If COVID-19 hasn't affected your income, now is the time to save, experts say

Posted at 5:47 AM, Sep 21, 2020
and last updated 2020-09-21 07:12:03-04

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.