What To Do When You Don't Have An Emergency Fund
So you don’t have an emergency fund and we’re in the middle of a global pandemic. Or perhaps, you have some savings, but not enough to see you through the next few months. It’s okay to feel emotional, but it’s important now to take some steps to protect yourself.
We’re still digesting the federal aid package that was passed by the Senate this week, so this article won’t contain advice on the stimulus checks and other provisions mentioned in it. However, we hope to have a clearer guide on that in next week’s issue.
Until then, here’s how to handle things when you don’t have much money saved.
If you’re still employed, start by reducing any pre-tax contributions to retirement savings or your transit benefit card. If you’re not sure where to do this, check in with HR -- you’re not the only one in this situation, and it’s likely that they have a plan in place to handle these requests. Doing this will put more cash in your pocket that you can funnel toward savings.
Call your federal student loan provider and ask for a pause on your payments. It’s called “administrative forbearance” and will be in effect for the 60 day period starting on March 13. The stimulus bill has more student loan provisions, which we will go over in detail in next week’s newsletter.
It may make sense to pause paying off your other debts. Yes, interest may accrue, but having cash on hand, especially when employment isn’t certain, is key.
Check to see if your internet provider signed the Keep Americans Connected Pledge. This pledge says that for the next 60 days, an internet provider will not terminate services to any household or small business that can’t pay its bills. No late fees can be charged as a part of this pledge.
If you do not have internet access, you may qualify for Comcast’s Internet Essentials package, which costs $9.95 per month for a basic internet package. Similarly, households with students can get free internet from Altice, Spectrum, and Cox.
Take some time to look through your other bills and monthly expenses. If you haven’t yet, call your gym and ask to put your membership on pause. Consider canceling non-essential subscriptions to shore up some cash, and then direct it to your savings account.
If you’ve lost a wage or salary based job, look at applying for unemployment insurance. This differs in every state and has been expanded in the Senate’s bill to include gig and freelance workers. If you’re a small business owner, there may also be relief programs in your state.
If you don’t have much money and don’t know when your next paycheck is coming, do not be afraid to use the resources around you. Save your cash for healthcare or rent and use the local food pantry to get groceries. A lot of mutual aid programs have popped up in local communities. Tap into them and ask for what you need. People WANT to help right now.
In general, check out Aunt Bertha, a social care network online that can connect you with local resources, even outside of a pandemic.
If you’re not going to be able to make rent, check the laws in your state. Many are suspending evictions. If that is the case, reach out to your landlord. Let them know what’s going on, and ask to set up a payment plan. Pay a little at a time if you have it.
If you will be missing other bills, let your provider know by giving them a call. Make it clear by saying “I lost income due to coronavirus.” These, for many customer service lines, are the magic words in terms of getting things done. Consider asking for fees to be waived, deadline extensions, and payment arrangements.
Think about holding off on filing your taxes for now, especially if you’re a freelancer or gig worker who will be owing money. The deadline got extended to July, which means you have more time to pay up.
Have you accumulated credit card or rebate program points? Now is a great time to use them. You can redeem points for things like groceries, which can free up a little extra cash to save.
Did we miss anything? Send us an email with your ideas!
