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davidlerner.com > Budgeting  > Saving During Coronavirus

Saving During Coronavirus

The past year has been a challenge for most Americans.

It's been a year of political upheaval as well as economic uncertainty, not to mention a global health crisis. People have been laid off or had wages cut, and businesses are in trouble all around the world. Even being able to retire has had to be rethought for many.

Studies showed that almost 30 percent of Americans stopped or decreased their retirement savings during the COVID-19 crisis which shut down the worldwide economies. The same percentage withdrew money from their retirement accounts over the last 60 days before a report was published in May, just a few months into the pandemic. Over half of the folks that pulled cash out of their retirement savings did so to cover living expenses, but 26 percent experienced a job loss. Times are tough and saving is not easy when things get so tight.

Getting a real sense of your finances is essential to survive this current economic situation. Being blasé or vague about how much you have coming in versus how much you have going out could spell disaster if you aren’t careful. Getting an app that can help keep track of your accounts or getting a reliable money saver app like Digit or Acorns could help you out and make things simpler. Simple, Mint, and Clarify Money are all top-rated apps considered best for budgeting.

Getting a household budget in place is essential if you want to be able to save. You have to know exactly how much you spend every month if you want to be able to set money aside. If you don’t, you are just shooting in the dark. 65 percent of Americans have no idea how much they spent in the last month. Younger generations are far less concerned by the amount they spend each month, and that is worrying given the fact that they are the future of the country.

Being able to set a budget is part of being an adult, and in these perilous times, it is essential, or the next few years could end up being very tough indeed. The future is a few years away now, and retirement might be a thing of the past or at least a pipe dream if you aren’t able to save. Figuring out your budget is the first step to being able to do that.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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