The COVID-19 pandemic is changing the way a lot of people manage their money. Some are curbing their spending in a very meaningful way. Others are diverting money away from their retirement plans and are instead boosting their emergency funds so they have more near-term cash to access in a pinch.
Having extra cash on hand is a smart thing to do during a recession, so it’s not surprising that 29% of Americans say they’re now holding more cash or liquid assets than they were before the COVID-19 crisis, according to a recent survey by Personal Capital. And if your income is holding steady in the course of the pandemic, it pays to consider boosting your immediate cash reserves, too.
U.S. unemployment levels have skyrocketed during the COVID-19 pandemic, and with jobless claims rising over the past two weeks, it’s clear that things aren’t on the cusp of improving. And that’s just one reason why it pays to have extra cash on hand in the coming months.