The coronavirus pandemic has left many unemployed. If you’re nervous about getting your bills paid, consider these tips from Daniel Schlein, a business development associate at Alliance Advisory Group.
“Take baby steps, make a budget, and identify the money that you’re not currently spending,” he suggests. “Find those expenses you’re not paying for while you’re sitting at home. Right now, I’m not paying $50 a week for my personal trainer because I’m not going to the gym. I’m not going out to eat every day because I can eat at home. Say it adds up that you’re saving $100 each week. Take that $100 and put $50-75 into a savings account you won’t touch.”
He encourages you to continue finding times to put money into that account, especially when things go back to “normal”. For example, if you get a pay bump for your day-to-day job or get an unexpected gig and earn extra income, put a portion of that bump or extra income into your rainy-day account.
“If something happens in five years and you become unemployed, you have money saved that can keep you safe and have you worrying less,” Schlein says.
But how do you know just how much is enough?
“You know the things you have to pay for like your mortgage, your rent, your utilities,” Schlein notes. “You know for a fact if you lose your job you still have to pay for those things. Start with a budget and write down what you have to pay for. Then think about what else you need to buy, like food, or if you have student loans you have to pay for.”
Once you determine how much your necessary expenses come to, Schlein recommends multiplying that number by three to six months.
“Identifying the dollar amount is the easy part,” he says. “Starting a habit of saving is the hard part. It’s not a today or tomorrow thing. Slowly work yourself up there. That way, should you find yourself unemployed again, you have a little more time to follow your dreams because you’re not super stressed out that you don’t have any money to do anything. It takes discipline in creating that system.”
If you have any questions, Daniel Schlein can be reached at firstname.lastname@example.org.
By Lauren Kirchmyer of Dance Informa.