any more specific information, you can go ahead and leave it there. And we’ll get back to you on a future episode or in the, you know, the mere contact information. I’ll email you back. So other than that, guys, I don’t really have anything else for you right now. But I love talking to you guys. So you have questions. Keep them up, keep them coming. We’ll just hang out for a bit. Yeah, thank you. Thank you, Linda. hit those thumbs up coming here. Wow. So I appreciate you just getting back into the swing of things going solo for a bit. I will have some stuff coming out later on I’ll explain a little bit the concept of the show how what my what my vision is for this money business reselling is three things that I love doing. I love talking about money. I love talking about business. And I love talking about reselling. So I found a way to put them all together and find a way to intertwine them. So not every episode is gonna be strictly on reselling, or money or business, but be on all three together. It might be just on one topic, I’m hoping to have a bunch of different guests on that are specific for those fields. So we might have a guest on for a whole hour or half hour, business person or reseller person, people in the community small business owners everybody just coming in because tips and tricks and techniques that these people bring you apply to everything. So if you if I bring somebody in that’s really great at customer service, that applies to how we run our reselling business, which then, you know, correlates into making more money. So everything kind of pulls together. And those are the three things I love talking about. So I’m gonna try to come on here more regularly do a little bit more on the podcast excited on the audio, so feel free to subscribe there. I’m not on iTunes yet, because I haven’t got an episode out but I am on Spotify. A few other sites right now on my first episode will air I will drop this week. It’ll be like a sort of intro episode. So then you have the places to call and subscribe to it. Listen. And yeah, I’m just excited to want to help people as much as I can. It spread the word around. So thanks for everybody. Thanks, Linda. Thanks, Debbie. Thanks, Jason. Thanks, Liz. Murray. You guys are awesome. Justin. He’s still here. You guys are awesome. Angelica. Thank you so much. Thank you guys for subscribing to it’s pretty cool. I don’t expect to hit the numbers a hit last time on my other page. Hope you get there at some point, but uh that’d be fun. The fun lis ass So I think you’re specifically with your eBay business at the moment. No. I would say listing because I’ve been so busy with other things. That listing has fallen by the wayside for a while. And I’m all right. So my main thing that I’ve been doing besides coaching people is so my wife and I do dog walking and pet setting, and then I do financial coaching. So those are the top two, any kind of hours in between, I fill in with side hustles I’m either doing Uber or Amazon or I’m delivering groceries with shift or something like that. So the last two weeks have been no dog walking because everybody’s home Kwan stay at home so we can’t go anywhere. And basically, the coaching has been here and there but it’s it’s been mostly telling people what I’ve been telling you guys tonight kind of stay the course. Don’t worry about your investments right now stockpile your money. Don’t worry about your creditor so so be dealing with a lot of that. So the ship and the grocery delivery has taken up a lot of time in the last two weeks. That has started to change a little bit because our stores or stores are closing early. So our stores were open till midnight up until last Thursday, and now they’re open till nine o’clock.
joey ruffalo 51:27
So I used to work until that midnight timeframe. Now I’m only working till eight nine o’clock. In fact I have when I’m done here I have a grocery order to go run to after this to help somebody out. But so from nine to midnight I’ve been working on eBay now. I’ve been doing some listings getting some new stuff up. I have a pile of stuff like my desk of things I bought recently. So I actually been listing and then cross listing on poshmark. So yeah, what I’ve been doing for my eBay business is actually working out my business. That’s all I’ve been doing at this point in time. So it actually is translated we had a couple sales we had a sale yesterday on an offer and we had a bonanza sale, full price offer for price order for a couple hats they bought. They bought both that I had in stock. So it’s my second ever Bonanza sale. So you get the email saying you sold something in the item and then on eBay and I’m like what? and sell it on eBay. I don’t see the sale here. Then I got the finance email came in without an answer. Okay, so that’s the other thing, if you haven’t right now. So good, actually good point. If you haven’t right now, it’s a good time to try to diversify your listening exposure. So by diversifying your income, diversifying your assets, diversifying your portfolio, we’ve talked about that later on down the road, diversifying your your your listing, so getting yourself on other platforms, maybe you always want to try on Etsy, maybe always want to try Maybe poshmark scares you. now’s a good time to take a dive and work on it and get in there and try it out. Because you have the time to sort of play with it and see how it goes. I’m on poshmark eBay mainly I have a couple things on Macari a couple things on grilled. A couple things. One thing on Etsy and then our, our Bonanza stores, you know mirrors or eBay stores. We have that out there to be a time to go through look at old listings, old titles, old descriptions, old pictures, rework a few things and some listings. eBay just gave us 50,000 listings for March in April. For most of us check your emails on that good time. They’re ending realists without having to worry. And get through those piles of stuff you have worked on it. Get the things out there. Yeah, let’s let’s list. If it doesn’t, if you can’t list it, it’s not going to sell. It’s not listed right. So we all need to make some money now. So go ahead and do that. And yeah, Joey has an institute. Thanks for Yeah, I definitely have an Instagram. I have to be, I took about a month off from social. So I’m just getting back into the JR, financial coach Instagram page. So definitely check me out on there. The links are below in the description. So if you click on that, yeah, Debbie, grilled grilled is men’s clothing. So it’s kind of like a streetwear higher end kind of men’s clothing site. There’s a woman’s specific site as well, that’s on there. Link off of item board is called but we don’t really sell women’s clothing. So yeah, grilled is on there, too. It’s really stiff these sites are so let me digress for a second. All these sites are really easy to list on eBay. eBay asked for a lot of information. The other sites don’t ask for a lot of information to get started. So if you’re hesitant about the other sites, don’t necessarily worry about oh my god, I gotta provide us information. They’re very simple. They’re like three or four, maybe five quickly. little steps a couple pictures in both you’re up there Liz says that a lot options in Australia so eBay Facebook is really good for me. Yeah, you know I think there’s also the pop down there and around there in Australia I’m not exactly sure list but I haven’t tried out that one is a lot of the people in the reseller community have tried that site but I haven’t tried that. And yeah, eBay Facebook down there seem to be pretty King. So just keep just keep just keep working. Yeah, heroin. That’s it not heroin, heroin, but heroin like female hero. It’s the woman’s side of Grail. Yep, that’s it. I can remember that. Angela, I’m concentrating on organizing. So for the next few days didn’t listen. Yeah, that’s perfect. If you can get your organization down. It’s a great time to get organized. So when we get out of this, you have your processes in place for success going forward. It’s a great time. What I like to say during this time is Use your time don’t have the time you you feel free to use that wherever you go, you use the time, don’t have the time use you. We have this unique opportunity during this two weeks, three weeks to really focus on ourselves better ourselves. There’s things out there like learning to organize your stuff better getting your processes in place, there’s sites that are giving free things away so if you want to better yourself,
joey ruffalo 56:27
I’m gonna throw up here I’m gonna just check real quick here. I think it’s great courses calm right. It’s a great courses calm, you can go on there, they get there, they have a free trial right now. I think it’s a 30 day free trial. Once I was saying learn all like, ancient history and economics and language and literature and, you know, advance investments and, you know, all these crazy like, topics that are there. So you have time to really just better yourself at this point. So definitely definitely definitely take advantage of of it. Christmas is around the corner in e commerce time. Yeah Debbie. He Yeah. Is here before we know it 30 March, two days will be March 25, which means nine months till Christmas. First quarters almost done. Let’s should people still try to get the taxes and then by July 15, or take advantage of the extension? July 15 is the new deadline. What I would suggest is let me let me double check on that, Linda because I don’t want to speak out of turn by saying go for July. I think July is the new date they’re giving you they’re not going to penalize you. But however, they do have some things where they’re allowing you to extend into filing In October, there was a first file extension the file from April to October. But you still had to pay the money in April. We had to file the paperwork in October. So what I’m going to check out real quick, is is that the same thing for July? Are they still expecting to send the money in in April? Or are you allowed to send everything in in July? So let me just get back to you in about 10 seconds and we’ll do this live. Why 2020 the filing deadline from the IRS they moved the date from April 15 to July 15. Without penalties and interest regardless of what’s owed. Take advantage of July if you want to get it done, send it in, you want to wait till July to July. So you go they’re not gonna charge you penalties or interest on any of that stuff until after July. So if you’re if you’re in crisis mode, and you need that extra money Then wait to July
joey ruffalo 59:10
Yeah, exactly. If you if you think you’re going to get a return you can use that extra money then then go ahead and file soon so you get the money. go from there.
joey ruffalo 59:30
Let’s see real quick here tronic 21 days.
joey ruffalo 59:41
Yeah, I just deferred everything to July from April. So, of course things are changing day by day. So yeah, it’s like you’re totally right if you are going to get some money back sooner rather than Later because we don’t know what’s going on. And like I said things are changing day by day with stuff and who’s going to so if you can use that money now to stockpile I would definitely go ahead and take it now. Just to get it one just get on with your not going to remember in July right and with the tax day I got to do it now. Just Just get a done and be done with them. But if you owe money to the IRS, then you may want to wait till July because then you’ll be able to like save without money between now and then. If you’re getting a return Yep. Grace says I’m working on my organization checking items I thought was listed in this thing if I felt the cracks Yeah. Yeah, there’s so many things I thought I should add for a long time and they’re in the pile of Yes, my listed stuff. And then I’m like going through stuff that sold pulse. found my Why this didn’t sell yet? Come to find out it wasn’t listed. And speaking of cracks, Grace, it’s actually a really good time to look at anything breakable. Make sure there’s no cracks in it that you didn’t have it occurred since then. And you might want to, if they have, you might want to disclose whether Can we meet with the with the cat face to face or face to face, you might want to do like a virtual call. A lot of them are setting up virtual calls where you can follow paperwork with them and then just meet with them on the computer like this. Hi. I used TurboTax big secret. I used TurboTax do the taxes myself. hate it, but yes. That’s what I did. So I meet with my accountant, which is me. I do my taxes that I’m my worst client I’m the guy that brings my receipts in on a shoe box basically I have to sort everything but other than that, it’s been fun. See here? Yeah, so that’s pretty much it. I’m going to go ahead and probably jump off soon I gotta go do a shop for some people soon. Thank you all for stopping by and showing up. I’m gonna try to make this more of a regular thing. So feel free, make sure you subscribe to the channel and hit the little bell there to make sure you guys get notified when we go live. Check out the Instagram page I will announce the launch of the podcast on the different networks should be by over the week I showed the first episode up and ready to go. And if you haven’t already, I suggest if you’re into Facebook or on Facebook, Debt Free Reseller Community on Facebook is new Facebook group and we will talk money in there we’ll talk whatever any questions you might have off air you want to answer in there any question you want me to bring to the show I will address either they’re here both places no problem. Other than that, thank you guys so much is a lot of fun. little nervous at the beginning, going solo again. But you guys were really awesome in the chat. I really appreciate you guys being there. And thank you again and till next time. Stay well everybody. Thanks Marie. Thanks, Debbie. Thanks Christy and thanks Linda, Thanks, Jason. Thanks, TCB rough till next time bye
Transcribed by https://otter.ai