free up enough funds to boost your savings
contribution to 20% or more of your take-home
pay. The more the better, McClary said.
Stay on this budget until you have at least three
months of net income set aside for emergencies.
No matter where you are in the progress toward
this goal, more savings is better than none when
you need the money right away.
GET HELP
If you are already feeling the pinch financially,
ask for help.
Reach out to your landlord, mortgage lender,
utility providers, credit card company or other
lender. Many utility companies are making
provisions for this pandemic. For example,
Seattle Public Utilities Seattle City Light are
promising water and electricity customers they
won’t have their services shut during the area’s
coronavirus emergency. Evictions have been put
on hold in some cities for the time being.
As seen during the federal shutdown, most
people struggle to operate with an interruption
to their income, even if for a short time. The
FDIC, along with other federal and state
regulators, have urged financial institutions to
help customers affected by the virus and some
lenders say they are willing to do so. Lenders
may be willing to work with you to postpone or
lower payments for a period.
Lawmakers are also considering a number
of provisions to free up cash for Americans
and protect them in a downturn, including
a possible payroll tax cut, increasing paid
sick leave provisions and strengthening the
unemployment benefits.