Saving for a rainy day
In all the drama surrounding Covid-19, politicians busy with telling us how to live our lives, especially at the local level, it may be confusing to know what to do.
For those whose companies allowed you to work from home, congratulations. Your world, at least financially, has not changed due to Covid-19 and thus you can continue on your current financial plan.
For those of you who are faced with reduced hours or even unemployment, do not despair and do not throw out your financial plan. Yes, with the reduced income the numbers on the plan are no longer valid. This means the plan needs to be reworked with the reduced numbers.
By taking your current budget as a start and then changing the numbers to match the current income level you can continue on your path to financial freedom though at a slower pace.
Some of you may have to dip into your rainy day fund to support your current lifestyle while you are receiving a reduced income. This account is designed to assist with financial challenges. Once your situation improves it would be time to replenish the money removed from the rainy day fund also known as the long-term saving for spending account so you again have backup income for any situation that arises in the future.
I believe in you.