(ThySistas.com) The malls are closed, online shopping sales have increased, student loan interest rates have been postponed until later on this year and this pandemic is still present across the globe. Now is the perfect time to save money by building your emergency funds. Most Americans do not have an emergency fund for multiple reasons and are known to create more debt to pay for emergencies. But what if you had cash reserved to pay for that flat tire or broken water heater and not have to create debt to fix it? It’ll be an awesome feeling, I can ensure you!
Most financial gurus suggest at minimum, having $1,000 in an easily accessible savings account for emergency funds. Then, in an external account separate from your checking account, you should have emergency funds for 3-6 months of income that you will need in case of a major crisis such as unemployment. Typically this account is not easily accessible meaning it may take 2-3 business days for you to have access to the funds. For example, your Chase savings account is connected to your Chase checking account so you can easily withdraw money as needed. Your Goldman Sachs savings account where your 3-6 months savings is funded, will take a few days to transfer funds into your checking account.
You may be wondering, how in the world can I save money during this pandemic while my income isn’t stable or I’m at risk for possibly losing my job? Below are three ways that you can build your emergency funds during a pandemic:
Cut off subscriptions that you’re not using
Get a copy of last month’s bank statement and comb through it and make a list of all of your subscriptions that you currently are paying for. Out of that list, ask yourself, what subscriptions do you not need at this time, forgot you were even paying for and cancel them immediately. Add those numbers up and monthly, put that money you would have been spending on subscriptions, into your savings accounts.
Sell items in your home
Ladies, those clothes, jewelry and accessories that you’ve never worn or only worn once, sell them! Apps such Poshmark, OfferUp and even Facebook Marketplace, allows you to sell items in your home safely, during this pandemic. The money you earn from your sells, can be deposited into your savings accounts. This is passive income that you can literally make in your sleep and it doesn’t require any hard labor. You just upload pictures of your items, name your price and ship items once you have a buyer or exchange items at a safe location.
Automate deposits
If you’re naturally a spender like I once was, the best way for you to save money during this pandemic is to have funds automatically deposited from your paycheck into your savings. It doesn’t have to be a large amount of money automatically saved each paycheck, you can start with something as small as $10 to help you get started. You can always adjust the amount you want deposited with a few clicks using online banking. The point is to create a habit of saving money.
Emergencies happen, no one is exempt from them so it is better to be financially prepared for them as they arise. You can save a small or large amount of money and in various ways without going into more debt every time there’s an emergency.
Staff Writer; Felicia T. Simpson
One may also connect with this sister online over at; FTSimpson.com.