COVID-19 stresses importance of emergency funds
TOPEKA, Kan. (WIBW) - The ongoing COVID-19 pandemic has highlighted the importance of keeping a pile of emergency funds.
TopCashback.com, a U.S. based cashback site, says almost 31% of Americans have dipped into their emergency saving over the past six months due to the ongoing COVID-19 pandemic.
The cashback site says it surveyed 906 adults all aged over 18 to find out more about Americans’ financial feelings.
TopCashback says it found that 61% of Americans felt financially confident, however, 34% still occasionally stress over money.
The site says it also found that 53% of the U.S. has an emergency fund, and 61% say their emergency stockpile could cover at least six months of living expenses. It says the COVID-19 pandemic has 31% of Americans dipping into these emergency funds.
In response to the COVID-19 pandemic, TopCashback’s Personal Finance Expert, Rebecca Gramuglia has the following tips:
- Revisit your budget. If you find yourself overspending or using your emergency savings, try implementing the 50/20/30 rule. Make sure your adjusted budget covers essentials, financial priorities and all of your wants. This rule requires you to spend only up to 50 percent of your after-tax income on essentials, such as housing and food; 20 percent on financial priorities such as debt repayments and savings; and 30 percent on your wants; such as splurges. However, if you find yourself needing to save more, consider switching the latter two percentages. Another way to view the 50/20/30 rule is as the Needs/Savings/Wants rule.
- Be mindful of spending habits. While many are still doing a large majority of shopping online, be sure to look for ways to save. If you find yourself paying for shipping, see if you can score in-store pickup to eliminate extra costs. Plus, be on the lookout for ways to save by shopping sales, using coupons and shopping through a cashback site like TopCashback.com to earn a percentage of your purchase back in cashback.
- Look for ways to lower your bills. Do a subscription cleanse or deactivate any duplicate accounts to cut costs and save money. Subscriptions include newspapers, streaming, food services and more. It’s easy to sign up for these services during a free trial, but sometimes we forget to opt out before paying. And don’t forget to review all additional expenses like cable and/or internet to negotiate to lower your bill. Any money you “save” by cutting costs can go towards an emergency savings fund.
For more information on the study visit TopCashback.com.
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