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Money Matters Blog

Tuesday, August 4, 2020

My Savings Has Been Wiped Clean; How Can I Replenish It?

With country-wide shutdowns and lay-offs this summer due to COVID-19, many Americans are finding their finances in a rough spot. This financial struggle has caused many to use their savings to get by; with emergency funds and savings accounts dropping to zero. 

For many, this August is bringing a plateau, if not an upturn, in financial situations. As situations return to normal, it’s imperative to build savings accounts back up again. As such, many may be asking the same question: Where do I begin?

Set a Goal

Before getting started on saving up money, establish a tangible goal. You can try to recover the value of the savings lost, or start smaller, with a more attainable goal. Bear in mind that experts recommend having funds to cover three to six months’ worth of living expenses set aside in an emergency fund or savings account.

Trim your Spending

A good place to start finding extra dollars for saving is by reviewing your spending for ways to cut back. Look for expenses that can make a difference in a monthly budget without dramatically affecting quality of life. A good example of a place to trim is a recurring subscription you haven’t used in ages, like a gym membership or streaming service.

Find a Side Hustle

A great way to land extra funds is to find a side job that doesn’t require a major investment of time. Some options include taking surveys on sites like Swagbucks and doing gig work for companies like Uber or DoorDash, where you can set your own hours.

Sell Your Old Treasures

Turn forgotten treasures into moneymakers by selling them online. You can sell old clothing on ThredUp, unwanted jewelry on Worthy.com and unused sports equipment on Swap Me Sports. Use the cash earned from these sales to jumpstart your new nest egg.

Make a Plan

Once you have a goal in place and you’ve maximized monthly contributions toward savings, it’s time to create a plan. Map out a timeline of how long it’ll take to reach your goal when putting away as much as possible each month. Remember, the more aggressively you save now, the sooner you’ll reach your goal.

Start Saving

The best way to ensure that putting money into savings each month actually happens is to make it automatic. You can set up an automatic monthly transfer from your Community Financial Checking Account to your Community Financial Savings Account on a designated day of the month, or in certain intervals. We also have separate Goal Setter Savings, or Certificates of Deposit that can help your money grow out of sight. Give us a call at (877) 937-2328 to discuss your options.

Put Unexpected Windfalls in Savings

To speed up the process of rebuilding depleted savings, you may want to resolve to put unexpected windfalls into an emergency fund or savings account. This can include tax refunds, a work bonus or gift money.

Rebuilding depleted savings isn’t easy, but the security of having a safety cushion to get you through a financial setback will make it well worth the effort. The best time to start saving is right now. You won’t regret it!

 

Your Turn: Have you started working on rebuilding your savings? Tell us about it in the comments.


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