Saving money during COVID-19

What is it?

Considering recent events and Coronavirus, people started thinking more about saving money. Since there is uncertainty regarding the pandemic nobody knows how it will develop and affect the job market. That is the reason why people are reevaluating their home budgets and trying to start saving more than ever before.

Saving money during COVID-19

Why the trend?

In troubling times people start relying more on their emergency savings to get them through the rough period. However, their budgets are not endless and it better to set up a contingency plan that involves excluding all unnecessary items or habits. Eliminating additional expenses such as subscriptions, unlimited phone plans, cleaning services, or random grocery shopping will bring out what is most needed.

Banks and financial companies announced their willingness to collaborate with customers impacted by corona offering them a variety of programs and payment deferrals. Some companies will offer rate cuts on a mortgage that will immediately affect monthly payments. Personal loans are also becoming cheaper since more people are applying for one. Cards issuers are also offering benefits to card owners like moving card balance from a high-interest card to one that charges no interest in the introductory period.

According to research, more than 68% of Americans are worried about the impact of coronavirus on the financial markets. Banks state that they are more stable and that everyone’s money is insured by the Federal Deposit Insurance Corporation.

Banks advise having money for bills in a savings account tied to your primary account, with the rest of funds in a high-interest savings account. Since interest rates on saving accounts are driving down, high-interest online savings accounts will give you higher rates than a national average. When it comes to businesses in the US, they are trying to get tax refunds from the IRS since it was announced that it made 122 million payments to eligible US residents.

Small businesses that didn’t have any cash flow in the past two months will get money through stimulus checks and PPP loan forgiveness programs as well. PPP is an SBA loan that helps businesses keep their workers during the COVID-19 crisis. The US Federal government will forgive these loans if the funds are used according to the specific guidelines.

This is not true only in the United States, of course. For example, In Italy, urgent measures concerning access to credit for companies were approved as well and they are called Decreto Liquidita. The decree is the second of three decrees issued to support national businesses.

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