Why it is important to generate savings even despite the difficulties of being in crisis

Don’t let any pandemic prevent you from starting to save.

One of the great concerns that COVID-19 generated in the minds of millions of people when it became a reality in the United States was: what am I going to do now if I have no savings?

Many Americans lamented not having saved enough, as reflected in the June Bankrate survey where at least 55% felt they did not have enough money saved to face the health emergency.

If you are one of the lucky ones who has a job despite cuts in salary or working hours, then it is time for you to be forewarned. It’s never too late to save and less to leave it for later with the pandemic. With these three simple tips you can save and start your much-needed emergency fund even though the coronavirus is still present.

1. Prioritize saving

Now more than ever the importance of saving is verifiable. If you haven’t created your emergency fund, it’s never too late to do so.

Saving has to be one of your most priceless habits, even when you’re tight on finances. To make it happen, always contribute an amount to your emergency fund at the beginning of all your income as if it were one of your expected monthly expenses.

The best way for you to accomplish this task is by automating your deposits to a savings account. The general recommendation is to save at least 10% of your income, but with the presence of the coronavirus, the amount does not matter , what is relevant is that you do it.

2. Where to keep your money

According to the experts at CNBC, the best place to keep your emergency fund is often in an online savings account. Usually these accounts offer better annual returns than physical banks.

Pay regular amounts frequently so that your savings grow and you can cover three to six months of expenses in case you need to withdraw your emergency fund. If you have a business or are the only breadwinner in your family, it is recommended that you achieve savings equivalent to nine or twelve months of expenses.

3. Confirm your account is federally insured

Insurance from the Federal Deposit Insurance Corporation ( FDIC ) protects your money saved up to $250,000 from your deposits if something bad happens and the financial institution that manages your money goes bankrupt.

Before opening any account check that the bank you choose is covered by the FDIC. Either you ask the agent directly or check if it is listed on the FDIC page.

We still haven’t got rid of the coronavirus and its economic effects in the country, so the sooner you start your savings process, preventing yourself from any misfortune, whether due to dismissal or even a sick relative, the safer you will feel at any time.