If there's one thing that this current pandemic has taught us, it's that life can be very unpredictable. Knowing how unpredictable life can be, means that having a 3-6 months emergency fund is no longer advisable. It's REQUIRED!
If someone told me last year, that there would be a pandemic that would bring the world to its knees, have us confined to our homes, and wearing masks once we step outside, I would have laughed them right out the door. But here we are. I, like you, had plans to attend weddings, graduation ceremonies, family celebrations, birthday parties, and looked forward to adding more stamps to my passport.
Unfortunately, life had other plans and those plans have left many of us in shambles: emotionally, spiritually, mentally, physically, and financially. Some of us our lucky enough to still be employed but many of us have been laid off, furloughed, or forced to take jobs at lower pay rates. So you must be thinking, "How can I save $5000 during one of the worst economic times in our history?"
"Do not save what is left after spending, but spend what is left after saving." ~ Warren Buffet
While it might seem that the pandemic is working against your financial goals, in some respects you can make it work for you. The money you were spending eating out, hanging out with friends, going on vacations, shopping, childcare, sports, entertainment, and on gas; can now be diverted to a savings account. Other jobs have been created as a result of the pandemic and maybe that business or side hustle you never had the time to start, can finally become a reality.
There are 31 weeks left in the year. Assuming you have $500 already set aside, you would need to save ~$150 per week to reach a savings goal of $5000 by year end. This may not be an option for some based on their financial circumstances but for some of us it's doable. Your goal might not be $5000 but you have to start somewhere. Make a goal, find someone to hold you accountable, and set up an automatic transfer from your checking to your savings account. Just start.
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