Looking at reducing expenses

[Tradd]

As you know, I got laid off 3/25. I got my last paycheck 3/31. I was paid through 3/31 and was also paid for the 4 unused accrued vacation days I had.

That meant I was able to pay all bills through the end of May (except my credit card bill). I had just paid April's rent and car payment out of the 3/15 paycheck.

I was also able to pay the second half of my car insurance and my renters insurance (both were due in late May). Car policy renews in October. Renters is good for a year.

I just got the email renewal notice for my license plates (due late May) - $151. I did it online right away.

I should have my first unemployment payment by the end of the week (certify Wednesday). Plus, there is the upcoming $1200 fed stimulus payment.

For unemployment, I'll be getting $922/week. This includes the $600/week from the feds, minus 15% fed/state taxes.

I have $500 in the bank (that includes my savings).

So my question is: would you play bills ahead or just sit on the money until bills are normally due? I can't tell you how much peace of mind I get from bills being paid through the end of May right now. Job search seems like it's going to be slow until whenever stay at home order is lifted (currently through 4/30 in IL).

My bills are rent, car payment, cell phone, utilities (electric, gas, home internet). Otherwise, gas and groceries. I need a hair cut badly. I'll have to buy a new pair of dress shoes once I start working (about $100 - I wear dressier Merrells, the current pair is 9 years old). I'm going to dive as soon as we're able to. Local quarry is cheap and the dive boat would be covered because I have a ton of credits on my account from weather cancellations last year, as well as 9 charters I won from various things.

I'm leaning towards paying my bills ahead, but I was just wondering what everyone's thoughts are. Thanks!

[Yppej]

Are there any irregular expenses you can foresee? For instance, is your car older and might it need repairs?

[Tradd]

Are there any irregular expenses you can foresee? For instance, is your car older and might it need repairs?

Car isn't even 1.5 years old yet.

[Tradd]

I'm still trying to figure out what to do with COBRA - My goal for this week is to research other policies on the Marketplace.

[Yppej]

I would keep an emergency fund of maybe $1000 if you don't have likely irregular expenses. I would pay things you cannot get extensions on first. In my state you cannot be evicted during the emergency, for instance, and your utilities cannot be cut off. Also local and state taxes and fees are being postponed. In some of these instances your late payment cannot be reported to credit bureaus and you cannot be charged interest or late fees. So maybe prioritize car and phone payments, which you will need for your job search.

[Tradd]

I was definitely planning on keeping $1K in an emergency fund.

Even if they can't evict you during the state of emergency, you'll STILL have to pay the rent eventually.

[SteveinMN]

I'd sit on the money. You've got a good month until you need to start paying bills again. That gives you time to deal with the unexpected repair somewhere, a medical co-pay, or one of those income sources not showing up when they said it would.

[herbgeek]

I'm with Steve. Keeping the money in the bank gives you flexibility should you need it.

[iris lilies]

The only reason to pay bills ahead is if you are tempted to spend any of that cash sitting there on non-essential things.

[Teacher Terry]

When we were young and my husband was the only person working he got laid off a fair amount. We had savings and never paid anything in advance.