Emergency Fund Building
Mon Jul 27 2020 04:00:00 GMT+0000 (Coordinated Universal Time)
As soon as you begin earning income, smart spending becomes a MUST. It may be the very thing that stands between giving up that apartment, car, or not having extra funds for another quarantine supply. In order to get started on your savings and emergency fund plan, returning to the basics is the way to go!
Here are the first 3 steps we recommend to begin spending and saving smarter during quarantine:
1. Re-evaluate your budget and cut costs
- Grocery shop 1-2 times a month and cut out all fast-foods. Not only will you be eating healthier, but hundreds of dollars will be saved from unnecessary food spending.
- Cancel any un-needed subscriptions. Be honest with yourself on whether it is something you absolutely need to spend money on.
- Live within your means! It is okay to like nice material things, but these purchases can get us in trouble if we aren’t being smart and prioritizing.
2. SAVE, SAVE, SAVE!!!!
- Set aside a manageable portion of income every check you receive into an untouched savings account. We recommend saving at least 30%.
- Start with a one-year emergency savings account and automate a percentage of income to this account each check.
3. Be Accountable
- Download a reliable strategic financial app (Mint App, Budget Tracker and Planner) to help you track your spending habits from your phone.
- Link your bank accounts and keep track of all your bills and other spending.
- Create a budget and utilize the app’s tailored tips made just for you!
- Turn on reminders and notifications that hold you accountable to your created budget and other prioritized bills.
- Talk with your VAAS Pro Consultant.
The COVID-19 Pandemic followed by the economic downturn, has and still is affecting the world on a global scale making 2020 one of the worst depressions the U.S. have ever faced. More businesses than ever have closed, unemployment claims in the U.S. have now surpassed a stunning 16 million, and the percentage of people out of work are at rates like we have never seen.
So what do you do during these despairing times to make sure you and your loved ones come out on top? Start building your emergency fund, and practice strategic saving habits because saving is better than spending.
Emergency Fund Building can be beneficial to all and serve as a safety net that will come in handy during the worst times. COVID-19 proved that a lot of us had no back-up plan and were not well-equipped for an economic downturn. Understanding this, we want to ensure we give you all the tools to save and build. Keep reading for a few pointers and resources that can help you kickstart your savings and emergency fund!