For their 2021 New Year’s Resolutions, many folks moved saving money up a few notches on their lists. Losing weight remains a strong priority for most Americans, but another popular goal this year is building bigger bank accounts for emergencies. Covid-19, along with fires, floods and other misfortunes that plagued the nation in 2020, pushed more of us towards saving money in 2021.
New goals for the new year
Loss of income or lower earnings during the darker days of the pandemic led a lot of people to rearrange their annual goals this year. To avoid standing in food lines during the next disaster, or facing home foreclosures, record numbers of Americans have turned to saving for the future. Starting emergency funds has now gained steam.
Never mind the new car or the expensive vacation for 2021. Financial security is first and foremost now. Before Covid-19, most of us couldn’t even imagine a world without full-time jobs and regular pay checks. Now, we’re keenly aware of risks that lurk around every corner. No one could ever have predicted the full financial fallout of 2020.
The nearly year-long pandemic has been far less stressful for those who saved a few bucks to cover life’s catastrophes. While many people lost sleep over not having enough money to pay the mortgage or keep up with the rent, others were able to take stay-at-home orders in stride. Having a bank account set aside for emergencies made all the difference for them.
That’s one of the reasons that certified financial planners, like Ronald Van Surksum (Advanced Asset Management), advises his clients to set aside enough money to equal three-to-six months of pay to fall back on when times are tough. “For most families,” he says, “that’s enough to get through a typical crisis.” Of course, a pandemic is not typical and most disasters don’t last as long, but families with savings to tap into can make it to most finish lines with far less to fret.
Make saving for emergencies a top priority
Start building your rainy-day fund with small monthly deposits of just $25, $50 or $100. Even minimal amounts will increase in value over time if put into solid investments like mutual funds with a wide range of dividend-payers and growth stock. There are hundreds of places for money to grow. To discuss all your investment options, make an appointment with Van Surksum online at aamllc.com or call him at (616) 531-5220. Find out how to build an emergency account with small monthly amounts deposited regularly.
Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC
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Ronald Van Surksum, CFP
4555 Wilson Ave SW – Suite 2 Grandville, MI 49418
Phone: (616) 531-5220 Cell: (616) 450-8439
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