Lynnette Khalfani-Cox, The Money Coach explains why despite the impact of COVID-19 on your finances you still need to find a way to save money for future emergencies and goals.
Lynnette Khalfani Cox: Saving money is definitely hard these days, but you still got to do it. Let me tell you guys about why it’s important for you to save through good and bad times.
First of all, as the coronavirus outbreak has shown us, something always goes wrong. Any time you have some extra cash on hand, you’ll be better prepared to deal with an emergency any kind of an emergency, whether that’s a man made, or a natural disaster or something else.
Also, having some extra cash in the bank gives you options. It gives you flexibility in terms of your choices.
You should know by now of course that if you have a job, for example. This is even before coronavirus. If you have a job, for example, that you’re really not feeling and you’re not enjoying yourself. You’re not compensated the way that you want to be or should be. If you have some extra savings set aside, that might give you some options to quit that job or to pursue other options that might be better suited for you.
Another reason you should always think about having some savings is to reach your goals. Usually the things that we want to achieve in life have a price tag attached to them.
Maybe you want to buy a house. Maybe you want a second house or some investment property. Maybe you want to buy a new car. Maybe you want to pay for your kid’s college education. Whatever the future goal, again, there’s a price tag attached to it.
I want to encourage you guys, even during these tough times, to not forget about savings. Savings should actually be one budget category that you track and monitor every single month. I don’t care how much or how little it is. The key point is that you’re disciplined and consistent in savings.
If you can only save $25 a month, great, make it $25. Maybe you can save $50, even better. Whatever the number is, $50, $500, it doesn’t matter. The key is save a little something each and every month.