GREENSBORO, N.C. — The global supply chain crisis and rising costs associated with inflation are hitting your wallet right now. The domino effect is likely causing cash flow problems in every household in America.
Money expert Ja'net Adams said the financial strain is forcing more people to dip into their savings or deplete funds completely. During tough times, it may seem out of reach to save money, but having an emergency fund could make a difference.
"Recent data showed only 44% of Americans could cover a $1000 emergency right now. That means six out of every ten people could not and would have to use a credit card or borrow the money, which could put them even further in debt," said Adams, who wrote the book, The Money Attractor. "This is the endless debt cycle that many Americans experience for most of their lives. Having an emergency fund can turn an emergency into an inconvenience," said Adams.
Adams offered three ways to solve your cash flow problems and ways to build up your emergency fund.
Cut It Back:
"The easiest way to find extra money is to look at the money you spend in your everyday life. Many people don't even realize how much money they actually spend. If you need extra money for an emergency fund then take the next couple of weeks and track every penny that your household spends," Adams said. "Once you see how much money is being spent in different categories then you can start to cut back in those categories."
Make sure you put the money you save by cutting back into a savings account.
Sell It All:
"If you go through your entire spending plan cutting back on expenses and you still don't have $1000 or $1500 saved then you need to take the next step and sell the "stuff" you no longer want," Adams said.
"That "stuff" could be clothes, shoes, sports equipment, music instruments, artwork, jewelry, electronics, pretty much anything that someone will buy from you. If you have anything of value that is just sitting around collecting dust then go sell it and put that money in your savings account," Adams said.
Increase Your Work Hours:
"No one likes to hear this tip especially if they don't like their job, but one way to make more money is to increase your work hours or to request overtime. If that is not an option then you may need to look for a second job," Adams said. "Understand this is not permanent and you are only taking on the extra hours in order to get yourself in a better financial position."
Your best bet is to be prepared for an emergency because you never know when it could happen. Prepare today.
"Not having $1000-$1500 saved in an emergency fund could put you in a bad place financially if an emergency happens," said Adams.
