Brunch & Budget

b&b238 The Stimmy Hits Back + Prop 22 + PPP Loans

January 25, 2021 Brunch & Budget
Brunch & Budget
b&b238 The Stimmy Hits Back + Prop 22 + PPP Loans
Show Notes Transcript
Dyalekt:

Hey yo, when your while it feels like it's constantly pushing a boulder up the hill, and you're looking over your shoulder because creditors have no chill, and they're lying to you on social media. Just look at the sub the bill come and learn to love it with friends and budget. This is the finance bill. Welcome to punch in budget, the show about personal finance and racial economic inclusion with your host, Pamela Palin, a certified financial planner and accredited financial counselor going to take the pipe out of your budget. I'm your sound provider dialect. And here's your host, I'm looking palette.

Unknown:

Hey, everybody, Happy

Dyalekt:

New Year, let you know bunch of budget as part of the rates. Oh, yeah, but let him know, let

Unknown:

him know. Happy New Year and everything like that.

Dyalekt:

We're back. It's a new season.

Pamela Capalad, CFP, AFC:

It's a new season.

Dyalekt:

Honestly, we talk a little bit of a break, we stopped for a little bit. And now we're back doing things and do things a little bit differently. Not on Instagram Live. And we're doing this on stream yard. And this is going to be sent out not only to our podcast part of the Facebook Podcast Network, but we'll also be going to spawn Deluxe, check out spondylus. tv, it's on spawn deluxe.org. It's a really great program that they put together financial education based programming with video contests. We're pretty proud to be a part of that.

Pamela Capalad, CFP, AFC:

Yeah, we're super excited. It's also going to be on Facebook, on YouTube. We'll do it around two ish every Sunday or so.

Dyalekt:

Yeah, we're gonna see how we go. This is all an experiment, we'll be continuing to grow and change. As always throw any comments, questions, ideas, thoughts, fears in the chat challenges and things like that. And if you want to holler at us on the podcast app, you know, you can leave a rating five stars then give us a one star thing? Because either way?

Pamela Capalad, CFP, AFC:

Yes, exactly. Leave some comments. Alright, everybody. So we're going to talk about a couple of things that are on people's mind. Number one, is that stimulus package.

Dyalekt:

Yeah. So the students package came,

Pamela Capalad, CFP, AFC:

it came out, you may have already gotten your check. Who knows? Right? Well, because the stimulus package is more than just a

Dyalekt:

check, right?

Pamela Capalad, CFP, AFC:

Yeah, it's a whole bunch of other stuff. So we'll be talking about employment, we'll be talking about the seamless checks. We talked about PPP loans, we'll be talking about the idea. We'll be talking about a whole bunch of like tax deductions that got extended and things like that.

Dyalekt:

We had a conversation about this on it live with everyday people, and you want to check out some of the ins and outs about PPP. We talked a little bit about that there. But we're gonna talk about it more here.

Pamela Capalad, CFP, AFC:

Yes. And the other thing we're gonna talk about, and we're gonna start with is a huge, huge, huge thing that got passed in California, prop 22. If you haven't heard of it, maybe you don't live in California, if you have heard of that you probably live in California because it was horrible. It was a terrible thing to be passed. It was terrible for gig economy workers. It

Dyalekt:

was terrible for consumers. And they named four or five different grocery stores that fired a huge swath of their workers that are doing driving.

Pamela Capalad, CFP, AFC:

ons pavilions and Albertsons announced they'd be firing all of their full time benefits receiving delivery staff.

Dyalekt:

I'm not a West Coast guy. Most of those places are not familiar to me. I know bonds with the other ones as a government. Oh, those guys. Yeah,

Pamela Capalad, CFP, AFC:

Albertsons, I know Albertsons anyway. So that's, we're gonna be talking about today, please leave any questions you have in the comments. We will answer them as we go. Also, like,

Dyalekt:

as always, we while we have some expertise, we're not experts. If you know, some facts and figures or some really misunderstood things, some myths that you want to unpack, please feel free to

Unknown:

let us know, let

Dyalekt:

us know because we got the good word, we want to spread it around.

Pamela Capalad, CFP, AFC:

So before we really dive in, I want to start with some vocab,

Dyalekt:

vocab words. Today, what's what's the vocab word for today.

Pamela Capalad, CFP, AFC:

So the vocab word for today is payroll tax, payroll tax. Yeah, it's been floating around lately. In the last stimulus,

Dyalekt:

the the thing that happened

Pamela Capalad, CFP, AFC:

wasn't a stimulus. It was an executive order,

Dyalekt:

right? Like party that was happy.

Pamela Capalad, CFP, AFC:

Yeah, around the stuff that people are trying to spring, right? Yes, in the spring, and then Donald Trump passed it actually in the fall through an executive order, he passed it, whatever you want to call it. Anyway, payroll tax, the way that it works is you as an employee, or as an independent contractor responsible for payroll tax. So the payroll tax is made up of one Social Security tax and to Medicare tax, Social Security tax is 12.4% of your income up to $140,000. So that's one to keep in mind. Social Security tax basically means that you do not get charged or security tax after you make more than $140,000. The other thing is Medicare tax, Medicare tax is 2.9% of your income. So the total combined on these payroll taxes is 15.3%. That's an important number to remember, if you're a gig worker, or if you're an independent contractor,

Dyalekt:

15% of

Pamela Capalad, CFP, AFC:

3% of your total income is made up of Social Security and Medicare tax. That's payroll tax. Now, the reason why it's called payroll tax, it's also called FICA tax. Have you heard of that which stands for Federal Insurance Contributions Act. The reason why it's called payroll tax is because traditionally when you are hired by an employee and your W two employee, Employers are required to pay half the tax so they pay seven points. 5% of your taxes on the employer pays the other half. Right? Right. Right. So that's great. That's really expensive for the employer and a really good deal for the employee. It's one of the benefits of being an employee.

Dyalekt:

Yeah, I know, we've done before the calculation of when you're looking for a job and a base salary. When you look at these benefits, yeah, actually add some money to that,

Pamela Capalad, CFP, AFC:

yeah, 7.6% in taxes, that's a huge amount, right. And so when you're an independent contractor, when you're a good worker, when you work for Uber, Lyft, doordash, any of those folks, you're paying the full 15.3% of payroll taxes,

Dyalekt:

and they don't have to pay their don't have

Pamela Capalad, CFP, AFC:

to pay it at all, they push the cost on to you because you're an independent contractor. So you're not employed by any of these folks, you are self employed. Now payroll tax is called self employment tax and you pay 15.3%. It's the same taxes, it's Social Security and Medicare,

Dyalekt:

but you pay them different talk about a struggler expertise. I want to ask you a question about this, because people often talk now about well, you know, if we raise the minimum wage, that it's gonna cost people a lot more. And it sounds like on the employer side, right? Well, it's gonna be tough, right? And like, small businesses are gonna have trouble hiring people. And on the employer side, it seems like it's already a lot. And I know that a lot of people yeah, and payroll tax. So like, if Uber and Lyft had to pay these payroll taxes, would that mean that they just can't hire as many people and it would ruin their business? Is that what the deal is with that? Well,

Pamela Capalad, CFP, AFC:

I don't know if it ruin their business. Right. So maybe they may not be able to hire as many people but I mean, as it stands now, Uber is losing $1.9 billion a quarter. They're not making any money anyway.

Dyalekt:

Quarter. $2 billion, a quarter 109 point oh, nine.

Pamela Capalad, CFP, AFC:

Yeah, they're losing a quarter in 2019. They were a net negative $8.15 billion.

Dyalekt:

So that was 2 billion a quarter

Pamela Capalad, CFP, AFC:

with their drivers as independent contractors. So their business isn't solvent right now. losing money as it is. Yeah. So they were like, Oh, no, no, no, no, no, no, we can't pay our workers as employees. Here's what happened, though. The reason why Uber can do this is because they only pay you for when you're actively engaged, they call the engaged hours, right? So engaged hours mean that you are actually you have a passenger in your car, or you're driving to the location to pick up the passenger, right. So all of that time that you spend on the app, but waiting to actually get a ride or whatever it is, or waiting to get a delivery, you're not paid for. If you were an employee, you'd be required to pay for those hours, and you're waiting, because technically you're on the clock.

Dyalekt:

Yeah, you're waiting to work as you go into the office, and then you're not getting paid for like your bathroom breaks and your coffee breaks, or even when you're checking your email to find out what that is, none of that is paid out.

Pamela Capalad, CFP, AFC:

None of that is paid hours. It's only like, literally when you hit the app, and you're on your way to arrive, or when you're on the ride itself. And I know

Dyalekt:

some companies that would love to be able to do that.

Pamela Capalad, CFP, AFC:

Right. Right. And that is, you know, that is one of the downsides of being an independent contractor is you only get paid for the hours you work. This is why independent contractors need to charge more for their hours, because you're not getting paid for the invoicing, the marketing, the waiting around all of those hours that you're not working, you're not getting paid for as an independent contractor. And Uber and Lyft have taken that it's like they took the clocking in and clocking out to a whole other level. Right, right, right. It's like, Oh, you only get paid when you're engaged. It's like quantum

Dyalekt:

clocking. Now, because it's not just a time thing. It's like every little bit of whether you're doing the work, and it's like not the thing that they want to count as work,

Pamela Capalad, CFP, AFC:

then they don't have to they don't have Yeah, cuz it doesn't make sense that even though you're on the app, and you're available to work, why aren't you getting paid? Because you're clearly not gonna do anything else while you're waiting for a ride? Right? That's the thing of it. There's

Dyalekt:

this like implied exclusivity, it's not an actual contractual exclusivity. Technically, you could, you know, have a job as a juggler in between something like in the minutes, but you really can't, you can't

Pamela Capalad, CFP, AFC:

practically This is why when you are an employee, you have the benefit of that downtime, right and getting paid for that. Well, that's

Dyalekt:

what the contract really is. It's me saying, Hey, I'm gonna pay for a you're gonna pay for my time. And I'm gonna definitely be here to do work for

Pamela Capalad, CFP, AFC:

like, think about it. If you work in a store, and you're a clerk, right? And you only get paid when someone goes up to the cash register and buy something and not get paid for waiting for someone to come into the store. It's not your responsibility to get people into the store, it's your responsibility to wait until someone needs to buy something. So if you were a clerk, and you were only paid when you were handling the cash register, right, that's the same thing that Uber is doing and Lyft is doing with these drivers. I think boats get it now. Yeah, that makes sense. So anyway, prop 22 was a direct response to 85. If you're not familiar with 85, in California 85. The goal was to more strictly define who was an independent contractor and who was an employee, right. And the intention for a B five was actually to target companies like Uber Lyft doordash gig economy workers where the workers could actually be classified as employees. So Uber and Lyft threatened to leave 185 Pass and what ended up happening with 85 was that a whole swath of other small businesses and most small other independent contractors totally got

Dyalekt:

screwed. Yeah, the bars were having problems because they couldn't hire a guitarist to play in the bars, contracts. They have to put them on paper.

Pamela Capalad, CFP, AFC:

Yeah, if you wanted to hire a virtual assistant, for instance, for a few hours a week, you had to take them as an employee instead. And if you're a solo entrepreneur, you just need some help a few hours a week, you're not going to do that.

Dyalekt:

No, I just talked about a guitarist playing a bargain and a virtual assistant and that and everything in between. That is a contract gig has been screwed over. Yeah,

Pamela Capalad, CFP, AFC:

exactly. Because they were trying to get Uber and Lyft to classify their independent contractors and employees. Prop 22 was in direct response to that and basically negated all of it prop 22 exempts all of these delivery and rideshare services from 85 completely. So the whole point of 85 is now gone. Because according to past

Dyalekt:

quote, well, just for these guys, though, right? The small spots are still screwed over. Right? Yeah.

Pamela Capalad, CFP, AFC:

Yeah. You know, well, because yeah, they're not exempt prop 22 didn't exempt them. How can you do didn't overturn a B five, it was an exception to a b five, the small exception, but just so happens

Dyalekt:

to only benefit really huge company.

Pamela Capalad, CFP, AFC:

Yep. No, I think we're lifted doordash and post mates and instacart spent over $218 million to get a gas on top 22. Okay, so this lift ad is the reason it was shared around all the drivers. I'm sure that Uber and instacart, they basically got a bunch of drivers to sign a petition saying, hey, I want you to pass. And here's why watch this app, it's wild started as a little extra

Unknown:

open and available to all drivers independence.

Pamela Capalad, CFP, AFC:

More owe more than healthcare earnings. Wow. This sounds like that means here, employees of Uber and Lyft. Drivers are

Unknown:

up to 90% of athletes driving jobs could disappear.

Pamela Capalad, CFP, AFC:

I want to see how flat wages and limits on when and where they can drive

Dyalekt:

wages rather than standard.

Pamela Capalad, CFP, AFC:

four to one drivers. Create a better path allow independence protections against harassment need disability benefits.

Dyalekt:

So what they're saying health care, protection from harassment,

Pamela Capalad, CFP, AFC:

injury protection insurance, you're gonna get a minimum wage, minimum wage, guaranteed minimum wage right there, basically, you'd have to pay a certain amount. So let's talk about what prop 22 includes. Yeah. So

Dyalekt:

what's the what's the reality of that? Yeah, because that also had a really nice bit of feedback.

Pamela Capalad, CFP, AFC:

The reality of that is that prop 22, as a compromise to keeping them as independent contractors, Part 22 also is requiring Uber Lyft, instacart, for any, like a delivery or rideshare service to also provide benefits to their workers to their independent contractors, the first benefit is a guaranteed minimum wage. Now what that means is they have to pay 120% of the California minimum wage, which works out to maybe about $21 an hour, right? And they only have to pay them for these engaged hours. So anytime they're driving a passenger or heading to pick up a passenger, they get paid a minimum of $21 an hour. Right? That sounds kind of good, right? I mean, more than 15 people are talking about

Unknown:

the Right, right, exactly.

Pamela Capalad, CFP, AFC:

Except, again, drivers are not getting paid for waiting for a passenger to come. They're not getting paid for just having the app on. They're only getting paid for the hours they work. So you could have the app on for four hours and only get one ride for whatever reason. And that's it you only get paid for the one ride even though you technically were working or on the clock, Uber and Lyft for four hours. Okay, okay. But like, we're getting benefits and stuff, though. So that kind of count. also getting a health care reimbursement of up to $400 max a month if they have health insurance through California covered plan. So the tricky part about this is that this like up to 400 ollars a month, I believe it's based on like how many family emergency put on insurance. One is, the average cost of insurance for a family in California is $1,041 a month.

Dyalekt:

So they're paying about 40%.

Pamela Capalad, CFP, AFC:

They're paying about 40% of it, so it's still costing them a lot. The other tricky part about this though, is when you're an employee and you have to pay a health care premium payment, it's all pre tax dollars. Now this extra $400 that all these companies are giving you which sounds so great Council's income, you have to pay taxes. And you have to pay the payroll tax that we talked about earlier than 15.3% plus state taxes plus federal taxes that $400 is really like 250 300 going back

Dyalekt:

it up a little bit. A little bit about the pre tax and things like that. I mean, because it does sound cool that they're giving them benefits if they really wanted to give them benefits shameless plug they should give them a vitamin inbox subscription. Yeah, you're saying, you know, that might be a nice thing for y'all to do. But like when we're talking about like this pre tax benefit versus that, like, you know, what am I looking at in terms of my paycheck? Because I know that it's supposed to come out my check anyway, even if I did have a job with an employer,

Pamela Capalad, CFP, AFC:

right. So this if you were getting $400 reimbursed from healthcare through an employer, it would be $400. And you wouldn't be taxed on it. But right, if you're getting $400 in this situation as a good worker, then that $400 is tacked to that $400, you'll get 15% right off the top for self employment tax is gone. Right. Let's do the math right now.

Dyalekt:

So like, they also say, like, the math right now.

Pamela Capalad, CFP, AFC:

$400, though, so then times point eight, five, because that's $340. Right on screen. $40. And then, let's see. So that your $140, let's add up all the tax. So it's 15.3%. Right? And then let's see your federal tax. Let's do i'm looking up the federal tax brackets right now for 2021. So let's say you make $15,000, you are in the 22% tax bracket. So that's 22% of taxes. 37.3 is where the marginal tax rate though, hold on, it's a little complicated. So 15.3% plus 12%. Plus California, California state tax rate, that California state tax rates, point two 5%. So you're paying 34% of taxes on that. $400. So $400 times.

Dyalekt:

So that's about $139. Right? Yep.

Pamela Capalad, CFP, AFC:

32. Yeah, it's $128 off of it. So it's $272 is what you're actually getting when they give you a $400 reimbursement because they're not covering the self employment tax

Dyalekt:

was a job would often be covering leaving, well.

Pamela Capalad, CFP, AFC:

A job would run a pre tax,

Dyalekt:

and well, it will be pretty tough to worry about any of it and a

Pamela Capalad, CFP, AFC:

job Grimoire. But

Unknown:

yeah, wow.

Pamela Capalad, CFP, AFC:

Yeah, yeah. Yeah. So prop 22. Again, it's like this bait and switch. The other thing is, technically, you're supposed to be getting 30 cents, mileage reimbursement, but only for the engaged hours that you're working, of course. And then the other thing that's happening,

Dyalekt:

just in general, folks who are listening who know how to like, throw graphics up in real time, if you like us doing the math in real time, we should figure out how to do that. Yeah. This is an experiment.

Unknown:

Yeah.

Pamela Capalad, CFP, AFC:

The other thing, though, is you need to at least be working 25 hours a week. And to do that they did the math, and it would take about 40 hours of actually like being on the app to do 25 engaged hours a week to be able to get the health insurance. Um, the other thing is, what else do they get? You mentioned healthcare reimbursement. They mentioned let's see 25 engaged hours a week they mentioned Oh, the injury protection. Oh, yeah. So the injury protection insurance is another benefit. And that's basically like a version of workers comp. So if you get injured on the job while you're driving, you get Injury Protection. The thing that workers don't get, though, is we talked about payroll tax, they don't get their payroll tax covered by their employer, their health care benefits are taxable, unlike if you were an employee, they don't get unemployment insurance. They don't get disability insurance, which is different from workers comp, and they don't get to get paid while they're working. While they're actually working. They only get paid for those engaged hours.

Dyalekt:

So these cuts but hundreds of millions of dollars to make sure that they didn't have to spend billions of dollars. Yeah, on their workers.

Pamela Capalad, CFP, AFC:

Yeah, exactly. Exactly. And now what's happening is again, die like mentioned earlier, grocery stores in California fired all of their payroll employees were delivery people, and instead they signed a contract with doordash to use doordash as the main delivery people for their groceries.

Dyalekt:

Ah, thanks doordash

Pamela Capalad, CFP, AFC:

Yeah, yeah. Anyway, I think we got to go to a song Yeah, let's

Dyalekt:

let's go to a saw we got to play our first song. We're gonna try just playing it right from the spot here and seeing how it goes so we can give you all the info coming out of Trenton, New Jersey, this guy like the resume entrepreneur, personal trainer, hip hop artist model. Wow. New Jersey. Yep. Yeah, you're doing everything well. Not a certified financial planner, but maybe neck maybe. With this song called payroll taxes about paying payroll taxes from show Montego, check it out. We'll be back with you in two minutes and 20 seconds

Unknown:

do come into my space. Even in the streets relaxing, I'm still a CEO. payroll taxes in this monkey see monkey do planning. If you want to see what I do coming to Moscow to strike gangs highly addictive, certain levels that it took me out this was the case got acquitted from a letter that I wrote to the judge, the judge or or even after Gotta stay one believer rapture with your like trauma for whatever reason nothing and trees in the summer season on the belief that I know expecting the unexpected, and you're thinking that I'm some second, second, third fourth until that lifts away, he nor me started off with poetry so to see through like, you know what tree things seem efficient at first. Now follow like I'm in a hurry to I'm alive and well who was computation commutation? For the ship fam constipation jalama, making the slang that they used to call the farmer snake. Even dogs in the streets for lack of a CEO pay payroll taxes and this monkey see monkey do. You want to see what I do come into my space. In the streets relaxing, I'm still the CEO. payroll taxes in this monkey see monkey do planning. If you want to see what I do come into my space. Come up from a humble place. I'm just really happy to be nosy. I'm happy to be free. I'm happy to be here to share my words. You don't say continue to push my vision. You know, I'm saying continue to get up and have goals and be able to serve people and be able to do what I do as a person because it could have not been that way.

Dyalekt:

Yeah, yeah, yeah, we're back that was so Montego with payroll taxes. I really love how artists are being more transparent about the stuff they do. And like that wasn't even like the whole focus of like, you know, everything that he was talking about, but it's like, I just want y'all to know, like, I have to run my business while I'm running business. Yep,

Pamela Capalad, CFP, AFC:

I love it. I love it.

Unknown:

Alright,

Pamela Capalad, CFP, AFC:

y'all we are talking about today, we just talked about prop 22, the law that passed in California that hurt all gig workers and consumers. And we are going to be talking about stimulus package next. But before we do that, I want to shout out gig workers rising, their Twitter is at gig workers rise gig workers rising.org, they did a huge campaign push to vote no on Prop 22. And since the past, they actually put out an app for all drivers to be able to download and know what the benefits they are getting from pop 22 and make sure they actually take advantage of you know, your rights.

Dyalekt:

You know, what's interesting about gig workers rising? I'm really interested in talking to them and finding out more stuff from those cuts. As I've been saying for a minute now, as this gig economy thing has begun to blow up. This has been a way to finally kind of beat the union so that sidestepping Yeah, and I've been saying for a while I'm not you know, that's not how my mind works. We need some sort of organizing model that's like unions, but it's modernized. And what this gig Workers Union for the workers are talking about. Seems like a new version of what the union's used to be doing.

Pamela Capalad, CFP, AFC:

Yes, that's exactly what they're trying to do is right now they're trying to make because then as an independent contractor, you can't unionize? Yeah, because you're an independent contractor, and you're self employed. So they're trying to change the laws around that. The other thing that you can do is this only happened in California, we saw the fall over what happened California, one thing I mentioned is that Uber and Lyft and doordash. And all these places threatened to raise prices. If prop 22 didn't pass, they said rates are gonna go up, it's gonna cost you more to get these services, all of this stuff, etc, etc, that are familiar.

Unknown:

Yeah, right, you know that we're saying the same thing.

Pamela Capalad, CFP, AFC:

They're gonna go out to California, all of the stuff, they were sending all of these threats. Well, guess what happened, prop 22 passed, and the cost to fund prop 22 are getting passed on to the consumer. Uber and Lyft and doordash are alternating between 99 cents to $2 more per delivery or per ride until make up for the cost of these extra benefits. Isn't the major

Dyalekt:

brother causing these extra benefits? Or were they just planning on doing a rate increase anyway? And they wanted to tie it to simplicity To me, it seemed like it was your fault. Yeah, it was just like, Hey, can we add gas light into the bill?

Pamela Capalad, CFP, AFC:

Yeah, right. It's like, Oh, you gave us what we wanted. Here. We're gonna charge you more fear. Because

Dyalekt:

he said he was gonna charge you more and just got spooked into thinking that we were gonna charge you more we charge you more. And that's just what happened. But that's the thing, though, when you undercut the competition to the point where you're the only game in town, but then you can charge whatever you want. Yeah,

Pamela Capalad, CFP, AFC:

yeah. And that's where we're at. That's where we're at. So let's switch gears a little bit. seamless check. I don't know if it's more positive. But

Dyalekt:

you know, there are a lot of people who are like, I'm glad that we got anything at all. So you know, we got some, we got some more and other folks are like now we can see more we won't see

Pamela Capalad, CFP, AFC:

but we'll see joe biden's plan is nothing is set in stone as we saw the back and forth of the second stimulus package. We were waiting for people to sign the bill. Well, you know,

Dyalekt:

but but just, you know, like a nice pair of gray sweatpants. It's not just that Six, it's a whole package you're getting,

Pamela Capalad, CFP, AFC:

you're getting a whole package. I'm just laughing cuz dialect is wearing gray sweatpants, right? You're like a classy, classy virgin. Alright, so let's start with the stimulus check. You heard the number and $600 per person, including children. So if you, for instance, have two adults in your household and two children, you'd be getting a 20 $400 check. For a lot of us, it was already direct deposited into our account, especially if you filed your 2019 taxes online, and you received your tax refund or paid your tax liability with a bank account. So some people saw that come in. Otherwise, if you didn't, if you go to irs.gov slash Coronavirus, slash economic dash impact dash payments, or just google where's my stimulus check, honestly, then you'll get a link to the IRS to figure out where your stimulus check is. And when it's coming. If you didn't have that direct deposit, then you're probably going to get a literal check in the mail. They are basically phasing out. So if you made more than $75,000, or $100,000, as a married filing jointly, then you are not getting your full $600 you're getting a reduced amount. And then if you made more than $87,000, you get you don't get a $600 check at all. So if you're waiting for your stimulus check, it may be that you just got phased out of it.

Dyalekt:

Yeah, you made too much money. That's what they mean by phased out if you make anywhere between 75 grand and 87 500, then you're gonna get a reduced rate. Yeah, just did I think it was $100 to every $5. Yeah,

Pamela Capalad, CFP, AFC:

every $100 of income. Yeah, exactly, exactly. And then this is based on your 2019 returns. Now, some people are asking, Well, I never even got my first stimulus check. Right, we didn't get our first day. We didn't get it. The thing about these stimulus checks, though, is there what's known as a tax credit advance. So what that means is one your stimulus check is not taxed, because it's not considered income, it's considered a tax credit. And it just gave it to you ahead of time, which is the advanced part, right? It's not something that you're gonna have to pay back. It's not that type of advance. It's not like you got a book deal. Yeah, exactly. It is basically, hey, we wanted to give you this tax credit, but it's not tax filing time yet. So instead, we're going to do that. So the next thing is if you didn't get your first or second stimulus check, because your 2019 income was too high. And because COVID happened in 2020, a lot of people's income actually went down in 2020, even though they technically made too much money in 2019. When you file your taxes for 2020, you will get that tax credit within your tax refund. So you should see your stimulus check in that tax refund. If you didn't get either one. It'll all be reconciled there. And again, that's if you made the right amount of money if you made the right amount of money. Yeah, so for the first you must check IDs if you made $99,000 or less for the second stimulus check. If you made $75,000 or less, you get the full amount of the stimulus checks

Dyalekt:

if you were over 100 k for both time periods. Congratulations.

Pamela Capalad, CFP, AFC:

You're so proud of me. COVID. Yeah, you're doing all right. I

Dyalekt:

know you still got stuff to read. ship it. It's like little crunchy.

Pamela Capalad, CFP, AFC:

It's a little bread. I'm having a boy best Chai right now with some oatmeal. It's delicious.

Dyalekt:

biscuits leaves thrown in.

Pamela Capalad, CFP, AFC:

My God made it sound so appetizing.

Dyalekt:

That's my job. brunch partner the budget. There you go.

Pamela Capalad, CFP, AFC:

So the next thing we want to talk about is unemployment,

Unknown:

unemployment.

Pamela Capalad, CFP, AFC:

Unemployment got extended. Thank goodness for you.

Dyalekt:

Definitely know that unemployment got extended for those of you who are unemployed, right?

Pamela Capalad, CFP, AFC:

Yeah. Anyway, unemployment insurance got extended. The thing about unemployment is one we saw those extra $600 checks through July 31. Those stop but stay unemployment continued to pay. But see unemployment insurance only was guaranteed through December 31. Because that's how the stimulus package is written both hoping that we didn't need it anymore by then. And here we are, right. So 2021, they set up extended unemployment, they added an extra 11 weeks. And on top of that 11 weeks, there's an extra $300 every week of additional pandemic unemployment assistance. Insurance is

Dyalekt:

300 bucks, 600. But hey,

Pamela Capalad, CFP, AFC:

it's it's something more, right. And the thing about the $300 is you qualify for the $300 of extra unemployment a week if you file for any amount of unemployment. So if you are fully unemployed, or partially unemployed, any amount in between, you'll get the state unemployment, whatever that part amount is, but you get the full $300 a week for 11 weeks to do it. Also, this route of unemployment still applies to gig workers. So that's one of the huge, huge, huge changes, I

Unknown:

feel like that's gonna need to be permanent, it's

Pamela Capalad, CFP, AFC:

gonna need to be permanent. And we see that now especially if we just talked about prop 22. Right. We talked about good workers getting less and less benefits even though they should be classified as employees. So what we can do We can push for unemployment insurance to extend to not just employees, but to extend to independent contractors as well.

Dyalekt:

Yeah. But no, I really think that that's going to be a thing is like what was the stat by like 2050 70% of folks will be coming to work. So maybe like 2020 by

Pamela Capalad, CFP, AFC:

2020 40% 40% of workers would be good economy workers would be independent contractors. That's something that freelancers union just study about four years ago, actually,

Unknown:

have we gone back and track them?

Pamela Capalad, CFP, AFC:

Right, here we are. Yeah. Yeah. So

Unknown:

don't pull stats out. You're behind y'all got a double

Dyalekt:

mixing up the road to zero? Well,

Pamela Capalad, CFP, AFC:

that's a depressing show. They're

Unknown:

gonna work well together.

Pamela Capalad, CFP, AFC:

We should just do sad stats episode. No, that's terrible. There's too many sad stats, you'd be home. So the thing about unemployment is you have to file every week. It's a different qualifications for every state in New York State, you have to work less than four days a week and make less than $504 a week. Okay. Yeah. So again, every state is different, I think in California to make less than $450. So really, just check with your state. If you're already collecting unemployment, and you're filing every week, you don't have to do anything different.

Dyalekt:

So but what about like this other stuff that we get? What about a PPP? gonna mess with our unemployment? compensation, that

Pamela Capalad, CFP, AFC:

is a big conversation. That's a question we get all the time is can you do PPP and unemployment? And the answer is we think, yes, but not at the same time. So again, there was no guidance in the second stimulus package transparent

Dyalekt:

because the IRS already knows we are weak like we did

Unknown:

what are exactly the same time though?

Dyalekt:

This was our thought process. What we decided was, we can take unemployment when we're not making money, right? Yeah. So the PPV period is a time when you're making income. So during the time that you're getting a PPP, it's usually like a week of income,

Pamela Capalad, CFP, AFC:

but two and a half months.

Dyalekt:

Oh, yeah, yeah. So

Pamela Capalad, CFP, AFC:

why don't you use for PPP, the amount we qualify for is up to two and a half times payroll? Right? Yeah. So you can time it so that you collect income within two and a half months, and then you can collect unemployment after Now there are some situations if you want to be really aggressive about it, we're just like die like was saying, you can collect. You can say I made all of my income through PvP in a week, and then collect unemployment afterwards. We I was because I was just saying that's what our plan.

Dyalekt:

Yes. You know, we have it set up where

Pamela Capalad, CFP, AFC:

we're pretty aggressive. Well,

Dyalekt:

the numbers lined up for us were like, a week's worth of income. Yeah. And then so then ran out. And then we're collecting uniforms for the part after that. Yeah, we're ranking. Some of that

Pamela Capalad, CFP, AFC:

will go into this. But the tricky part about the PPP calculation amount is it's not based on your gross income. It's not based on the income you made or your revenue. It's based on your income after you've taken all your business deductions. So we'll go into what the hell that number. Yes, yeah. Oh, we

Dyalekt:

got a question, though. Oh, yeah. From Hamza shoot. I didn't get no stimulus at all. I thought it's an unemployment disabled, but I will get it automatically and the info on

Pamela Capalad, CFP, AFC:

Yes, let's talk about that. So one is you should be able to collect unemployment insurance, I would go on your state's unemployment website and see how you can qualify for unemployment insurance, because that's the one thing is you should be able to collect the extra $300 a week plus full unemployment if you're

Dyalekt:

unemployed, disabled, enough to apply for that one, isn't it?

Pamela Capalad, CFP, AFC:

Yeah. And you may already be on it. Yeah, if you're on it still, and it's just gonna continue going, just make sure to file every week. If you're not on it, I would go back and check. The other thing is the stimulus check is they only sent it out immediately if you have direct deposit available. So if you set up direct deposit to receive a tax refund in 2019, that's how you get your stimulus check. Okay,

Dyalekt:

yeah.

Pamela Capalad, CFP, AFC:

Yeah. The other thing is, if they're sending out regular checks, you probably didn't get it yet. Because those regular checks haven't been sent out by Google. Where's my stimulus check? And then you can just go to scroll down a little bit. There it is. So search for this one, we go

Dyalekt:

[email protected], huh.

Pamela Capalad, CFP, AFC:

So this is the link to find your stimulus check payment and figure out where it is. You can also just google Where's missing? Let's check. And this is probably one of the first links that pops up. But I would look that up for sure.

Dyalekt:

Yeah, go ahead. And make sure to advocate for yourself on that. Because they're not just going to automatically give it to you because you know, even when you are but they don't have to guess

Pamela Capalad, CFP, AFC:

but we did talk about earlier though, is make sure you file your taxes in 2020. Because if you didn't get either stimulus check, it's a tax credit. So you will get that stimulus check them out in your tax refund this year. So that's the other thing is it's not last forever. It's just you might not get it at the same time that everyone else is getting it.

Dyalekt:

Yes. And thanks for bringing that up. We really appreciate so we can put all this stuff together.

Pamela Capalad, CFP, AFC:

Yes, exactly. All right. The next thing is student loan payments were deferred through January 31. Thank you. They keep extending it first it was deferred through September and then it was deferred through the end of the year. Then it's deferred through I guess two weeks from So you may have to start making your payments in February, although there is, you know, Biden has been talking about student loans a lot in his plan. So we don't know what's going to happen. I say we hang tight through the inauguration and see what the first 100 days look like, if you're in a place where come January 31, you're like she had, I still can't pay my student loans, the thing you can do if they're federal student loans, which all of them are, if you are getting the student loan deferment is you can apply for income driven repayment. And if your income went down at all, or if you're unemployed, your income driven repayment program will also go to $0. Now, that doesn't mean that it will not accrue interest, but it means you can continue to further payments.

Dyalekt:

I've got no idea what's your ideas might not be the best idea. An idea? Okay, so you know, folks like to be like, oh, call your senator and call your official and, you know, say a thing and we'll put together a script, right? Yeah, I'm asking all of you. Poets out there all you words, people, I want you to harass and annoy your local politicians with your ohms about what happens to a student loan refer? Is it dry up like A Raisin in the Sun, you know, just go off. go off on a whole thing with it. It's just like, run, run a poems into their mind until they stop returning to here and all the step poetry stuff. And they just give us what we want.

Pamela Capalad, CFP, AFC:

That's great. I love it for for cars, cars for cars, let's use art to defer our student loan payments and cancel them altogether. Right, right. Yes, yeah. Sounds I'm gonna do that. Hell yeah. I want to hear it. revolution will be podcast, podcast. It's true and tick tock, all of that stuff. The other thing that they did extend on a federal level is there's no eviction through January 31. on a federal level, thank goodness. So if you were in the middle of eviction proceedings, or if you were about to get evicted, you have until the end of the month, but every state also took action on this individually. So for instance, in New York State, they actually extended the evictions and foreclosure moratorium through May 1 2021.

Dyalekt:

So I think that they tie those things together.

Pamela Capalad, CFP, AFC:

Yes, exactly, exactly. So if you're in the middle of an eviction or the middle of foreclosure in New York State, then that is extended, that is delayed again through May 1 2021. So if you are in a position where you still can't pay your rent, keep talking to your landlord, they can kick you out anyway, if you can pay what you can, that's great. If you can't pay anything for now, just hang tight and see what happened. You

Dyalekt:

know, there's the thing about how federally it's more about worrying about the tenants. And but like, more local statewide, we're talking to landlords and stuff, too, because we do have to be a unit we have to be a team do we do I know it's often very much like one versus the other. And when it's a big corporation who owns it, and you don't even know who it is? Yeah, probably, you know, they're up. But when it's just a family, or just, you know, that kind of the old couple who you rent the upstairs from things like that, please start talking to them. Yeah, to be real landlords, we have a tenant, and we talked to them, and we want them to continue, please continue to talk to us about stuff. Because we have those lines of communication open, we can fight the real oppressors.

Pamela Capalad, CFP, AFC:

No, it's true. Yeah, no, it's so true. So the other thing is, if you're donating to charity, the above the line charitable contribution deduction was extended through 2021. So that means if you contribute $300 to charity, then you get the deduction automatically. That's a new thing. I

Dyalekt:

don't know if y'all knew that. We couldn't do that.

Pamela Capalad, CFP, AFC:

Yeah, before Yeah, I couldn't it wasn't above the line before. If you donated to charity, then you would have had to itemize your deduction which I don't even know if

Dyalekt:

that's a whole big thing. I was just saying like the big thing was not easy for the average person to be able to contribute to charity and then deduct

Pamela Capalad, CFP, AFC:

Yes, it's true. It's true. So I want to talk about PPP

Dyalekt:

loans. Okay, before we do that, can we take a break? Let's take a break later on a song. We got an axon that we're gonna play. This is about your stimulus check. And we found this cat this just came out on January 11. This artist named the stinney God featured l dialogue DiCaprio Yes, I'm saying that name right with their song skinny stimulus checks. And I'll check that out for a quick second. And then we're going to come back we're going to talk about PPP and what else we have thought about

Unknown:

today PPP idea. Oh,

Dyalekt:

any questions y'all have PPP audio and any questions that y'all got to check out the song and we'll be back in a minute.

Unknown:

I don't care. I don't care. Oh my god. I might just give Chris a joke. We know the opponent Dallas, Dallas, just like me on the stage, they swear they called me on the pitch if you do go through with it, but if you don't feel like you want to do the tracking, Jimmy

Dyalekt:

Jimmy God, you know, love to you I care how much it is. But that bgl dialogue DiCaprio with me? Well, I, I want to share that just because I thought it was interesting that, you know, I love the perspective of folks who like not making these judgments about how we're feeling. There's so much emotion around these things. And so much frustration is one of those things about, you know, when you're in a bad relationship with somebody, and they don't really give you much, they don't really treat you well. And take care of you. And then you know, they give you a little something. And you're like, Okay,

Pamela Capalad, CFP, AFC:

it's like cell phone companies, right? It's like all the cell phone companies that sucked and they overcharge you and their plans are stupid, and you try to leave and they're like, Oh, wait, wait, wait, we'll give you a free phone. And but you can hear why there are folks who are so stressed out and so frustrated. They want something it's sometimes it's I mean, it is about the money, but it's not as much about the money. It's acknowledgement,

Dyalekt:

right. How many of us just need to be acknowledged in a physical, human and financial space? Yeah, no, no. Yeah.

Pamela Capalad, CFP, AFC:

So I get it. So shout out.

Dyalekt:

We understand. Maybe God speaker for how we all feel

Pamela Capalad, CFP, AFC:

the money. Yeah, exactly.

Dyalekt:

So speaking of taking the money, how can we get this? easy because it's technically a loan, but it's a forgivable loan. That's really a grant as long as you can.

Pamela Capalad, CFP, AFC:

There you go. So let's talk about that part first. So p2p loan forgiveness, because we are also entering the time where if you got your PPP loan in the first round, then you're able to get it forgiven, and they loosened and streamlined a lot of the process. So if your loan amount was $150,000, or less, which I believe, like 80% of the PPP loans were $150,000 or less, you can actually apply for loan forgiveness using a single one page form. And you don't have to send any backup information to it.

Dyalekt:

Because really, even though they call it a forgivable loan, the forgiveness is supposed to be the default.

Pamela Capalad, CFP, AFC:

Yes, exactly. Especially with these ppps. So apply as soon as your bank or your lender allows you to a lot of banks are putting their forgiveness application online. So it's literally just like so many and then waiting for forgiveness to happen margin budget just did it a month ago, and we're just waiting for the forgiveness to go through. The other thing is remember those ideal grants those economic injury disaster loan grants, we got like $1,000, or something for free. And it was a grant well, originally in the stimulus package, the cares act last time, if you got $1,000 from the idml. That means that you couldn't take $1,000 of the PPP loan forgiveness, so you'd have to pay back that $1,000 in PPP, if you bought the EDL grant, they took that away, you no longer have to pay back that amount. So both of them are true grants. The only thing with PPP is you have to make sure you apply automatic loan forgiveness does not happening with PPP, you have to have to have to apply. So look out for emails from your bank and lender. A lot of them are sending them out right now. So now I'm talking

Dyalekt:

about getting a second PPP loan. So it's the second Draw is what it's called, from the PPP look, yes,

Pamela Capalad, CFP, AFC:

it's round two. So if you didn't borrow last year, if you missed the deadline, or you didn't think you wanted the PPP loaded, you still can, if you're a first time borrow, as long as you have less than 500 employees, and you had business operations in 2019, you can borrow for two and a half times

Dyalekt:

your average monthly payroll, and it's a little bit more stringent for the second draft, you've already gotten one.

Pamela Capalad, CFP, AFC:

Yes, exactly. So if you're self employed, and you want to do PPP for the first time, then you just need to make sure that your 2019 tax returns are filed, and you have a positive number on your schedule C line 31. Okay,

Dyalekt:

I thought it was was that

Pamela Capalad, CFP, AFC:

Yeah, so if you go into your tax return in 2019, and I'm sure you all pour over your tax returns as soon as you receive them, and don't just ignore the email that you receive from your accountant. So let's revisit your tax returns again, we're gonna dial it's gonna pull up a Schedule C right now, are we gonna have visual visuals? Oh, my god,

Dyalekt:

you're gonna pull up a Schedule C form straight up from irs.gov. Our good friends? Well, we got we that's what it is. It's all about verification. We don't need the validation unless you actually are correct.

Pamela Capalad, CFP, AFC:

Oh, my God, this is so cool. Thank you, St. Mary, for being so cool. Okay, so yeah, net profit or loss line 31. Right here, if you see that, if there's a positive number in line 31, then you qualify for the PPP loan. Now the way to calculate how much you qualify for is you take that number in line 31, you divided by 12. So let's say that number is $12,000. In line 31, you divide it by 12. Right, and that's $1,000. And then you multiply $1,000. By 2.5, which is the maximum you're allowed to borrow. So that means that you're allowed to borrow 20 $500, under PPP, if you made $12,000, on line 31, your schedule C.

Dyalekt:

So let's say I only had the first part of it.

Pamela Capalad, CFP, AFC:

And then multiplied by two and a half. Now the best part about all of these electronic applications is they will calculate all of these for you, they'll tell you how much you qualify for mppp loan as long as you report whatever you have on line 31. So there you go. We just pulled up a tax form. Yay. Yeah, that's what you gotta do for it. That's what you got to do for it. Exactly. I love it. So that is whether you're a first time borrower or a second time borrower, that is how you calculate that amount. If you got your PPP in the first round, and you lost money in 2020. Compared to 2019, you have to show that you have lost at least 25% of your income between 2019 and 2020. It's not just that you lost money. It's that you're

Dyalekt:

down. Yes, exactly what went down by 25%?

Pamela Capalad, CFP, AFC:

Yeah, so if you're a second time bar, what that means is, if you made $100,000 in 2019, and you made $75,000. In 2020, you qualify for a second round of PPP, the calculation for the amount is the same. So line 31, on Schedule C divided by 12, multiplied by two and a half. And again, every online place where you can apply every bank, every lender, who does this online will calculate for you. Oh, right. Yeah, yes. The thing you do have to prove if you want to borrow for the second time is you have to submit PnL statements. So that's profit and loss statements. Yep. Yep. And you have to show that the same quarter in 2020, that the income went down the exact same quarter compared to 2019.

Dyalekt:

So if you had a March, and then you're comparing it only to one out March, yeah. January through March, the first quarter, yeah. Jamie through March, you can only compare that first quarter. You can't compare the first quarter to the year 30. Exactly. Because that's like, yeah, yeah, there's reasons why you would have lost money there.

Pamela Capalad, CFP, AFC:

Right. So you have to compare the same parties between 2019 and 2020. If you lost income overall, and what

Dyalekt:

sucks about that is like there are some people where it didn't matter for the specific quarter, because the specific stuff that happened in Corona, I know and I get it, but they don't care. It's easier for them.

Pamela Capalad, CFP, AFC:

These are the rules. These are the rules. So that's PPP. And we do highly recommend that you apply for it the first time around you didn't if you didn't do it, definitely do it the second time around if you qualify. Definitely do it. If you're trying to collect unemployment too. The PPP loan deadline is 331 2021 and I believe unemployment ends

Dyalekt:

just before that and remember even if you don't know how to get things together and you're worried about all what if I don't get the loan forgiven? Even if you're not able to get the loan forgiven? It has the best interest rate you'll ever see.

Pamela Capalad, CFP, AFC:

Yeah, you It's a 1% interest rate and you pay back a loan is yours. Yeah. So even if you don't get it forgiven, you can either pay back or you could just pay back the loan. Yep. The final thing I want to talk about is he I do the economic injury disaster loan. This was actually part of the first image package and the pair's act, and was still available. It

Dyalekt:

was hard to distinguish from the PPP the first time around

Pamela Capalad, CFP, AFC:

and mix them up a lot. That's why it was hard to distinguish like what qualified for the ideal. The thing about the ideal is those grants are gone, but the loan is still available. And the thing about the loan that is kind of amazing is one there is no collateral required. So Don't have to like, you don't have to prove that your business is making a certain amount of money or that it has any profits or anything like that, like a traditional business loan, they just give it to you based on your credit score. And if you have six months worth of business income, basically. So the terms are, it's a 30 year loan at 3.75% interest, and you can borrow up to $150,000, they calculate the ideal amount different it's line one on your schedule, see your gross receipts. So whatever number is in your gross receipts line, once, let's say it's $100,000, that means you can get a $50,000 PPP loan, what that means is you get this loan, you don't have to start paying it back for at least another year. And the loan terms are you paid back over 30 years, and you pay 3.75% interest. So just to give you an idea brunch and budget took in the ideal loan, we got $146,000 and our loan payment that's going to start in the years about $700 a month $446,000 to borrow and you can use that basically, to run your business, you can use it for operating expenses, you can use it for anything, the only thing is that you're required to get some kind of business liability insurance if your loan is more than $25,000. So basically, they want to say like, Hey, we want to know that our loan is protected, and the equipment that you have is protected and all of those things. And honestly a small price to pay, we have to pay $700 a year to get this business liability insurance. If I already have a business liability insurance, you send us a return, we just have to get a new thing. Yeah, because of that. Okay, yeah. And I feel like he was one of those forgotten loans that really like as well were taking advantage of as a business owner. We haven't seen loans like this in the past, just to compare, usually, a business loan will only lend you money for terms that are two to three years long. And their interest rates are usually in the 10s. Or in the or in the 20s sometimes depending on your credit score, the lowest business loan rates I've seen are like eight or 9%.

Dyalekt:

So it's kind of just like the PPP thing where like, worst come to worst terms are really good.

Pamela Capalad, CFP, AFC:

Yeah, just pay the loan back. And you don't have to pay it back for 30 years. So it's kind of amazing,

Dyalekt:

but around folks who are just have an emotional aversion to debt, which is a lot of us because we've been taught to Yeah, and a lot of times it has kept us out of disaster. But it's also been something that inhibits us from taking the next step.

Pamela Capalad, CFP, AFC:

Yes. Yeah, I'm so glad you brought that up. Because any kind of debt, especially right now feels like it's really scary to take on I'm saying, right, right. Yeah. And so the thing that's about the ideal thing about debt, in general, when the terms are like this is I like to think of debt as leverage. So especially if you're in a place where you know that you're gonna need some money for the business in the next couple years. This kind of loan is amazing, because it allows you to leverage the federal government essentially, to keep running your business. So for instance, like brunch and budget, the reason we borrowed the money is to make sure that in the next year or two, we are going to be able to weather whatever happened during COVID. And so it wasn't necessarily something that we like needed at the time. But it's something that we kind of got as a way to assure that we were going to be okay, even if something happened in the business. And that's really what I would use the ideal for if you're in that situation is like you need to make sure that you pay yourself personally that you can continue to run the business. And the ideal economic injury disaster loan is for these types of situations is for things like global pandemics. You know,

Dyalekt:

I guess that's what the economic injury disaster part of

Unknown:

his right, I guess.

Pamela Capalad, CFP, AFC:

Yeah, I guess so. So yeah. So that was stimulus package. That's where we're at.

Dyalekt:

So it's a lot of stuff, actually, some of it is the same thing, or reiterations of what we had in the spring. And then there's some new stuff attached. There's some extensions. And I mean, that's what we got. I don't think that it's enough yet. And we should continue to pressure the new administration to not only money, but also programs are going to work out for us. Yeah. And the other things that we should be thinking and worried about when it comes to the stimulus packages and making sure that we're financially solvent so we can make this next year not feel that last year.

Pamela Capalad, CFP, AFC:

Yeah. I mean, one thing that came up is like, what should I do with my stimulus check? or What should I do with my PDA?

Dyalekt:

Right, everybody would, yeah, yo, you should take your stimulus check and then flip it and put it into this thing and buy this a theory, um, and then maybe pay off your debt. And then I could alone God on a house, or in a business. I mean, there's just like, all this stuff that folks want you to do with it. And what's the real about that? Yeah, I

Pamela Capalad, CFP, AFC:

mean, the thing about these stimulus checks right now is the first thing is Are any of this income, the PPP money and the idea alone, is first and foremost, to take care of yourself, right? Take care of your bills. You don't have to throw money, your credit card debt, you don't have to throw money into savings and like hope that it stays. The thing right now is like, make sure that you're taking care of your health and your sanity, and that you're covering your bills, you're keeping a roof over your head, right. And so that's the first thing. The next thing is right now, I recommend that you keep money in savings as much as possible and don't worry about paying down consumer debt. So don't worry about it. on your credit cards right now, if you're not already on a debt pay down plan an extra $600 towards your credit card debt is not going to make enough of a debt. You're gonna rather have that money in savings. I'm

Dyalekt:

not gonna bring it up. I was gonna bring it up we were talking before about there's like this Kiplinger article. If you're not familiar with Kiplinger, that was the guy who wrote The Jungle Book. Oh, sorry, some some dude destroys the jungle. Yeah, anyway, the Kiplinger's they, they wrote this thing about some money smart ways for you to be able to deal with your check. And it was like save for retirement, pay down your credit card

Unknown:

and give it to charity.

Dyalekt:

The big thing with this stuff is, look, if you're not already doing that, this $600 check is not gonna make a dent. It's not gonna be able to get you to kickstart the thing you're doing because you're not getting more checks. It's not going to be sustainable. We always advocate for if you're gonna start a new economic habit to do it when it's hard, because if you can do it when it's hard or just when times are regular, then you'll be able to do it when you get windfalls don't use windfalls as like a Kickstarter, because it's not gonna work. You're gonna be back on Kickstarter again next year begging again.

Pamela Capalad, CFP, AFC:

Yep, exactly. And on that note, on that note, yeah,

Dyalekt:

let's go to our last drink. Any of the things that we want to wrap up or I mean, we're happy to be back with y'all again next week. Check us out on fondue licks.org you can check out the podcast listening to it. Check out all these wonderful artists. If you are an artist who has some music that talks about finance or racial inclusion or the confluence of them, please send them to us we're fine but you know how to get it out. And if you don't then ask somebody who asked somebody you ought to know our last song is an Folsom California for this crew called a barely a Mon and their song living ways check it out and we'll check you next week. So next week if you're not tired of us by then so let's play this jam and get on out of your way living wage a belly Amman and we are at your budget podcast part of the reason wealth network

Unknown:

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