From The Tribune staff reports
Emergency funds are meant to help people weather the storm — and lately more people are realizing the importance of them during the coronavirus pandemic.
According to a recent survey from TopCashback.com, the USA’s most generous cashback site, nearly one-third (31 percent) of Americans have dipped into their emergency fund over the past six months.
The survey polled a cross-section of 906 adults, aged 18 and over.
Financial Feelings
Are you financially confident?
- Yes (61 percent)
- No (39 percent)
Do you ever stress about money? (top three responses)
- Occasionally (34 percent)
- Regularly (23 percent)
- All the time (21 percent)
For Emergencies
Do you have an emergency fund?
- Yes (53 percent)
- No (47 percent)
Does your emergency fund cover at least six months of living expenses?
- Yes (61 percent)
- No (39 percent)
In the past six months, have you had to dip into your emergency fund?
- Yes (31 percent)
- No (69 percent)
For those who may have been affected financially during these recent times, here are three simple tips to get back on the financial track from Rebecca Gramuglia, Personal Finance Expert at TopCashback.com.
- Revisit your budget. If you find yourself overspending or using your emergency savings, try implementing the 50/20/30 rule. Make sure your adjusted budget covers essentials, financial priorities and all of your wants. This rule requires you to spend only up to 50 percent of your after-tax income on essentials, such as housing and food; 20 percent on financial priorities such as debt repayments and savings; and 30 percent on your wants; such as splurges. However, if you find yourself needing to save more, consider switching the latter two percentages. Another way to view the 50/20/30 rule is as the Needs/Savings/Wants rule.
- Be mindful of spending habits. While many are still doing a large majority of shopping online, be sure to look for ways to save. If you find yourself paying for shipping, see if you can score in-store pickup to eliminate extra costs. Plus, be on the lookout for ways to save by shopping sales, using coupons and shopping through a cashback site like TopCashback.com to earn a percentage of your purchase back in cashback.
- Look for ways to lower your bills. Do a subscription cleanse or deactivate any duplicate accounts to cut costs and save money. Subscriptions include newspapers, streaming, food services and more. It’s easy to sign up for these services during a free trial, but sometimes we forget to opt out before paying. And don’t forget to review all additional expenses like cable and/or internet to negotiate lowering your bill. Any money you “save” by cutting costs can go towards an emergency savings fund.