If you are trying to figure out how to save money once you get your job back, you are not alone.
This is a priority for a lot of people who will go back to work. Largely because they have an idea what it was like to have nothing in the last few months. The Washington Post shares that about 77% of furloughed workers expect to be rehired again once the stay-at-home order is lifted. This is a positive outlook considering what the pandemic has done to the US economy.
As the virus spread across the country crossing state lines, a lot of governors opted to put down a stay-at-home order. This was meant to give the healthcare industry the chance to provide urgent medical care for those who are already sick. This is because when more and more people get sick, it will overwhelm hospitals which is what happened to a lot of healthcare facilities.
This situation drastically reduces the quality of care they are able to provide and increases the chances of non-recovery for patients. As a result, businesses were forced to adapt to a drastic change as well. While some were able to survive, a lot of companies had to close down. But this is not a permanent situation.
The economy will bounce back up, just as it has been doing in the past. When you get your old job back or find a new one, the one thing on top of your mind should be how to save money for the future. If there is one thing this health crisis has done, it has exposed the need to have some form of savings. This is what you can depend on when a crisis hits. Here are some ideas on what you can prioritize when getting your finances in order after you get your job back.
Make sure you save for emergencies
If you are still trying to get a grasp of how to save money when you get your finances back in order, a good place to start is your emergency fund. You might not have been paying a lot of attention to it in the past. It is even possible that you only saw it as a waste of your time and money. You think that the funds you are setting aside can be used elsewhere.
One thing you need to realize when you are trying to set aside money for your emergency fund is that it will take time. Maybe you are thinking that the money is better spent elsewhere is because you are setting aside more than what you can afford. What this does is put your finances in a difficult situation which is actually what you are trying to avoid in the first place.
Before you start saving for your emergency fund, you need to have a goal in mind. How much do you need to have in your reserve fund? 6 months’ worth of expenses, 1 year, or even more? You need to have a target amount and work your way towards it slowly. You can gradually put in a little bit more over time. But not so much that you put other areas in your finances in danger also.
Pay down your credit card debt
You might save that as you look for ways on how to save money, paying down credit card debt is not a part of it. But you have to understand that putting off payments of your credit card costs money. Even if you are paying the minimum every month, you are actually paying more than what you should. As a result, you are losing money in the process.
You should not feel bad because when you really had nothing, your credit cards were there to help cover for your expenses, It even allowed you to pay back what you charged on installment basis every month. But when you get your finances and income back up, it is time to pay back more than just the minimum. If possible, pay it off at the end of the month.
If you are able to pay off your credit cards, you free up your expenses and you can start re-allocating this amount to savings. A good portion of that can even go to beefing up your emergency fund. This will help prepare you for unforeseen situations in the future. The more you pay down your credit cards, the more you can save money from having to pay fees and other charges.
Start looking for ways to diversify your income
As you try to look for ways how to save money when you get your job back, it will be a lot easier if you can diversify your income sources. The more diverse it is, the more you can take home at the end of the month. This gives you the chance to save more simply because you have a bigger take-home pay to work with.
It is already an amazing task to be able to get back your old job or even a new one. Marketplace shares that there are 3 jobs created for every 10 jobs lost due to the health crisis. This means that there could be a shortage of the number of jobs available post-pandemic. This makes it all the more important to look for other sources of income.
As you do this, make sure that you also consider what most people refer to as the new normal. One of these is the predisposition of consumers to shop online. That being said, take a look at the online market and explore how you can use that to your advantage. It would be better if you can incorporate your hobby as well. You get the chance to earn extra money doing something you already love doing. This is what you refer to as an income-positive hobby.
Re-assess your investment portfolio
Looking for ways on how to save money is important especially when you get your job back with the health crisis going on. There are a lot of people who might still be struggling financially. Some might still be in furlough while others where let go already. There could be some who are still going to work on a reduced number of hours.
If you get your job back, planning for the future should be on top of your “to-do” list. More than your emergency fund, you need to look at your investment portfolio as well. You do not have to make drastic changes. Review it first and identify your current situation. Do not be shocked when you notice that your investments are not yielding expected results.
The health crisis has affected a lot of industries and returns might not be what you are looking for. Give it time to bounce back but be sure to make necessary adjustments. It can be putting more on companies who are bouncing back and pulling from under-performing stocks. It is best to work with a finance professional to help you go over and plot out your best course of action.
Keep a healthy mind and body
It might not even be a part of your list but you need to make sure that you also keep your mind and body strong. One thing this pandemic has taught us is that your physical health is important. You might say that it is quite impossible to focus on that now since the gym is closed down. That was done to help protect you from getting infected.
But you need to know that the gym is not a crucial part of the process. You can still exercise in the comfort of your own home. It is also crucial that you monitor what you eat. Especially now that you are at home most of the time. The temptation to eat just about anything is there. Be sure to eat healthy food as well. This will keep you healthy inside and out.
One of the first questions that will run through your mind when you get your job back is how to save money to help you get through emergency situations in the future. This is to be expected and there are ways to help you go through it more effectively.