early retirement withdrawal covidAnchiy/E+/Getty

 

About half of Americans have taken or plan to take an early withdrawal from a retirement account during the pandemic, according to one survey.
Even if your retirement account is your best option for quick cash right now, tread lightly, says a financial planner.
If you don’t make a plan to replenish your account, it could be damaging to your retirement.
Sign up to get personal finance stories straight to your inbox »

If you had to pull cash from a retirement account lately, you’re not alone. 

The coronavirus pandemic has caused more than 40 million Americans to file for unemployment insurance so far. Small businesses have shuttered and pay cuts have become commonplace. These are dire financial straits.See the rest of the story at Business Insider

NOW WATCH: Tax Day is now July 15 — this is what it’s like to do your own taxes for the very first time

See Also:

A traditional IRA is a tax-advantaged account that can help you save thousands for retirementMark Cuban and a bank CEO who first connected over Twitter built a free site to make it easier to apply for PPP loan forgivenessYou can file for a tax extension that pushes your deadline to October, but tax payments are due on July 15

Original Source: feedproxy.google.com

woman using cell phone at homeWestend61/Getty Images

 

My savings strategy is simple: I transfer money out of my checking account into an online savings account with a higher rate of return — and then pretend it doesn’t exist.
I learned this strategy when I worked a full-time job and taxes, insurance, and retirement savings would come out of my paycheck before I even saw the money.
Now, I’ve been able to fund trips abroad, cover expensive car repairs, and build a robust emergency fund by pretending I don’t have any money.
Read more personal finance coverage.

To save money, I act like I don’t have any. 

That may sound odd. Let me explain. First, I actually like putting away money. As a child, I had my own little bank in the shape of a mailbox. I remember it being a gift from my grandfather, who’d worked for the United States Postal Service. I’d slide coins into the shiny mailbox and grew up learning that it was important to have my own money so I could take care of myself.See the rest of the story at Business Insider

NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly

See Also:

Last year I was $30,000 in debt, but a 2-part strategy helped me pay it off and put $28,000 in my savings accountI worked as a vet tech for years, and I don’t think pet insurance is worth the cost. Instead, I have a simple strategy for protecting my 4 pets.6 signs you’re using the wrong savings account

Original Source: feedproxy.google.com

4 financial experts told me how to cut my spending while my income is down so I don’t blow through my savings
4 financial experts told me how to cut my spending while my income is down so I don't blow through my savings

4 financial experts told me how to cut my spending while my income is down so I don’t blow through my savings

I’ve been a full-time freelancer for the past five years and haven’t had much issue keeping my income steady.

But thanks to the coronavirus, many of my clients have cut back on assignments.

My emergency savings fund is in good shape, but I don’t want to drain it before the pandemic is over.

Since I’m still making some money, I asked four financial experts how to cut my spending so I can live on the money I’m bringing in and not have to blow through my savings.

I’ve been working overtime to build up my savings account since 2015, after I was laid off from my job and realized my finances were a big mess. When I switched from a full-time job to being a full-time freelancer and business owner, I made it a point to add to my savings account and emergency savings fund every single month.

But due to the shakeup caused by the coronavirus, my projects have thinned out and my clients have taken a few steps back and put work on hold. The money isn’t coming in as steadily as it was before the virus, which made me panic about dipping into and depleting my savings account.

Original Source: 4 financial experts told me how to cut my spending while my income is down so I don’t blow through my savings

Curated On: /

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeVisit Us On Instagram