Learning Center

Back

Prepare Your Finances for the Next Emergency

If there’s one financial lesson many people will take away from the pandemic, it’s the importance of a well-stocked emergency fund. In fact, a mid-2020 survey found that respondents’ top financial regret was not having enough emergency savings to withstand the crisis — and this was true for every income group.1

A sudden job loss, an income reduction, and large unexpected expenses like medical bills and home repairs can be devastating for those who don’t have adequate savings. It’s generally recommended that households keep a cash reserve that would cover at least three to six months of living expenses.


Biggest Pandemic-Related Financial Regret

Pandemic-related financial regrets: under-saving for emergencies 23%, under-saving for retirement 20%, debt 17%, income instability 14%, living beyond their means 7%, something else 19%

Source: Bankrate.com, 2020


Even if your financial situation held up fine in 2020, adding to your savings could help you avoid racking up debt the next time you face a financial challenge.

Here are some ways to build up your emergency fund.

  • Divert a portion of salary. Determine how much income you can afford to set aside and transfer that amount automatically from your paycheck to a separate account.
  • Track and control spending. Review your spending habits and look for the least painful ways to cut back, leaving a little more to stash away each month.
  • Make the most of a windfall. Resolve to save your tax refund, quarterly or annual bonus checks, monetary gifts, and other unplanned income.

Information provided has been prepared from Broadridge Advisor Solutions sources and data we believe to be accurate, but we make no representation as to its accuracy or completeness. Data and information is provided for informational purposes only, and is not intended for solicitation or trading purposes. Broadridge Advisor Solutions is not an affiliate of Equitable Advisors, LLC. Please consult your tax and legal advisors regarding your particular circumstances. Neither Equitable Advisors nor any of the data provided by Equitable Advisors or its content providers, such as Broadridge Advisor Solutions, shall be liable for any errors or delays in the content, or for the actions taken in reliance therein. By accessing the Equitable Advisors website, a user agrees to abide by the terms and conditions of the site including not redistributing the information found therein.

Securities offered through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC. Annuity and insurance products offered through Equitable Network, LLC and its subsidiaries.

California Insurance License #: 0L60190

Securities offered through Equitable Advisors, LLC (NY,NY 212-314-4600), member FINRA/SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC registered investment advisor.

Annuity and insurance products offered through Equitable Network, LLC, which conducts business in CA as Equitable Network Insurance Agency of California, LLC, in UT as Equitable Network Insurance Agency of Utah, LLC, and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and its affiliates do not provide tax or legal advice. Please consult your tax and legal advisors regarding your particular circumstances. Individuals may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. The information in this web site is not investment or securities advice and does not constitute an offer.

For more information about Equitable Advisors, LLC you may visit equitable.com/crs to review the firm’s Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively.

Link to equitable.com

Privacy Policy

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck