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business Tuesday 8 sepTember 2020
If doing less means saving more, try these 5 money moves

By ALANA BENSON of Nerd-
Wallet
The coronavirus has upend-
ed countless jobs, schools
and bank accounts. But
while undoubtedly more
people are struggling than
not, those who are still work-
ing may have seen their ex-
penses actually drop due
to canceled travel, limited
dining options and more
time at home.
If you've managed to end
up with extra money dur-
ing the pandemic, here's
how to take advantage of
those savings.

1. START OR FILL OUT AN
EMERGENCY FUND
2020 has served as a stark
reminder that unexpected
things can happen, and
when they do, it's a good
idea to be prepared.
"We say if you have a
steady job, your contingen-
cy fund should be three to
six months of expenses,"
says Tara Unverzagt, certi-
fied financial planner and Passers-by walk past an empty restaurant, left, Wednesday, Sept. 2, 2020, in Boston.
founder of South Bay Finan- Associated Press
cial Partners in Torrance,
California. "I would bulk it up retirement and you earn savings account). On the quidity, meaning you can
even more because of un- 2. INVEST FOR RETIREMENT a 6% return, that $6,000 other hand, if you're start- sell them with relative ease.
certainty. I've never known If you haven't ventured into you invest could add over ing a college fund for a
anyone to be upset be- the world of investing yet, it $34,000 to your retirement newborn, that money will 5. GET SOME HELP
cause they had too much may feel like a scary time balance — a significant have approximately 18 When you suddenly find
cash, but have known lots to start given all the volatil- boost. years to take advantage of yourself with extra money,
of people who were upset ity in the market lately. The And because you can al- the market's returns. it can be difficult to figure
they didn't have enough." good news is that volatility ways change how much If you've found yourself in out the best way to put it
That level of savings is a doesn't cause much harm you're contributing, you a position of privilege dur- to use. Financial advice
stretch goal for many peo- when you're investing for can decrease the amount ing this global pandemic is widely available these
ple; an extended period a long-term goal like retire- you're putting toward re- and have been able to days, and it's often inex-
of reduced expenses may ment: The peaks and val- tirement if and when your save some extra money, pensive. Online financial
provide you with the op- leys due to the coronavi- spending habits return to you may also want to con- advisors and robo-advisors
portunity to finally reach it. rus will likely appear much normal. sider increasing your chari- have brought the cost of
Establishing an emergen- smaller over time. table contributions. Keep in investment management
cy fund is one of the best If you haven't started in- 3. SAVE FOR NONRETIRE- mind, you may be able to and financial planning
things you can do for your vesting, there are two easy MENT GOALS deduct your charitable do- down significantly, and
future self, and if you put it jumping-off points: your Retirement is a common nations when tax time rolls both are good options for
in a high-yield online sav- employer's 401(k) if it offers goal, but it likely isn't the around. when you're feeling lost.
ings account, it will benefit one and an IRA. Both are only one you have. If you're These advisors can also
from a higher interest rate accounts that can help on track for retirement, con- 4. EXPLORE REAL ESTATE IN- help you stay hands-off
than a regular savings ac- you invest for retirement sider putting extra funds to- VESTMENTS with your portfolio during
count. with some tax benefits. ward other things: college If you're interested in invest- turbulent times in the mar-
You don't want to invest Roth IRAs, for instance, al- for your kids, a new car or ing in real estate, you don't ket by ensuring that your
your emergency fund be- low your money to grow a dream vacation (which have to start renovating investments are aligned
cause your primary goal and be taken out in retire- you'll have plenty of time to an old barn or putting up with your risk tolerance.
for that money is accessi- ment tax-free. save for, since most people shiplap. One of the easiest Robo-advisors offer invest-
bility, not growth. The stock Even if you're already con- aren't traveling right now). ways to invest in real estate ment management and
market goes up and down, tributing to a 401(k) or an Investing can help you is to invest in real estate in- typically charge between
and there's a real risk that it IRA, you may want to con- achieve those goals faster vestment trusts. REITs are 0.25% and 0.50% of your as-
could go down just when sider upping that contribu- than just saving, but keep companies that own (and sets per year. If you need
you need the money. At tion. Every extra bit you can in mind that you generally sometimes operate) real assistance developing a
best, that could mean hav- put toward retirement goes don't want to invest mon- estate that generates in- more comprehensive fi-
ing to sell your investments a long way. Let's say your ey you'll need within five come, such as apartment nancial plan in addition to
at a loss to pull cash out. reduced expenses mean years. (Like an emergency buildings. Publicly traded investment management,
At worst, it could mean you can save an extra $500 fund, savings for near-term REITs are bought and sold it may be a good idea to
your money won't be there a month over the next year. goals should go into safer on exchanges, just like enlist the help of a financial
when you need it most. If you have 30 years until options, like a high-yield stocks, and have similar li- advisor.q