A final element of organizing your finances is saving. I thought I’d spend some time talking about the different kinds of savings and then make some suggestions:
The first two are the most critical in the short-term. They help you get by when things get bad – like now. If you get furloughed, they will keep a roof over your head and food on the table. If you are still working and don’t have those kinds of savings, start putting away every extra cent that you can. If you are not working, don’t be afraid to use these savings to cover essential expenses. That’s why you saved! If you are not working for an extended period of time, you may need to tap into your savings for a vacation or a car. You may even have to temporarily suspend saving for college or retirement. You can get back to regular savings when things are more stable.