Build a Financial Safety Net

It’s always a good idea to prepare your finances for good and bad times. Regularly review your spending and savings to make sure you have the money you need if an emergency arises. Don’t forget to keep your resumé up to date so you’re ready for any job climate.

Revisit Your Budget

Review your monthly budget to determine how you can reduce costs and increase your savings. For assistance creating a budget, check out the ABA Foundation’s Manage Your Money webpage.

Some ways to cut expenses include:

• Reducing how much you dine out
• Evaluating how many streaming services you need
• Reconsidering your paid subscriptions to publications
• Using coupons when shopping
• Lowering your monthly utility bills

Regularly streamline your housing costs to find ways to keep more of your money and increase what you can put into a savings account. If you are a homeowner, consider contacting your lender to explore refinancing your mortgage once the Federal Reserve eases rates. Another feasible option could be to rent a room in your house to bring in additional income. 

If you have trouble paying your mortgage:

• Reach out to the U.S. Department of Housing and Urban Development to learn about support from certified housing counselors;
• Visit Homeowner-Help.org, a free online tool that connects homeowners with resources and assistance when facing financial hardships.

If you are a renter, consider finding a roommate to share expenses with, or move in with family members or friends. 

Build Your Emergency Savings

Most financial advisors recommend having enough savings to cover three to six months of living expenses. But you're not alone if you don't have that much cash in the bank yet. According to a recent Bankrate study, 59% of Americans don’t have enough savings to cover an unexpected $1,000 expense.

It’s important to set up emergency savings sooner rather than later. Strategies to help fund your emergency savings account include:

• Divide your emergency savings goal into monthly goals. Saving can be less daunting by breaking down your goal into smaller increments so it’s more attainable each month.
• Pay yourself first. You are less likely to save if you wait to see your income after paying expenses. If you have direct deposit at work, have your monthly goal amount deposited directly into your emergency savings account each pay period. If you receive a raise, increase the amount of money deposited into your savings account. Even an additional 1% can add up over time.
• Reduce your debt. You can still have emergency savings even if you struggle to pay down credit card balances. Consider paying more than the minimum due and pay off debts with higher interest rates first.
  
   

Update Your Resumé

The job market can change quickly. Prepare ahead of time and tailor your resumé for your next potential career move. Be sure to:

• Include accomplishments you are proud of, any additional responsibilities you’ve taken on, special recognition or awards you’ve received on the job, and skills you’ve gained;
• Highlight data points, such as increased revenue or reduced costs, and other items that instantly will impress the reader and demonstrate your contributions;
• Cross-reference your resumé to ensure it matches with job descriptions;
• Update your references so you don’t have to ask them or search for their contact information at the last minute.

Also, consider investing in your professional development by taking continuing education or certification courses. Some organizations offer continuing education course stipends, mentoring programs or other staff development resources. Do your research to learn what’s available and the skills companies seek in potential candidates in your field.

If you are having trouble paying your bills, or are worried about future payments, visit ABA’s Crisis Help landing page to understand your options.