This 26-year-old hairdresser earned $280,000 before the coronavirus pandemic—here's how he's doing now (via CNBCMakeIt)
The pandemic isn't the only thing that changed Pardoe's budget, however. Over the past year, he's worked on learning more about money and taking control of his finances. "When I did my interview last year, I had no financial advisor because I didn't know any better, and I was young," he says. "You're not taught finances. I learned a lot about just how to manage things a little bit better, and I'm still learning now.
"It's unnecessary for me to have two cars," he says. "I think getting that BMW is a bad decision, so I'm excited to hop off that train." If the lockdown in Detroit persists past May 15, and he's unable to reopen the salon, he plans to halt contributions to his savings and defer his car payments. "I will most likely cut back on adding any money into my life insurance, my Roth IRA and my brokerage account," he says. It doesn't make sense to Pardoe to keep putting money away for the future if he's not able to cover all of his expenses right now.
"What's helping us maintain some kind of normalcy throughout all of this financial craziness is knowing that I'm not going to have to let anyone go permanently," he says. "As long as we're closed, they're out of work. But the second we're back open, they're all back.
As Pardoe considers pausing contributions to this policy, it's also a good time to reevaluate it altogether to ensure that he's getting the best value for his money. He should look into converting it to a term life insurance policy, which is typically much cheaper, Hussey says.If the shutdown continues past May 15, Pardoe plans to start consciously cutting expenses wherever he can. That's a smart move, says Hussey.
"Somebody who doesn't sell products," she reiterates. "Their only job is to give him advice at an hourly rate. That would be the best investment in himself right now."
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