Building an Emergency Fund
It's impossible to know how long the current situation will last or how deeply it will affect your personal finances. When in doubt, play it safe. If your
budget allows for it, take immediate action to begin building up your emergency fund.
' Start today. The earlier you begin saving, the more you'll benefit
from earning dividends.
' Set a goal. Experts typically advise saving enough to cover three
to six months' worth of expenses. If this sounds daunting, start
with smaller goals first and build from there.
' Be consistent. Even if you have only a few dollars to set aside,
the important thing is that you learn to make saving a regular habit.
GUIDELINES FOR A GROCERY BILL YOU CAN STOMACH
While all nonessential shopping should be put on hold when you're facing a financial crisis, grocery shopping is, of course, an ongoing need.
But there may be ways to lower your spending averages during this time when money is tight. Here are some ideas:
' Use what you have. As you think about upcoming meals,
check the cupboards and try to plan a few dishes around food
items you already have on hand.
' Make a list. Impulse purchases can really add up, and it's
especially easy to toss things into a virtual shopping cart when
ordering groceries online. Make a list and stick to it.
' Forget brand loyalty. Try out generic brands of your favorite
products. You'll often find equal quality at a lower price.
' Buy seasonal. The best-priced fruits and vegetables are
those that are in season. (And they often taste the best, too!)
' Look up and down. If you're doing your shopping in person
rather than online, keep in mind stores often stock their most
expensive items at eye level. Look at the top and bottom rows
for cheaper brands.
' Do it yourself. Pre-cut fruit and grated cheese are
convenient, but they also come at premium prices. Purchase
items whole and do the prep work yourself.
' Clip those coupons. Browsing the grocery store's weekly
ad can save you serious cash. Try building your meals around
items that are specially priced.
' Love your leftovers. Try not to throw anything out. If you're
worried you'll tire of an item before it gets eaten, consider
freezing portions of it for reheating at a later time.
' Support local businesses. When you can, try to purchase
items from your locally owned grocers. You'll be helping out
your community and local economy.
' Choose where to stash your cash. A regular savings
account is always a smart option, as you can easily access the
funds if needed without any financial penalties. Money market
accounts are also a great option, as the money is still liquid but
you typically earn a higher return.
' Automate your savings. Use direct deposit or automatic
transfers to get money straight into your emergency fund–
before you're tempted to spend it.