There is a lot of pressure on the American economy right now and changes in private and public sector employment practices are affecting job security for many folks. There are a lot of people who are taking early retirement or being laid off from their jobs or fear a future lay-off. If you feel financially unstable and not sure what to do, this podcast is for you.
Join us for a conversation with mortgage credit and financial coach Lori Jones Gibbs, CEO of LJG Consulting.
Check us out at www.2blackmomsandamic.com.
You can also hear us on Spotify, Amazon Audible, I Heart Radio and Podchaser. If you like what you hear, we hope that you will give us a great review!
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_03 (00:00):
Hi, I'm Glenda.
And I'm Lisa.
And we are Two Black Moms and aMic.
Between us, we have six kids,four boys and two girls.
SPEAKER_01 (00:12):
And we're here to talk to you about everything
from diapers to degrees.
Welcome to our podcast.
SPEAKER_03 (00:19):
There's a lot of pressure on the American economy
right now, and changes in thefederal policies are affecting
job security for many folks,young and old.
We have a lot of people who arebeing laid off from their public
or private sector jobs or fearof a future layoff.
If you have been laid offrecently or feel financially
unstable and are not sure whatto do, this episode and this
(00:42):
podcast is for you.
SPEAKER_01 (00:44):
That's right, it is.
Today we're talking to LoriJones-Gibbs, CEO of LJG
Consulting.
Lori is a mortgage, credit, andfinancial coach and author.
A retired banker, she served asSenior Vice President and
Community Development BankingMarketing Manager for the
Carolinas at PNC Bank.
And in this role, she led a teamof financial experts to support
(01:06):
wealth creation throughfinancial education, access to
home mortgages and credit,workforce development
initiatives, and neighborhoodrevitalization.
She's the author of two books,Yes, I Would Marry Him Again,
Wives Salute TheirAfrican-American Husbands, and
her second book, Yes, You'reApproved, The Real Deal About
Getting a Mortgage and Buying aHome.
(01:26):
We want to welcome you today,Lori.
Thank you so much for joining usat a very crucial time.
SPEAKER_00 (01:32):
Well, thank you, Glenda and Lisa, for the
invitation to be part of TwoMoms and a Mic podcast.
SPEAKER_01 (01:38):
Well, it's our pleasure.
I truly appreciate theinvitation.
Absolutely.
Anyone reading the news tonightor in the last week or two knows
that a lot of families are goingthrough a lot of financial
instability.
Government workers are facinglayoffs and the private sector
is following suit with thefederal government and laying
people off.
And it's all in the news.
Just as a bottom line, what doyou tell people who just got
(02:02):
laid off?
How should they go aboutmanaging their financial
situation?
SPEAKER_00 (02:07):
The first thing I would tell them after they get
beyond the emotional shock,because it is a shock and it
does have a psychological impacton individuals when they lose
their job.
But I would also say to them,reassess your goals.
When your life changes, yourgoals and strategies may need to
change as well.
A job loss or layoff may requirea temporary adjustment to your
(02:30):
financial situation, but mayalso open up new opportunities.
Your retirement and savingstarget may change depending on
where you're at in your careerand what age you are.
So it continues to build.
But keeping up with yourlong-term commitments can help
you stay focused and motivatedin the short term.
SPEAKER_01 (02:49):
Yeah, so what you're saying is no matter where you
are financially, either close toretirement or kind of an early
career, There's a pivot that youcan make to kind of buffer the
shock of losing your job.
SPEAKER_00 (03:01):
Yes.
And I also think when peoplelose their jobs, there's some
basic things they need to dobefore they sign anything.
They need to review theiremployment contract because they
may have things they're eligiblefor that they've not thought
about.
Right.
They may also need to not sign atermination agreement because
it's not clear.
Even in at-will states, you havethe right to engage in a
(03:22):
termination.
and seek an attorney whounderstands employment law.
And as my mother would alwayssay, if it doesn't feel right,
find someone that's going tohelp you through it.
Usually in a case like this,it's probably legal counsel.
SPEAKER_01 (03:34):
So in the federal government sector, you've got
federal employees who are eithertaking an early retirement or
forking the road or being laidoff.
A lot of them were associatedwith unions, but I know that
that's kind of problematic rightnow.
Do you have any thoughts aboutthe employee-union relationship
in the face of the layoffs thatwe're seeing?
SPEAKER_00 (03:54):
Well, I think unions are there to do a job, and I
think that they will continue towork for the employees.
I think we're in different timesright now.
I think those are going to bemore challenging than they were
in the past.
I think that our country islooking more toward
privatization.
And I think you have seen somewins and some losses with
unions.
It just really depends.
(04:15):
But I think what everybody cando is they can tap into their
network.
Your network becomes crucial.
But also, you need to tap intoupscaling.
And what do I mean by that?
This is never a better time toexplore your career
possibilities and develop bothnew and old skills.
Consider attending industryevents, joining online forums,
(04:36):
and reconnecting with formercolleagues, online or in person.
One thing COVID did for us, ittaught us that we could work
remotely and be successful atworking remotely.
I also think when you're lookingat your upskills, this gives you
a great time to go startinterviewing again.
If you've not interviewed inyears, this is the best time
(04:57):
before you actually go to a jobinterview.
to tap into your network andwork through some interviewing.
Make sure, what are the newinterviewing skills?
What are the key words they'relooking for today that were not
there 30 years ago when you mayhave gotten your job?
What's key?
And I think those are the veryimportant things that people
need to understand.
(05:17):
Just don't give up on yourself.
SPEAKER_01 (05:19):
Well, the thought of interviewing, especially if
you're sort of late career, isthat can be a little daunting.
SPEAKER_03 (05:25):
Even when you're upskilling and you're moving on
to doing something else, likeyou're truly going through that
whole process of revamping yourresume, making sure that you are
putting in the buzzwords that AIis kicking out.
SPEAKER_01 (05:38):
Yeah, it's a different world now, right?
It's a
SPEAKER_03 (05:40):
different world now.
Where you used to think thatputting everything on there was
important, now not so much.
You know, make sure you have anupdated LinkedIn page.
Although people feel differentlyabout it, but there's a lot of
information you get off ofLinkedIn.
Even if you are not applying tothe numerous jobs that they put
on there, at least you'relearning about the different
(06:01):
things that jobs are lookingfor.
And this goes for all age groupstoo, not just if you were
unfortunately laid off becauseafter 30 years, someone decided
that it was time for you to gowhen you weren't ready to go.
But even if you were just therefor a year, maybe you left
private industry to go into thegovernment.
Now you got to go back and makeconnections with the network you
(06:24):
had before on both ends.
So I agree.
I think those are all valid,good points.
Thank you for sharing that,Lori.
SPEAKER_01 (06:31):
Are there anything, things that sort of the big
monthly payments that we shouldthink about trying to negotiate
with like your mortgage companyor with your landlord?
SPEAKER_00 (06:39):
Yes.
What I like to say to everybodyis you must be proactive.
You must take the steps.
If you know that your salary istaking a hit and you've
revisited your budget and you'reseeing where there are going to
be some challenges in yourbudget, you need to be
proactive.
Now, when I say you need to beproactive, if you have a
mortgage, you need to call yourmortgage servicer.
(06:59):
The key here is finding theperson who gets paid to say yes.
SPEAKER_03 (07:04):
Oh, that's awesome.
I think about that.
And the person that's paid tosay yes.
Not everybody's paid to say
SPEAKER_00 (07:10):
yes.
You know, there are blockers.
They say no, no, no.
That's the level that they'reat.
They're not empowered to sayyes.
You keep going until you get tothe manager.
You write down every name, thedate, the time you spoke with
them.
And then you say yes.
Can I be in contact with you?
Who's going to be the primaryperson handling my account?
(07:30):
You want an individual becauseyou don't want to be lost in the
soup.
Right.
That's a good point.
So now that you have a name, nowyou can start working on the
planning.
I first tell people, sit downand figure out what you think it
is you can pay.
Mortgage companies, they have anumber of options that you might
be eligible for.
(07:51):
But don't agree to somethingthat you're not going to be able
to keep.
What are some of the options?
Lender options include anythingfrom forbearance to repayment
plans to loan modifications,allowing for temporary payments,
and adjustments of your loanterms.
Oftentimes, people don't thinkabout that.
Lenders are not in the businessof foreclosing.
(08:13):
They do not want to foreclose.
SPEAKER_03 (08:15):
That is so true.
I worked for Prudential MortgageCompany many years back as an
operations analyst, putting insoftware to help them understand
What I learned doing that wasthey really don't want to
foreclose on you.
They give you a long period oftime before they actually
foreclose.
And there was a reason for that.
Continue teaching us, Lori.
SPEAKER_00 (08:36):
One of the first things one might want to
consider is what is called aforbearance.
A forbearance allows borrowersto temporarily pause or reduce
their mortgage payment for aagreed upon period that's been
established by them and thelender.
Now, you ultimately are going tohave to pay it back.
But this is where It can begood.
Any missed payments would eitherbe paid in a lump sum or will be
(08:59):
paid at the end of the loan.
They add it to the term.
So let's say you had a 15 yearmortgage and you're at the 12th
year now and all of a sudden youget laid off and you really want
to keep your house.
And let's say your monthlypayments are going to probably
be in the rear of$20,000.
Don't take that$20,000 andwhatever your monthly payment
(09:20):
is.
Divide that and they can add itto the end of the mortgage.
So instead of it being 15 years,it might be 15 and a half years,
depending on what the monthlypayment is.
Now, you want to also do thatbecause many people have their
taxes and their insuranceescrow.
This is why you must talk toyour lender.
The lender does not want you notpaying your insurance because
(09:42):
they don't want their propertyat risk of loss.
Right.
But you don't want a higherpremium insurance on it either.
So if you talk to them about itand they include it in your
monthly payment like they'vebeen collecting it, it's going
to be better for you to do itthat way.
So forbearance is an option.
Repayment is an option.
It's a plan to resume regularmonthly payments while also
(10:03):
paying off a portion of yourpast due amount each month until
the loan is current.
Think about that.
You might be out of work for awhile, but you get your job
back.
And now you're earning enoughmoney not only to pay what you
owe, but add an extra$500 tocatch up your arrears.
Explore your options and trulyfigure out what's best for you.
(10:24):
What may be best for you, Lisa,may not be what's best for
Glenda.
It becomes a personal decisionbased on your personal financial
situation.
And if
SPEAKER_01 (10:31):
you're able to negotiate an alternative payment
arrangement on your mortgage,for example, that's not going to
affect your credit rating,
SPEAKER_00 (10:39):
right?
That's why you have to beproactive with the lender.
If you're very proactive, Ioften tell people, go to the
post box and get the mail.
Just because you're not goingthere doesn't mean you're not
late.
But if you're proactive, it'sgoing to be better for you to be
proactive.
Loan modification.
Some people just simply need aloan modification.
Well, would they adjust theoriginal terms of the loan that
(11:01):
makes payments more affordable?
That's really great if you had ahigher interest rate loan and
the rates are lower.
If they can modify it simply forinterest rate, reducing it
because you can pay that.
Think about
SPEAKER_01 (11:11):
that.
So that would be, for example, achange in interest.
That you just said.
Or could you lengthen the loanif you've got a 15-year and you
want to take it to 20?
SPEAKER_00 (11:20):
Right.
Those are all things that can bediscussed in a modification, a
loan modification.
Again, refinancing is justreplacing your current mortgage
with a new one with differentterms, potentially making the
payments more manageable.
But you see, these are thingsthat lenders have.
SPEAKER_03 (11:35):
They don't advertise that they have these things.
SPEAKER_00 (11:38):
Because consumers don't ask.
People heard of FHA and theyheard of mortgage insurance.
Well, if it's with you for thelife of the loan until you
notify the lender, then I'm at78% loan to value.
Why am I paying this mortgageinsurance?
If you don't know, you don'tknow.
SPEAKER_03 (11:55):
Lenders make money off of those loans.
They package them and they sellthem as securities.
So listen to what lawyers tellyou.
SPEAKER_00 (12:03):
Then there's always the short sale.
Selling the property for lessthan the outstanding loan
balance with the lender'spermission.
Allowing the borrower to avoidforeclosures.
This is a tool you use if you'rereally at the point that you
know there's no way you can saveyour home.
But you want to do everything inyour power to save your credit.
You want to do everything youpossibly do you can do to save
your credit.
(12:23):
Because what you're doing there,you're simply saying, hey, this
house might be worth$500,000.
I can only get$350,000 for it.
Mr.
Lindo, are you going to let melet it go?
Now, let me caution you here.
There may be a deficit judgment.
that they place on it, or theymay give you a 1099 for the
difference.
That now becomes a taxobligation.
So whatever agreement you getto, don't be over anxious.
(12:47):
Do a little due diligence.
Don't agree to do anything untilyou know this is what you can
do.
And most of the lenders aregoing to work with you.
Because again, just as Glendasaid, they're not in the
business of foreclosing.
Let me kill that myth right now.
They are not in the business offoreclosing.
Think about it.
They have packaged those loansand sold them on the market, and
(13:09):
they're expecting a return.
Well, if they belly up, theystill have to pay those
investors what they sold thoseloans to them for.
So it's not as simple as saying,ah, they can do it, but they
also have to protect.
If you're a financialinstitution, you generally have
stockholders, and they'veinvested in it.
D in lieu of foreclosure whereyou voluntarily transfer the
program back to the lender inexchange for release of the
(13:30):
mortgage debt avoidingforeclosure.
I always tell people that Ithink that that's one, if you
know that you get ready to leavea certain community or leave a
certain state and you've tried,that might be your option.
SPEAKER_01 (13:42):
Who could you talk to about like your many options
and how to decide what to do?
You call the servicingdepartment now.
SPEAKER_00 (13:48):
How do they know what's best for you?
Well, when you get to the personwho knows how to say yes.
SPEAKER_03 (13:55):
That's the one we got to
SPEAKER_00 (13:55):
keep.
You will get there.
But when you think of the D inlieu of foreclosure, if you are
moving to avoid foreclosure, youknow that you're going to move.
The thing that hurt me most in2008 when we had the housing
crisis, and I remember thehousing crisis, when you saw
people furniture and stuff infront of their house.
(14:16):
Not every mortgage is for everyconsumer.
And in 2008, we had some productout there that was not for every
consumer, which kind of createdthat hardship.
I'm a traditionalist.
I tell my kids, get your 30-yearfixed rate.
If you have extra money to payon the principal, do it.
But at least you've taken it outfor the longest possible pay.
(14:36):
Yeah, you'd always pay it early.
You can always pay it early.
You can always make an extraprincipal payment.
You can always talk to Linda andsee if you can do a monthly
payment.
Things work.
Yeah.
And then this last one is just agrace period.
But a grace period really isjust most of the mortgages are
late after 15 days.
Most lenders nowadays will giveyou a one-day grace period and
(14:58):
not charge you a late thing.
But if you get not because youask not, you have to ask for
these things.
You need to repeat that.
You get not because you ask not.
SPEAKER_01 (15:08):
Yeah.
Hiding under a shell is notgoing to make things better for
you.
No.
SPEAKER_00 (15:12):
And then, you know, there's always the option of
saying, and depending on whereyou're at, could you pay the
interest only for a while?
This is America.
Everything is negotiable.
Doesn't mean you're going to wina negotiation, but at least
start the negotiation.
SPEAKER_03 (15:26):
Those are all excellent points and taking me
back to a period of time wheremortgage was my life for a
minute.
There I was learning about itand all the ins and outs and how
they make all the money off ofus.
So thanks for sharing that.
Thank you.
SPEAKER_01 (15:39):
What about if you're a renter, though?
You know, the same factors don'tapply, but the principles still
apply, right?
Well, you have to
SPEAKER_00 (15:45):
notify your landlord.
And hopefully you've had a goodrelationship with your landlord.
You've been a good tenant.
You've just run on hard times,right?
Now, landlords who have had goodtenants generally will work with
it.
But we're in a different timeright now.
We don't know how many tenantsthat landlord may have that's
having these same challenges.
(16:07):
So, but I would say, Call thelandlord, request an extension,
just say, hey, I'll pay the latefee, but I know the next two
months I'm going to have a hardtime.
I'm trying to find me anotherjob, but I promise you I will
pay you.
Most landlords will try to workwith you if they can.
And guess what the landlord hason you if you don't pay them?
They have your social securitynumber.
They have all your informationthat they can report you to the
(16:30):
credit bureau and they can takeyou to small claims court to get
their money.
But be honest, bestraightforward, and be clear on
what it is you need.
Propose a plan.
SPEAKER_01 (16:40):
Yeah, that's a thought, right?
SPEAKER_00 (16:41):
Propose your own plan.
If you really know, send awritten out, sit down, write out
your proposed plan to thelandlord.
That's showing good faith.
That's showing that you'reserious about what your current
financial situation is, but youknow you need a roof over your
head.
SPEAKER_03 (16:56):
That's a big deal, especially with renters.
So many people are renting now.
Also, it depends on, I think,the state you're in.
Like if you're in New York City,I don't know what landlords are
interested in New York.
That's all I'm going to say.
SPEAKER_00 (17:11):
Your point is good because in some states are
tenant friendly.
And when I say tenant friendly,it can take you six months to a
year to evict a tenant.
And generally, tenants knowtheir rights.
So that way, if a tenant comesto you in good faith saying,
hey, I know I'm running intothis problem.
I've been a landlord.
The good ones, you don't have aproblem with.
(17:32):
The bad ones you find out by thesecond month.
Even if nothing's happened.
It's kind of like the engineersalways tell you if you buy an
appliance, you'll find out ifit's a linen within 30 days.
If it passed the 90 days, yougot a good one.
You have a tenant with a getover mentality, you're going to
know within two months.
Why get over two months?
Because you probably requiredthe first month in the second
(17:54):
month.
So come the third month, You'llknow.
SPEAKER_03 (17:59):
Okay, so even with houses, mortgages, rental
property, we all have utilities.
So how do we handle utilities?
SPEAKER_01 (18:07):
Yeah, the gas bills have been really high.
I don't know if you all havenoticed.
It was really cold, but peoplehave also been complaining
about...
Well, I always say,
SPEAKER_00 (18:15):
after you've been in your home for a year, both the
gas company and electric companycan give you what they call an
equal payment plan.
Because what they do, theyanalyze...
your usage for that year.
And then they can sing and workwith you and give you a
proposal.
So they may say to you, and thegood thing about this, it's not
fluctuating throughout the year.
Not to have these surprisebills.
(18:37):
No surprise bills.
SPEAKER_02 (18:38):
Do they also call that budget planning too?
SPEAKER_00 (18:40):
Budget planning or even payment planning, depending
on the utility.
But they do that.
And then generally on theanniversary, they send you a
notice and they say, okay, youowe us$70 or you have 70 plus.
Do you want us to apply it andkeep your payment the same?
But the good thing about theequal payment plan, the budget
(19:00):
plan is each month that paymentis going to be the same amount.
So you're not dealing with anyshock.
Yeah, because I know I had acouple of shocks this winter.
Yeah, because you can go from,let's say, a$50 bill to$250.
Right.
Whereas if you're on the budgetplan and they say$150 a month,
you know that's$150 for 12months.
Right.
Easier to swallow.
SPEAKER_03 (19:20):
How does one find out about these equal payment
plans and budget planning?
Oh, I
SPEAKER_00 (19:24):
can guarantee you
SPEAKER_03 (19:25):
this.
SPEAKER_00 (19:26):
When you get your monthly bill, they probably have
it in there.
Most utilities will notify youmay be eligible for equal
payment plan.
Look at your utility bill orjust simply call your utility.
You can get information at yourutility company.
Call them with your accountnumber.
Say, I'm interested in doing anequal payment plan or equal
(19:47):
budget plan.
And they'll get back to youquickly.
They like knowing that they'rebeing able to help their
customers understand what theirbills are going to be.
SPEAKER_01 (19:56):
The price of food, I know at least like a month ago,
was like going up.
I don't know if it's stabilizedat this point.
And so you've got this issue offood prices and now people
losing their jobs.
I know Montgomery County, we'vegot some great resources for
people who suffer with foodinsecurity.
But in terms of managing thefood budget, do you have any
tips for that?
SPEAKER_00 (20:17):
Well, first I want to make sure we all understand
what food insecurity is asdefined by the government.
Food insecurity is the inabilityto provide adequate food for at
least one household membersometime during the year.
Not the whole house.
One household member sometimeduring the year.
(20:39):
But what we generally see isfamilies that are food insecure.
Yeah.
We see neighborhoods who havefood insecurity.
We have food desert communities.
And food insecurity leads toemotional, physical, and mental
health issues.
SPEAKER_03 (20:56):
Yes, they do.
I saw a lot of that last year.
It
SPEAKER_00 (20:59):
has profound effect on children in school.
If you're not full, you can'tconcentrate.
If you can't concentrate, youcan't perform in school.
Right.
So food insecurity is achallenge.
Going forward, I don't know howmuch more challenging it would
be with the impact of food bankslosing a lot of their food.
Yeah, that's right.
I think the faith-basedcommunities are going to
(21:22):
continue to have to step up moreand more to ensure.
But I also think for families,families need to get back to
being families.
Everybody doesn't have to cookevery day.
But to answer your questionspecifically, let's purchase
those items that have long shelflife.
What are some of those days?
Pasta, beans, rice, nut butter,oats, cooking oil, canned
(21:46):
fruits, vegetables, they allhave long shelf life.
All these products have anywherefrom six months to a year of
shelf life.
And I think if families gatheraround and go back to potluck,
everybody's not responsible forone, the whole meal.
Everybody brings something.
I think that that's a way ofsaving.
I think food insecurity is real.
(22:07):
Our challenge in our country hasnot been food.
It has been the distribution ofthe food.
SPEAKER_01 (22:11):
That's
SPEAKER_00 (22:12):
why they want to use schools.
That's why they use churches.
I've attended several foodinsecurity conferences.
And when I heard that, I said,that's interesting.
They said they have no problemduring the school year.
They can send food home fordinner to the kids in their
backpacks.
The biggest challenge has comein summer because now you have
to get the food to thosechildren.
(22:33):
So distribution has been achallenge.
SPEAKER_03 (22:35):
Well, they learned how to do some of that during
COVID.
There are families that they gotfood to during COVID.
Hopefully we can use lessonslearned for what's happening now
with people losing their jobsand making sure that children
are not going without food.
SPEAKER_00 (22:51):
When you think of food insecurity, let's think
about those individuals who areimpacted the most.
Senior citizens.
Yes.
Because there's been an impacton meals on wheels.
Yes.
Who generally feed our seniors.
If they're removing lunch andbreakfast out of school, then
our children.
So whatever we can do to help.
I've always said if I make extradinner, let's give it to
(23:12):
somebody.
SPEAKER_01 (23:13):
Yeah.
So what about, you know, say afamily is trying to, you know,
make ends meet for a discreteperiod of time and they dip into
a retirement savings as like therainy day fund.
SPEAKER_00 (23:24):
I have a bias there.
My bias is I'm currently 68years old.
I'm retired.
I received money that I paidinto Social Security and from
former employers throughpension.
I will not dip into my 401kbecause my recovery time is not
on my side.
However, if I was 28, I mightborrow against whatever I have
(23:50):
because time is on my side topay it off, recoup it, and still
put money in my retirement.
I'm no longer adding toretirement.
So for a 68-year-old retiredwoman, my answer would be no,
I'm not dipping in.
On the other hand, if I'm 28,even if I'm 40, it may be an
option.
However, if you dip into yourretirement, make sure you
(24:14):
understand the rules.
There may be tax implications.
And you have to figure out, isit worth the tax implications
and the penalties?
Yeah.
So again, none of thesedecisions can be made in a silo.
They need to be made looking intotality of the situation.
Now, if you have regularsavings, then tap into that
first.
(24:35):
My biggest fear was being oldand broke.
When I was working, I alwayssaid my biggest fear is being
old, broke and homeless.
Even if you're 60, you might notwant to do that.
Yeah.
Because I'm thinking personally,if you're like at least under
55, because you still may workanother 15 years.
Yeah.
Okay.
But if you're 60, there comes atime that you say, hey, I might
(24:58):
want to retire, but I may wantto work to 70.
They are moving up to socialsecurity age.
But I think, again, that becomesa personal decision.
Yeah.
But I think you have to look atyour total situation.
I also think that there areresources out there Again, if
you were to bank, most bankshave financial planners.
(25:19):
And they may want you to bankwith them.
But if you were to, a lot ofpeople, retirement money is not
necessarily with the bank thattheir savings and checking
account is with.
But those very banks havecertified financial planners who
can look at your total picture.
SPEAKER_01 (25:33):
Yeah,
SPEAKER_00 (25:33):
and advise.
And they will definitely giveyou at least one courtesy, if
not two courtesy analysis,because they will try to help
you do what's best for you, butalso try to move you to an
instrument that they work on.
SPEAKER_01 (25:44):
Given the kind of economic climate right now, it
seems arguably that we'relooking at a recession coming
around the pike.
How do you prepare for that?
Say, even if you're working,but, you know, prices are going
to, what, probably increase,right?
What is a recession?
SPEAKER_00 (26:00):
In financial terms, a recession is a sustained
period of negative economicgrowth characterized by
significant decline in economicactivity.
often lasting more than a fewmonths and impacting various
sectors like employment,production, and consumer
(26:22):
spending.
So it's a mixture of activitiesthat are happening.
Or not happening.
When people talk about, well,when is the Fed going to lower
the interest rate?
And the Fed says, well, I'm notgoing to lower the interest
rate.
Well, if we go into a recession,they might lower the rate.
Because you have to do somethingto try to stimulate the economy.
SPEAKER_01 (26:42):
But if people are laid off and looking for jobs,
you know, people are going tohusband their funds and they're
not going to spend money.
SPEAKER_00 (26:48):
The ironic thing about when we're in a troubled
economic time, some jobs arelost and some jobs are gained
that are in the same industry.
For example, real estate.
Oh, yeah, because people arelosing their houses.
People are going to lose theirhouses.
So somebody's going to buy them.
So we're going to need to sellthem.
So you see, it's a double whammyin real estate, depending on
(27:08):
where you're at.
There are those jobs or thosetypes of industries.
But what are some of the jobsthat I would think that may be
at risk?
Generally, from a businessperspective, those things that
we call a cost center, where youcost the company money, money
such as marketing, You may notneed to do that much marketing
if you don't have that manypeople to market to.
(27:30):
The auto industry.
The tariffs are making theprices of cars 25% more.
People are going to keep oldercars, but if you're a mechanic,
you're in the auto industry.
Oh, yeah, you're going to makemoney, right?
Right.
Accountants, health careproviders, financial advisors,
auto repair, home maintenancestores.
Oh, because all thedo-it-yourselfers?
(27:53):
Grocery stores, we have to eat.
Bargain and discount stores.
People decide they no longerhave to go to the more expensive
stores.
Thrift stores.
Dollar stores.
Shopping shops, right.
Child care.
I guess cost.
Child care is almost recessionproof.
As long as you have children,you need somebody to care for
(28:15):
your child.
SPEAKER_03 (28:16):
As long as you have children and you have a job.
Right.
SPEAKER_00 (28:20):
But you know one that would shock me when I was
doing some research?
Dating industry.
What, like dating apps?
Like dating, because peopledon't want to be lonely.
They're already diverse.
Yeah.
They want companionship.
Yeah.
Beauty businesses.
People feel like, I'm going tolook good even if I feel bad.
Yeah.
Pet care.
People take care of theiranimals.
(28:41):
They like their children,
SPEAKER_01 (28:42):
okay?
Guilty as
SPEAKER_00 (28:45):
charged.
Guilty as charged.
Courier services.
Think about all the variouscourier services.
Yeah.
So that's what I often say topeople.
Through every storm, there's ablessing.
You have to be able to pivotbecause someone is making a
living.
We have to live.
We have to eat.
(29:06):
But we will cut back on thosethings that are not necessities.
And you must do that.
I always say if your money isfunny and your change is
strange, you need to get a newattitude and find your financial
fortitude.
SPEAKER_02 (29:17):
Oh, love that one.
I'm scared.
SPEAKER_00 (29:20):
And when we do that, we do ourself a favor and we do
others around us a favor.
And then, you know, we've allheard it.
And this is where you probablyhave to really learn how to use
the word no if you never used itbefore.
What comes after no?
A period.
It's a complete sentence.
No.
So on one hand, you say no.
On the other hand, you go find aperson who get paid to say no.
(29:43):
Yes.
SPEAKER_03 (29:44):
I'm leaving here with that line.
SPEAKER_01 (29:49):
Well, that pivoting, that's a really good point.
I think a good ending to what'sbeen a really insightful talk.
If someone wants to reach out toyou, to your consulting firm, is
there a contact information?
SPEAKER_00 (30:02):
Yes, they can call me and leave me a message.
I do call back and you can reachme at 919-641- And just simply
leave a message, your phonenumber or your email, and I will
be in touch with you within 24hours.
SPEAKER_01 (30:20):
Lori Jones-Gibbs, CEO of LJG Consulting with a
wealth of information.
And if you feel as though youare going through some difficult
times because you justexperienced a layoff, you think
a layoff is coming or any otherimpacts that might be affecting
your financial health, Lori'sthe one to talk to.
(30:41):
She'll give it to you straightand she'll give it to you with a
smile and she'll make you laughand all at the same time.
So thank you so much, Lori, forjoining us today.
We really appreciate this greatconversation and all the great
insights that you gave us.
SPEAKER_00 (30:55):
Thank you, Lisa.
Thank you, Glenda.
I feel honored.
Thanks for reaching out.
It's been fun.
It has been.
SPEAKER_03 (31:01):
Thank you.
I just have one more thing tosay.
Remember, find the person whocan say yes.
That's right.
So I might keep telling you, no,just say, I need the person who
can say yes.
Just keep searching until youfind that person.
Right.
Take care, everybody.
SPEAKER_01 (31:18):
Be sure to check us out on our website at
www.2blackmomsatamic.com.
where we hope that you willsubscribe.
You can also hear this and ourother podcasts on Google
Podcasts, Spotify, iHeartRadio,Amazon Audible, and Podchaser.
If you like what you hear, wehope you'll give a great review.
SPEAKER_03 (31:40):
Hey, thanks for joining us today.
This is Glenda.
And this is Lisa.
Two black moms and a mic, andwe're signing off.
Hi, I'm Glenda.
And I'm Lisa.
And we are Two Black Moms and aMic.
Between us, we have six kids,four boys and two girls.
SPEAKER_01 (00:12):
And we're here to talk to you about everything
from diapers to degrees.
Welcome to our podcast.
SPEAKER_03 (00:19):
There's a lot of pressure on the American economy
right now, and changes in thefederal policies are affecting
job security for many folks,young and old.
We have a lot of people who arebeing laid off from their public
or private sector jobs or fearof a future layoff.
If you have been laid offrecently or feel financially
unstable and are not sure whatto do, this episode and this
(00:42):
podcast is for you.
SPEAKER_01 (00:44):
That's right, it is.
Today we're talking to LoriJones-Gibbs, CEO of LJG
Consulting.
Lori is a mortgage, credit, andfinancial coach and author.
A retired banker, she served asSenior Vice President and
Community Development BankingMarketing Manager for the
Carolinas at PNC Bank.
And in this role, she led a teamof financial experts to support
(01:06):
wealth creation throughfinancial education, access to
home mortgages and credit,workforce development
initiatives, and neighborhoodrevitalization.
She's the author of two books,Yes, I Would Marry Him Again,
Wives Salute TheirAfrican-American Husbands, and
her second book, Yes, You'reApproved, The Real Deal About
Getting a Mortgage and Buying aHome.
(01:26):
We want to welcome you today,Lori.
Thank you so much for joining usat a very crucial time.
SPEAKER_00 (01:32):
Well, thank you, Glenda and Lisa, for the
invitation to be part of TwoMoms and a Mic podcast.
SPEAKER_01 (01:38):
Well, it's our pleasure.
I truly appreciate theinvitation.
Absolutely.
Anyone reading the news tonightor in the last week or two knows
that a lot of families are goingthrough a lot of financial
instability.
Government workers are facinglayoffs and the private sector
is following suit with thefederal government and laying
people off.
And it's all in the news.
Just as a bottom line, what doyou tell people who just got
(02:02):
laid off?
How should they go aboutmanaging their financial
situation?
SPEAKER_00 (02:07):
The first thing I would tell them after they get
beyond the emotional shock,because it is a shock and it
does have a psychological impacton individuals when they lose
their job.
But I would also say to them,reassess your goals.
When your life changes, yourgoals and strategies may need to
change as well.
A job loss or layoff may requirea temporary adjustment to your
(02:30):
financial situation, but mayalso open up new opportunities.
Your retirement and savingstarget may change depending on
where you're at in your careerand what age you are.
So it continues to build.
But keeping up with yourlong-term commitments can help
you stay focused and motivatedin the short term.
SPEAKER_01 (02:49):
Yeah, so what you're saying is no matter where you
are financially, either close toretirement or kind of an early
career, There's a pivot that youcan make to kind of buffer the
shock of losing your job.
SPEAKER_00 (03:01):
Yes.
And I also think when peoplelose their jobs, there's some
basic things they need to dobefore they sign anything.
They need to review theiremployment contract because they
may have things they're eligiblefor that they've not thought
about.
Right.
They may also need to not sign atermination agreement because
it's not clear.
Even in at-will states, you havethe right to engage in a
(03:22):
termination.
and seek an attorney whounderstands employment law.
And as my mother would alwayssay, if it doesn't feel right,
find someone that's going tohelp you through it.
Usually in a case like this,it's probably legal counsel.
SPEAKER_01 (03:34):
So in the federal government sector, you've got
federal employees who are eithertaking an early retirement or
forking the road or being laidoff.
A lot of them were associatedwith unions, but I know that
that's kind of problematic rightnow.
Do you have any thoughts aboutthe employee-union relationship
in the face of the layoffs thatwe're seeing?
SPEAKER_00 (03:54):
Well, I think unions are there to do a job, and I
think that they will continue towork for the employees.
I think we're in different timesright now.
I think those are going to bemore challenging than they were
in the past.
I think that our country islooking more toward
privatization.
And I think you have seen somewins and some losses with
unions.
It just really depends.
(04:15):
But I think what everybody cando is they can tap into their
network.
Your network becomes crucial.
But also, you need to tap intoupscaling.
And what do I mean by that?
This is never a better time toexplore your career
possibilities and develop bothnew and old skills.
Consider attending industryevents, joining online forums,
(04:36):
and reconnecting with formercolleagues, online or in person.
One thing COVID did for us, ittaught us that we could work
remotely and be successful atworking remotely.
I also think when you're lookingat your upskills, this gives you
a great time to go startinterviewing again.
If you've not interviewed inyears, this is the best time
(04:57):
before you actually go to a jobinterview.
to tap into your network andwork through some interviewing.
Make sure, what are the newinterviewing skills?
What are the key words they'relooking for today that were not
there 30 years ago when you mayhave gotten your job?
What's key?
And I think those are the veryimportant things that people
need to understand.
(05:17):
Just don't give up on yourself.
SPEAKER_01 (05:19):
Well, the thought of interviewing, especially if
you're sort of late career, isthat can be a little daunting.
SPEAKER_03 (05:25):
Even when you're upskilling and you're moving on
to doing something else, likeyou're truly going through that
whole process of revamping yourresume, making sure that you are
putting in the buzzwords that AIis kicking out.
SPEAKER_01 (05:38):
Yeah, it's a different world now, right?
It's a
SPEAKER_03 (05:40):
different world now.
Where you used to think thatputting everything on there was
important, now not so much.
You know, make sure you have anupdated LinkedIn page.
Although people feel differentlyabout it, but there's a lot of
information you get off ofLinkedIn.
Even if you are not applying tothe numerous jobs that they put
on there, at least you'relearning about the different
(06:01):
things that jobs are lookingfor.
And this goes for all age groupstoo, not just if you were
unfortunately laid off becauseafter 30 years, someone decided
that it was time for you to gowhen you weren't ready to go.
But even if you were just therefor a year, maybe you left
private industry to go into thegovernment.
Now you got to go back and makeconnections with the network you
(06:24):
had before on both ends.
So I agree.
I think those are all valid,good points.
Thank you for sharing that,Lori.
SPEAKER_01 (06:31):
Are there anything, things that sort of the big
monthly payments that we shouldthink about trying to negotiate
with like your mortgage companyor with your landlord?
SPEAKER_00 (06:39):
Yes.
What I like to say to everybodyis you must be proactive.
You must take the steps.
If you know that your salary istaking a hit and you've
revisited your budget and you'reseeing where there are going to
be some challenges in yourbudget, you need to be
proactive.
Now, when I say you need to beproactive, if you have a
mortgage, you need to call yourmortgage servicer.
(06:59):
The key here is finding theperson who gets paid to say yes.
SPEAKER_03 (07:04):
Oh, that's awesome.
I think about that.
And the person that's paid tosay yes.
Not everybody's paid to say
SPEAKER_00 (07:10):
yes.
You know, there are blockers.
They say no, no, no.
That's the level that they'reat.
They're not empowered to sayyes.
You keep going until you get tothe manager.
You write down every name, thedate, the time you spoke with
them.
And then you say yes.
Can I be in contact with you?
Who's going to be the primaryperson handling my account?
(07:30):
You want an individual becauseyou don't want to be lost in the
soup.
Right.
That's a good point.
So now that you have a name, nowyou can start working on the
planning.
I first tell people, sit downand figure out what you think it
is you can pay.
Mortgage companies, they have anumber of options that you might
be eligible for.
(07:51):
But don't agree to somethingthat you're not going to be able
to keep.
What are some of the options?
Lender options include anythingfrom forbearance to repayment
plans to loan modifications,allowing for temporary payments,
and adjustments of your loanterms.
Oftentimes, people don't thinkabout that.
Lenders are not in the businessof foreclosing.
(08:13):
They do not want to foreclose.
SPEAKER_03 (08:15):
That is so true.
I worked for Prudential MortgageCompany many years back as an
operations analyst, putting insoftware to help them understand
What I learned doing that wasthey really don't want to
foreclose on you.
They give you a long period oftime before they actually
foreclose.
And there was a reason for that.
Continue teaching us, Lori.
SPEAKER_00 (08:36):
One of the first things one might want to
consider is what is called aforbearance.
A forbearance allows borrowersto temporarily pause or reduce
their mortgage payment for aagreed upon period that's been
established by them and thelender.
Now, you ultimately are going tohave to pay it back.
But this is where It can begood.
Any missed payments would eitherbe paid in a lump sum or will be
(08:59):
paid at the end of the loan.
They add it to the term.
So let's say you had a 15 yearmortgage and you're at the 12th
year now and all of a sudden youget laid off and you really want
to keep your house.
And let's say your monthlypayments are going to probably
be in the rear of$20,000.
Don't take that$20,000 andwhatever your monthly payment
(09:20):
is.
Divide that and they can add itto the end of the mortgage.
So instead of it being 15 years,it might be 15 and a half years,
depending on what the monthlypayment is.
Now, you want to also do thatbecause many people have their
taxes and their insuranceescrow.
This is why you must talk toyour lender.
The lender does not want you notpaying your insurance because
(09:42):
they don't want their propertyat risk of loss.
Right.
But you don't want a higherpremium insurance on it either.
So if you talk to them about itand they include it in your
monthly payment like they'vebeen collecting it, it's going
to be better for you to do itthat way.
So forbearance is an option.
Repayment is an option.
It's a plan to resume regularmonthly payments while also
(10:03):
paying off a portion of yourpast due amount each month until
the loan is current.
Think about that.
You might be out of work for awhile, but you get your job
back.
And now you're earning enoughmoney not only to pay what you
owe, but add an extra$500 tocatch up your arrears.
Explore your options and trulyfigure out what's best for you.
(10:24):
What may be best for you, Lisa,may not be what's best for
Glenda.
It becomes a personal decisionbased on your personal financial
situation.
And if
SPEAKER_01 (10:31):
you're able to negotiate an alternative payment
arrangement on your mortgage,for example, that's not going to
affect your credit rating,
SPEAKER_00 (10:39):
right?
That's why you have to beproactive with the lender.
If you're very proactive, Ioften tell people, go to the
post box and get the mail.
Just because you're not goingthere doesn't mean you're not
late.
But if you're proactive, it'sgoing to be better for you to be
proactive.
Loan modification.
Some people just simply need aloan modification.
Well, would they adjust theoriginal terms of the loan that
(11:01):
makes payments more affordable?
That's really great if you had ahigher interest rate loan and
the rates are lower.
If they can modify it simply forinterest rate, reducing it
because you can pay that.
Think about
SPEAKER_01 (11:11):
that.
So that would be, for example, achange in interest.
That you just said.
Or could you lengthen the loanif you've got a 15-year and you
want to take it to 20?
SPEAKER_00 (11:20):
Right.
Those are all things that can bediscussed in a modification, a
loan modification.
Again, refinancing is justreplacing your current mortgage
with a new one with differentterms, potentially making the
payments more manageable.
But you see, these are thingsthat lenders have.
SPEAKER_03 (11:35):
They don't advertise that they have these things.
SPEAKER_00 (11:38):
Because consumers don't ask.
People heard of FHA and theyheard of mortgage insurance.
Well, if it's with you for thelife of the loan until you
notify the lender, then I'm at78% loan to value.
Why am I paying this mortgageinsurance?
If you don't know, you don'tknow.
SPEAKER_03 (11:55):
Lenders make money off of those loans.
They package them and they sellthem as securities.
So listen to what lawyers tellyou.
SPEAKER_00 (12:03):
Then there's always the short sale.
Selling the property for lessthan the outstanding loan
balance with the lender'spermission.
Allowing the borrower to avoidforeclosures.
This is a tool you use if you'rereally at the point that you
know there's no way you can saveyour home.
But you want to do everything inyour power to save your credit.
You want to do everything youpossibly do you can do to save
your credit.
(12:23):
Because what you're doing there,you're simply saying, hey, this
house might be worth$500,000.
I can only get$350,000 for it.
Mr.
Lindo, are you going to let melet it go?
Now, let me caution you here.
There may be a deficit judgment.
that they place on it, or theymay give you a 1099 for the
difference.
That now becomes a taxobligation.
So whatever agreement you getto, don't be over anxious.
(12:47):
Do a little due diligence.
Don't agree to do anything untilyou know this is what you can
do.
And most of the lenders aregoing to work with you.
Because again, just as Glendasaid, they're not in the
business of foreclosing.
Let me kill that myth right now.
They are not in the business offoreclosing.
Think about it.
They have packaged those loansand sold them on the market, and
(13:09):
they're expecting a return.
Well, if they belly up, theystill have to pay those
investors what they sold thoseloans to them for.
So it's not as simple as saying,ah, they can do it, but they
also have to protect.
If you're a financialinstitution, you generally have
stockholders, and they'veinvested in it.
D in lieu of foreclosure whereyou voluntarily transfer the
program back to the lender inexchange for release of the
(13:30):
mortgage debt avoidingforeclosure.
I always tell people that Ithink that that's one, if you
know that you get ready to leavea certain community or leave a
certain state and you've tried,that might be your option.
SPEAKER_01 (13:42):
Who could you talk to about like your many options
and how to decide what to do?
You call the servicingdepartment now.
SPEAKER_00 (13:48):
How do they know what's best for you?
Well, when you get to the personwho knows how to say yes.
SPEAKER_03 (13:55):
That's the one we got to
SPEAKER_00 (13:55):
keep.
You will get there.
But when you think of the D inlieu of foreclosure, if you are
moving to avoid foreclosure, youknow that you're going to move.
The thing that hurt me most in2008 when we had the housing
crisis, and I remember thehousing crisis, when you saw
people furniture and stuff infront of their house.
(14:16):
Not every mortgage is for everyconsumer.
And in 2008, we had some productout there that was not for every
consumer, which kind of createdthat hardship.
I'm a traditionalist.
I tell my kids, get your 30-yearfixed rate.
If you have extra money to payon the principal, do it.
But at least you've taken it outfor the longest possible pay.
(14:36):
Yeah, you'd always pay it early.
You can always pay it early.
You can always make an extraprincipal payment.
You can always talk to Linda andsee if you can do a monthly
payment.
Things work.
Yeah.
And then this last one is just agrace period.
But a grace period really isjust most of the mortgages are
late after 15 days.
Most lenders nowadays will giveyou a one-day grace period and
(14:58):
not charge you a late thing.
But if you get not because youask not, you have to ask for
these things.
You need to repeat that.
You get not because you ask not.
SPEAKER_01 (15:08):
Yeah.
Hiding under a shell is notgoing to make things better for
you.
No.
SPEAKER_00 (15:12):
And then, you know, there's always the option of
saying, and depending on whereyou're at, could you pay the
interest only for a while?
This is America.
Everything is negotiable.
Doesn't mean you're going to wina negotiation, but at least
start the negotiation.
SPEAKER_03 (15:26):
Those are all excellent points and taking me
back to a period of time wheremortgage was my life for a
minute.
There I was learning about itand all the ins and outs and how
they make all the money off ofus.
So thanks for sharing that.
Thank you.
SPEAKER_01 (15:39):
What about if you're a renter, though?
You know, the same factors don'tapply, but the principles still
apply, right?
Well, you have to
SPEAKER_00 (15:45):
notify your landlord.
And hopefully you've had a goodrelationship with your landlord.
You've been a good tenant.
You've just run on hard times,right?
Now, landlords who have had goodtenants generally will work with
it.
But we're in a different timeright now.
We don't know how many tenantsthat landlord may have that's
having these same challenges.
(16:07):
So, but I would say, Call thelandlord, request an extension,
just say, hey, I'll pay the latefee, but I know the next two
months I'm going to have a hardtime.
I'm trying to find me anotherjob, but I promise you I will
pay you.
Most landlords will try to workwith you if they can.
And guess what the landlord hason you if you don't pay them?
They have your social securitynumber.
They have all your informationthat they can report you to the
(16:30):
credit bureau and they can takeyou to small claims court to get
their money.
But be honest, bestraightforward, and be clear on
what it is you need.
Propose a plan.
SPEAKER_01 (16:40):
Yeah, that's a thought, right?
SPEAKER_00 (16:41):
Propose your own plan.
If you really know, send awritten out, sit down, write out
your proposed plan to thelandlord.
That's showing good faith.
That's showing that you'reserious about what your current
financial situation is, but youknow you need a roof over your
head.
SPEAKER_03 (16:56):
That's a big deal, especially with renters.
So many people are renting now.
Also, it depends on, I think,the state you're in.
Like if you're in New York City,I don't know what landlords are
interested in New York.
That's all I'm going to say.
SPEAKER_00 (17:11):
Your point is good because in some states are
tenant friendly.
And when I say tenant friendly,it can take you six months to a
year to evict a tenant.
And generally, tenants knowtheir rights.
So that way, if a tenant comesto you in good faith saying,
hey, I know I'm running intothis problem.
I've been a landlord.
The good ones, you don't have aproblem with.
(17:32):
The bad ones you find out by thesecond month.
Even if nothing's happened.
It's kind of like the engineersalways tell you if you buy an
appliance, you'll find out ifit's a linen within 30 days.
If it passed the 90 days, yougot a good one.
You have a tenant with a getover mentality, you're going to
know within two months.
Why get over two months?
Because you probably requiredthe first month in the second
(17:54):
month.
So come the third month, You'llknow.
SPEAKER_03 (17:59):
Okay, so even with houses, mortgages, rental
property, we all have utilities.
So how do we handle utilities?
SPEAKER_01 (18:07):
Yeah, the gas bills have been really high.
I don't know if you all havenoticed.
It was really cold, but peoplehave also been complaining
about...
Well, I always say,
SPEAKER_00 (18:15):
after you've been in your home for a year, both the
gas company and electric companycan give you what they call an
equal payment plan.
Because what they do, theyanalyze...
your usage for that year.
And then they can sing and workwith you and give you a
proposal.
So they may say to you, and thegood thing about this, it's not
fluctuating throughout the year.
Not to have these surprisebills.
(18:37):
No surprise bills.
SPEAKER_02 (18:38):
Do they also call that budget planning too?
SPEAKER_00 (18:40):
Budget planning or even payment planning, depending
on the utility.
But they do that.
And then generally on theanniversary, they send you a
notice and they say, okay, youowe us$70 or you have 70 plus.
Do you want us to apply it andkeep your payment the same?
But the good thing about theequal payment plan, the budget
(19:00):
plan is each month that paymentis going to be the same amount.
So you're not dealing with anyshock.
Yeah, because I know I had acouple of shocks this winter.
Yeah, because you can go from,let's say, a$50 bill to$250.
Right.
Whereas if you're on the budgetplan and they say$150 a month,
you know that's$150 for 12months.
Right.
Easier to swallow.
SPEAKER_03 (19:20):
How does one find out about these equal payment
plans and budget planning?
Oh, I
SPEAKER_00 (19:24):
can guarantee you
SPEAKER_03 (19:25):
this.
SPEAKER_00 (19:26):
When you get your monthly bill, they probably have
it in there.
Most utilities will notify youmay be eligible for equal
payment plan.
Look at your utility bill orjust simply call your utility.
You can get information at yourutility company.
Call them with your accountnumber.
Say, I'm interested in doing anequal payment plan or equal
(19:47):
budget plan.
And they'll get back to youquickly.
They like knowing that they'rebeing able to help their
customers understand what theirbills are going to be.
SPEAKER_01 (19:56):
The price of food, I know at least like a month ago,
was like going up.
I don't know if it's stabilizedat this point.
And so you've got this issue offood prices and now people
losing their jobs.
I know Montgomery County, we'vegot some great resources for
people who suffer with foodinsecurity.
But in terms of managing thefood budget, do you have any
tips for that?
SPEAKER_00 (20:17):
Well, first I want to make sure we all understand
what food insecurity is asdefined by the government.
Food insecurity is the inabilityto provide adequate food for at
least one household membersometime during the year.
Not the whole house.
One household member sometimeduring the year.
(20:39):
But what we generally see isfamilies that are food insecure.
Yeah.
We see neighborhoods who havefood insecurity.
We have food desert communities.
And food insecurity leads toemotional, physical, and mental
health issues.
SPEAKER_03 (20:56):
Yes, they do.
I saw a lot of that last year.
It
SPEAKER_00 (20:59):
has profound effect on children in school.
If you're not full, you can'tconcentrate.
If you can't concentrate, youcan't perform in school.
Right.
So food insecurity is achallenge.
Going forward, I don't know howmuch more challenging it would
be with the impact of food bankslosing a lot of their food.
Yeah, that's right.
I think the faith-basedcommunities are going to
(21:22):
continue to have to step up moreand more to ensure.
But I also think for families,families need to get back to
being families.
Everybody doesn't have to cookevery day.
But to answer your questionspecifically, let's purchase
those items that have long shelflife.
What are some of those days?
Pasta, beans, rice, nut butter,oats, cooking oil, canned
(21:46):
fruits, vegetables, they allhave long shelf life.
All these products have anywherefrom six months to a year of
shelf life.
And I think if families gatheraround and go back to potluck,
everybody's not responsible forone, the whole meal.
Everybody brings something.
I think that that's a way ofsaving.
I think food insecurity is real.
(22:07):
Our challenge in our country hasnot been food.
It has been the distribution ofthe food.
SPEAKER_01 (22:11):
That's
SPEAKER_00 (22:12):
why they want to use schools.
That's why they use churches.
I've attended several foodinsecurity conferences.
And when I heard that, I said,that's interesting.
They said they have no problemduring the school year.
They can send food home fordinner to the kids in their
backpacks.
The biggest challenge has comein summer because now you have
to get the food to thosechildren.
(22:33):
So distribution has been achallenge.
SPEAKER_03 (22:35):
Well, they learned how to do some of that during
COVID.
There are families that they gotfood to during COVID.
Hopefully we can use lessonslearned for what's happening now
with people losing their jobsand making sure that children
are not going without food.
SPEAKER_00 (22:51):
When you think of food insecurity, let's think
about those individuals who areimpacted the most.
Senior citizens.
Yes.
Because there's been an impacton meals on wheels.
Yes.
Who generally feed our seniors.
If they're removing lunch andbreakfast out of school, then
our children.
So whatever we can do to help.
I've always said if I make extradinner, let's give it to
(23:12):
somebody.
SPEAKER_01 (23:13):
Yeah.
So what about, you know, say afamily is trying to, you know,
make ends meet for a discreteperiod of time and they dip into
a retirement savings as like therainy day fund.
SPEAKER_00 (23:24):
I have a bias there.
My bias is I'm currently 68years old.
I'm retired.
I received money that I paidinto Social Security and from
former employers throughpension.
I will not dip into my 401kbecause my recovery time is not
on my side.
However, if I was 28, I mightborrow against whatever I have
(23:50):
because time is on my side topay it off, recoup it, and still
put money in my retirement.
I'm no longer adding toretirement.
So for a 68-year-old retiredwoman, my answer would be no,
I'm not dipping in.
On the other hand, if I'm 28,even if I'm 40, it may be an
option.
However, if you dip into yourretirement, make sure you
(24:14):
understand the rules.
There may be tax implications.
And you have to figure out, isit worth the tax implications
and the penalties?
Yeah.
So again, none of thesedecisions can be made in a silo.
They need to be made looking intotality of the situation.
Now, if you have regularsavings, then tap into that
first.
(24:35):
My biggest fear was being oldand broke.
When I was working, I alwayssaid my biggest fear is being
old, broke and homeless.
Even if you're 60, you might notwant to do that.
Yeah.
Because I'm thinking personally,if you're like at least under
55, because you still may workanother 15 years.
Yeah.
Okay.
But if you're 60, there comes atime that you say, hey, I might
(24:58):
want to retire, but I may wantto work to 70.
They are moving up to socialsecurity age.
But I think, again, that becomesa personal decision.
Yeah.
But I think you have to look atyour total situation.
I also think that there areresources out there Again, if
you were to bank, most bankshave financial planners.
(25:19):
And they may want you to bankwith them.
But if you were to, a lot ofpeople, retirement money is not
necessarily with the bank thattheir savings and checking
account is with.
But those very banks havecertified financial planners who
can look at your total picture.
SPEAKER_01 (25:33):
Yeah,
SPEAKER_00 (25:33):
and advise.
And they will definitely giveyou at least one courtesy, if
not two courtesy analysis,because they will try to help
you do what's best for you, butalso try to move you to an
instrument that they work on.
SPEAKER_01 (25:44):
Given the kind of economic climate right now, it
seems arguably that we'relooking at a recession coming
around the pike.
How do you prepare for that?
Say, even if you're working,but, you know, prices are going
to, what, probably increase,right?
What is a recession?
SPEAKER_00 (26:00):
In financial terms, a recession is a sustained
period of negative economicgrowth characterized by
significant decline in economicactivity.
often lasting more than a fewmonths and impacting various
sectors like employment,production, and consumer
(26:22):
spending.
So it's a mixture of activitiesthat are happening.
Or not happening.
When people talk about, well,when is the Fed going to lower
the interest rate?
And the Fed says, well, I'm notgoing to lower the interest
rate.
Well, if we go into a recession,they might lower the rate.
Because you have to do somethingto try to stimulate the economy.
SPEAKER_01 (26:42):
But if people are laid off and looking for jobs,
you know, people are going tohusband their funds and they're
not going to spend money.
SPEAKER_00 (26:48):
The ironic thing about when we're in a troubled
economic time, some jobs arelost and some jobs are gained
that are in the same industry.
For example, real estate.
Oh, yeah, because people arelosing their houses.
People are going to lose theirhouses.
So somebody's going to buy them.
So we're going to need to sellthem.
So you see, it's a double whammyin real estate, depending on
(27:08):
where you're at.
There are those jobs or thosetypes of industries.
But what are some of the jobsthat I would think that may be
at risk?
Generally, from a businessperspective, those things that
we call a cost center, where youcost the company money, money
such as marketing, You may notneed to do that much marketing
if you don't have that manypeople to market to.
(27:30):
The auto industry.
The tariffs are making theprices of cars 25% more.
People are going to keep oldercars, but if you're a mechanic,
you're in the auto industry.
Oh, yeah, you're going to makemoney, right?
Right.
Accountants, health careproviders, financial advisors,
auto repair, home maintenancestores.
Oh, because all thedo-it-yourselfers?
(27:53):
Grocery stores, we have to eat.
Bargain and discount stores.
People decide they no longerhave to go to the more expensive
stores.
Thrift stores.
Dollar stores.
Shopping shops, right.
Child care.
I guess cost.
Child care is almost recessionproof.
As long as you have children,you need somebody to care for
(28:15):
your child.
SPEAKER_03 (28:16):
As long as you have children and you have a job.
Right.
SPEAKER_00 (28:20):
But you know one that would shock me when I was
doing some research?
Dating industry.
What, like dating apps?
Like dating, because peopledon't want to be lonely.
They're already diverse.
Yeah.
They want companionship.
Yeah.
Beauty businesses.
People feel like, I'm going tolook good even if I feel bad.
Yeah.
Pet care.
People take care of theiranimals.
(28:41):
They like their children,
SPEAKER_01 (28:42):
okay?
Guilty as
SPEAKER_00 (28:45):
charged.
Guilty as charged.
Courier services.
Think about all the variouscourier services.
Yeah.
So that's what I often say topeople.
Through every storm, there's ablessing.
You have to be able to pivotbecause someone is making a
living.
We have to live.
We have to eat.
(29:06):
But we will cut back on thosethings that are not necessities.
And you must do that.
I always say if your money isfunny and your change is
strange, you need to get a newattitude and find your financial
fortitude.
SPEAKER_02 (29:17):
Oh, love that one.
I'm scared.
SPEAKER_00 (29:20):
And when we do that, we do ourself a favor and we do
others around us a favor.
And then, you know, we've allheard it.
And this is where you probablyhave to really learn how to use
the word no if you never used itbefore.
What comes after no?
A period.
It's a complete sentence.
No.
So on one hand, you say no.
On the other hand, you go find aperson who get paid to say no.
(29:43):
Yes.
SPEAKER_03 (29:44):
I'm leaving here with that line.
SPEAKER_01 (29:49):
Well, that pivoting, that's a really good point.
I think a good ending to what'sbeen a really insightful talk.
If someone wants to reach out toyou, to your consulting firm, is
there a contact information?
SPEAKER_00 (30:02):
Yes, they can call me and leave me a message.
I do call back and you can reachme at 919-641- And just simply
leave a message, your phonenumber or your email, and I will
be in touch with you within 24hours.
SPEAKER_01 (30:20):
Lori Jones-Gibbs, CEO of LJG Consulting with a
wealth of information.
And if you feel as though youare going through some difficult
times because you justexperienced a layoff, you think
a layoff is coming or any otherimpacts that might be affecting
your financial health, Lori'sthe one to talk to.
(30:41):
She'll give it to you straightand she'll give it to you with a
smile and she'll make you laughand all at the same time.
So thank you so much, Lori, forjoining us today.
We really appreciate this greatconversation and all the great
insights that you gave us.
SPEAKER_00 (30:55):
Thank you, Lisa.
Thank you, Glenda.
I feel honored.
Thanks for reaching out.
It's been fun.
It has been.
SPEAKER_03 (31:01):
Thank you.
I just have one more thing tosay.
Remember, find the person whocan say yes.
That's right.
So I might keep telling you, no,just say, I need the person who
can say yes.
Just keep searching until youfind that person.
Right.
Take care, everybody.
SPEAKER_01 (31:18):
Be sure to check us out on our website at
www.2blackmomsatamic.com.
where we hope that you willsubscribe.
You can also hear this and ourother podcasts on Google
Podcasts, Spotify, iHeartRadio,Amazon Audible, and Podchaser.
If you like what you hear, wehope you'll give a great review.
SPEAKER_03 (31:40):
Hey, thanks for joining us today.
This is Glenda.
And this is Lisa.
Two black moms and a mic, andwe're signing off.
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