5 Steps To Take Now If You’ve Spent All Your Pandemic Savings
The pandemic-era stimulus and financial assistance created high levels of excess savings for Americans, but a report by the Federal Reserve Bank of San Francisco indicates that those savings have been totally depleted as of March 2024. If you’re one of many Americans looking to rebuild their savings, here are some tips to get you going ASAP.
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1. Assess Your Current Financial Situation
The first thing you’ll need to do is assess your financial situation. See where you are currently and what needs to be fixed. This might include:
Reviewing your monthly expenses and whether they are current or behind.
Identifying and eliminating non-essential spending.
Creating a vision of where you want your finances to be and what you need to do to get there.
2. Create a Spending Plan
Based on your assessment, create a budget to direct where your money will go each month. Stick to that plan and be sure to include funds to bring your bills current, pay off high-interest debt, save money and invest for the future.
If the budget is not balanced, consider eliminating some expenses and increasing your income, which we’ll discuss below.
3. Increase Your Income
There are plenty of ways to increase your income and cover all the expenses in your budget. Here are a few options to explore:
Get a side hustle.
Ask for a raise at work or move into a higher-paying position.
Look for a second job or freelance opportunities.
Sell unused items.
Consider renting out a room or space in your home.
4. Reduce Debt
Debt can affect your ability to pay your regular expenses and build wealth. Create a plan to attack it with fervor. Here are some tips to help:
Focus on high-interest debts.
Negotiate with creditors for lower interest rates.
Consider debt consolidation loans
5. Build an Emergency Fund
An emergency fund can keep you from borrowing high-interest debt to cover everyday living expenses. Getting one started sooner than later will greatly help your overall financial goals.
Start small and increase over time
Automate savings wherever possible
Set achievable milestones for your savings goals
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This article originally appeared on GOBankingRates.com: 5 Steps To Take Now If You’ve Spent All Your Pandemic Savings
