Well, it’s been quite a year to say the least. And I think that how much it affected us and how we came through it had a lot to do with how we had been going about our lives before this year. How prepared were you for something like this? I think this year many people have come face to face with this age-old question: Are you a grasshopper or an ant? The grasshopper will ignore the future and just live for today only to be surprised when winter comes and he has nothing put aside to get him through the cold snowy months. Meanwhile, the ant has been working throughout the summer to build up a stash to sustain her throughout those food-barren months. There was no way to foresee this odd turn of events this year and to anticipate how it might affect your family’s finances. But good financial planning does not require a crystal ball. Your money management style should not change based on the threat of a world event. That is to say, you should always be “preparing” for an impending disaster. If you have not been budgeting in such a manner, then now is the time to do so. You just never can tell when financial hardship will hit, be it worldwide or personal. The only way to grow your savings during this pandemic or any other time is to spend less and save more. Now is a very good time to examine where your money is going and make some cuts if you are looking to save more money. There are certainly a few things that you are spending money on that are not really necessary. You should have a nice comfortable savings account set up for your emergency fund (with at least 3–6 months of your living expenses in it) I recommend an online account for this. Any other savings that you will need within the next 5 years or so, should also be in a regular (online) savings account. For longer-term savings (to grow your savings) open up a discount brokerage account and buy some mutual funds. An S&P 500 fund is the best way to start. As your money grows you can explore other options to diversify your portfolio. If you have the option of signing up for a 401k (or other retirement account) at work you should do so right away. The bottom line is if you want to grow your savings to be prepared for the future, you have to save (and invest) your money. There is no magic bullet. Save and invest. If you are always doing this, even (especially) through the good times, then you will be able to weather through the not-so-good times such as these, just fine. Don’t be the silly grasshopper from Aesop’s fable, just living paycheck to paycheck, without a thought for tomorrow. Be the little ant saving up for the future Wishing you all a bright and prosperous future!
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