There is no doubt that this past year has challenged many people across the globe in many different ways. One of the biggest struggles people faced in the past year was financial instability. Many Americans live paycheck to paycheck, and do not have an emergency fund set aside for when unexpected events happen, like unemployment. We can take some of these hard lessons that many have lived through and change our habits to create a better future.
In Spring of 2020, COVID19 hit United States and the employment rate reached 14.8%. To add to this sudden financial stress, CNBC reported that only 39% of Americans have at least $1,000 set aside for unexpected expenses. The pandemic escalated a lot of the financial issues that many Americans face. The good thing is we can learn from the past and change our actions in the future.
There is no doubt that 2020 was a hard year for the world, but I believe there are many lessons that can be learned that we will take into the coming years. Here are some simple practices that everyone can engage in to ensure financial security for the future.
- Create an emergency fund with six months of living expenses for unexpected events
- Use split direct deposit to save money from every paycheck in a savings or retirement account
- If possible, spend less than you make. Use a monthly budget to track your spending and income.
The Student Wellness Center’s free Financial Coaching service can provide education and assistance in planning for the future. Schedule a 1on1 appointment today!