Tens of millions of Americans lost jobs during the pandemic. It's a reminder that a person's financial situation can change in an instant.
For those still employed, credit-reporting company Experian says it's a crucial time to save your money and set yourself up for long-term financial success.
There are several ways to do this:
- Create an emergency fund
- Get started by developing a household budget and setting monthly savings goals.
- Save the cash you would've spent on movies and restaurants and cancel an unused gym membership.
- Save for retirement
- Focus on paying down mortgages and other debts including student loans and credit cards to free up cash you can put away.
- Learn about and join your employer's 401k plan.
- Open an IRA account
- Set aside money for a down payment on a home
- Put money into a savings account specifically for a down payment on a home. Do this monthly.
- Put off vacations until you have enough cash for a down payment.
- Take a side-gig for extra income.
- Don't use savings for major purchases
- Open a specific account for the purchase.
- Set up automatic transfers from checking to savings accounts.
- Avoid credit card debt
- Use credit cards for purchases that can be paid off each month.
- Work with credit card companies to lower interest rates.
Click HERE for other ways to save money from Experian.