HARLINGEN, Texas (KVEO) — After the holidays, money is tight for a lot of people. A financial advisor has ways people can spend their money in the new year by prioritizing bills and then build up their savings account.
Cecilia Valle, a financial advisor with Edward Jones, said last year the savings rate jumped up to 30%, due to people not spending as much as they normally would due to the pandemic.
However, as things start to open up it’s important to have a backup and set a goal in your savings account.
“Is that, moving forward prepared to always have that emergency fund with at least 6 months of living expenses. That is the best thing because even though a pandemic might be a rare occurrence there’s a lot of things that can throw us off course,” said Valle.
She goes on to say this will help when the next crisis might occur and the main thing to do in a crisis is to not overreact with spending and be patient with saving money. Adding, historically, building your savings could help in the long-term.
“When the pandemic hit the stock market plunged by the people who were patient, investors who were patient and stock around they were rewarded when the market bounced back so there is a historical pattern to a major crisis,” said Valle.
She advises remembering that a major crisis followed by a market drop is more than likely followed by a strong recovery.