Millennial Money: Still employed? Focus on savings and debt

The coronavirus pandemic has thrown tens of millions of people into financial turmoil. But not everyone is feeling the pinch. Not yet, at least.

Roughly a quarter of Americans (24%) said the coronavirus crisis has not impacted their financial situation, according to a survey conducted April 10-12 by J.D. Power. But that figure could change as more companies cut salaries, halt 401(k) match programs and announce layoffs while they struggle to adjust to the new normal.

“It is still important for those of us that are employed during this pandemic to understand our financial health,” says Dan Slagle, a certified financial planner who co-founded Fyooz Financial Planning LLC in Minnesota with his wife, Natalie. “Just because you are employed (now) doesn’t mean you are safe a month from now.”

Those fortunate enough to have financial stability now can use this time of social distancing to focus on their fiscal health and emerge from this economic crisis in better shape than they went into it.

Here are five ways you can pay down debt, build up your savings and retool your budget while you’re staying at home.

1. TURN EXPENSES INTO SAVINGS

Your car is sitting idle. You’re not taking Ubers. You can’t go to yoga or spin or CrossFit. Your daily coffee is now prepared at home. Same goes for breakfast, lunch and dinner, most days. The money you’re saving on daily expenses could well be eaten up (literally) by hungry kids who are now home all the time. But if not, use it to build up your emergency reserves.

In an ideal world, you’d have three to six months’ worth of living expenses stashed away in an emergency fund. If that feels intimidating, start with one month, then build it to two months, and keep going from there.

If you already have a healthy emergency...