The current pandemic may be beyond your control, but you can control how you respond and prepare financially. Having some money saving tips under your belt could be a lifesaver so that that when worse comes to worst, you’ll know how to survive.
An emergency fund is the money you’ve saved up for the sole purpose of helping you get through financial hardships.
When the economy starts to dip, our jobs and our income can be put in jeopardy, and it’s for this reason that maintaining an emergency fund is crucial.
Whether your hours have been cut back, you’ve lost your job, your business isn’t making any money, or you made some poor financial decisions, emergency savings will give you a safety net to fall back on so you can ride the wave and emerge from the recession back on your feet.
If it’s possible, try to save about 3 to 6 months’ worth of your wages, so when the economy is down and money is tight, you won’t have to turn to borrowing.
Tough times always last longer than you would think, so debts from these times are always greater than anticipated. Since most people are used to living on their entire paycheque, they don’t have anything extra to repay this debt. So, they have to either increase their income or significantly downsize their lifestyle to afford repaying the debt at their current income level.
If you haven’t started saving already, call us on 0701 700 700 or email on talk2us@abcthebank.com. The ABC Pure Savers account not only disciplines you to a saving culture but earns you competitively high interest while at it.
Source: “Tips to Survive a Recession.” www.mymoneycoach.ca/blog/money-saving-tips-how-to-survive-recession.html