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Essential Money Tips for Surviving the ‘Pandemic Spiral’

GOBankingRates Logo By Gabrielle Olya of GOBankingRates | Slide 2 of 11: Yong said it’s easy to fall into a “normality trap” when dealing with a crisis, as people want to return to “normal” ASAP rather than facing the uncertain world we are now in. Put into financial terms, you may be maintaining your normal spending behaviors if you’re not one of the millions of Americans who have lost their jobs due to COVID-19. But just because you haven’t lost your job doesn’t mean that you won’t, as the economy is still rocky for many sectors. Given this uncertainty, it’s important to prioritize your emergency savings. “As the COVID-19 pandemic makes clear, financial stressors can strike with minimal warning,” said Greg Klingler, CFP, ChFEBC, director of wealth management for the Government Employees’ Benefit Association. “An emergency fund is a crucial part of your budget, and you may need to contribute a bit less to your savings (retirement or debt payments) and/or wants (entertainment, clothes, etc.) to establish and fund it. All Americans should maintain three to six months of expenses in liquid cash.” Prep Now: Build Your Emergency Fund

Prioritize Emergency Savings

Yong said it’s easy to fall into a “normality trap” when dealing with a crisis, as people want to return to “normal” ASAP rather than facing the uncertain world we are now in. Put into financial terms, you may be maintaining your normal spending behaviors if you’re not one of the millions of Americans who have lost their jobs due to COVID-19. But just because you haven’t lost your job doesn’t mean that you won’t, as the economy is still rocky for many sectors. Given this uncertainty, it’s important to prioritize your emergency savings.

“As the COVID-19 pandemic makes clear, financial stressors can strike with minimal warning,” said Greg Klingler, CFP, ChFEBC, director of wealth management for the Government Employees’ Benefit Association. “An emergency fund is a crucial part of your budget, and you may need to contribute a bit less to your savings (retirement or debt payments) and/or wants (entertainment, clothes, etc.) to establish and fund it. All Americans should maintain three to six months of expenses in liquid cash.”

Prep Now: Build Your Emergency Fund

© Keith Wilson / Flickr.com

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