Building savings during a pandemic

Building savings during a pandemic
Don’t have a savings account? It’s never too late to start building it up. (Source: Pixabay)

RICHMOND, Va. (WWBT) -70% of American say their household income has been negatively impacted by the pandemic. That’s according to a new survey from our partners at the financial website Nerdwallet.

One of the most important things you can do right now is to really look at your budget. Write everything you spend money on down on paper. Or type it into a computer screen. But look at it and account for EVERY dollar.

Look for things you can cut back on-- and revisit your budget every two months or so. We’re staying at home more-- spending has changed-- and it could change again in another month. You want to stay on top of your money habits right now.

And Kim Palmer- a personal finance expert with NerdWallet says one of your top priorities-- once you’re able-- should be to replenish or restart that emergency fund. “If you can transfer some of that money you’ve previously been spending on categories like travel and restaurants into savings it can be a very helpful cushion,” says Palmer.

Start setting aside even $20 a week or every two weeks if you can. It will slowly add up to an emergency fund.

Also, make small and realistic goals. Get $500 into an emergency fund.. Then aim for $750. Once you get that amount-- try for $1,000. Don’t make a goal that feels hard to reach. Each time you get there-- it’s a small victory that motivates you to do more.

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