Looking for a bright spot in the middle of the COVID-19 pandemic? While most of the personal finance-related news has been dismal, there is one particular bright spot that we should celebrate: more people in the US are saving money for a rainy day.
There were plenty of alarmist headlines on the savings rates in the US pre-pandemic. Thankfully, whether out of necessity or because of the wake-up call the pandemic has provided, one sign of our collective resilience has been an increase in the savings rates of many people in the US. Whether that comes from saving all or a portion of your Economic Impact Payment, saving money that would normally be spent eating out or on entertainment, or saving some of your increased unemployment benefits, there are all sorts of reasons to make automatic savings a part of your life right now.
The pandemic has created countless opportunities for behavior change. Why not consider making a savings habit? Most employers make automatic savings incredibly easy these days through payroll deduction. If your employer already automatically deposits your paycheck into your checking account, ask if you can split a portion into a savings account to begin growing your emergency fund. Start with something manageable, like $25 per paycheck. Get a raise? Up your emergency savings, too! Get a windfall? Have some fun, but devote some of it to your emergency fund.
Don’t forget that at Multipli, you can have multiple sub-savings accounts! So, in addition to your emergency fund, why not get a sub-account labeled “car repairs” so that you’re ready next time the car breaks down? Home repair? Vacation fund? Get started, and watch your financial cushion grow!
If you’re looking for ways to automate your savings, give us a call to ask about setting up payroll deduction. Trying to find ways to save? Get in touch with one of our certified financial counselors by emailing us at email@example.com