DETROIT – The pandemic is an unfortunate reminder that having a financial security plan is a good idea.
According to a BankRate.com survey, nearly three in 10 people do not have emergency savings. Also, one in four have a rainy day fund, however they do not have enough money to cover three months of living expenses.
But it’s never too late to start.
“This outbreak is making us realize how important it is to have financial security,” said Andrea Woroch, a money saving expert.
In fact, a report form the Bureau of Economic Analysis said the savings rate hit 13.1 percent in March, up five percent from the previous month.
Woroch said everyone should build an emergency savings. She recommends taking money you might be saving right now on child care or gas and set it aside in savings if you can. Also, put any savings that you acquire from negotiating your bills or from using free services and put that right to your savings.
Put any savings that you acquire from negotiating your bills or from using free services and put that right to your savings.
Also look for ways to diversify income and make more money.
Woroch suggests websites like taskrabbit.com that posts side jobs “taskers” can pick up. The jobs can include cleaning, deliveries, and furniture assembly. Other websites she recommends flexjobs.com and upwork.com that post freelance jobs.
With Rover.com you could care for other people’s pets.
“There are a lot of people who still need help with their pets, health care workers, nurses, first responders who are working longer hours may need help with their pet,” Woroch said.
Woroch says now is the time to consider creating an estate plan
“A lot of people know they need one but they usually put it off you, but reality is that anybody over the age of 18 should have a will set up,” Woroch. “Having those legal documents in place. you find that you and your assets and your family will get protected in case of some unexpected issue arise
Woroch said you can make a will online to save money with sites like Trustandwill.com.