Strategies for Rebuilding Finances

Financial Rebuilding After the Pandemic

The economy is improving with more people returning to the workforce and earning better wages. But that does not mean the financial malaise of the COVID-19 pandemic is over. After all, 373,000 people filed for initial unemployment claims last week and 3.34 million people are still receiving unemployment benefits.

Millions of Americans are struggling to get back on their feet and to rebuild their finances after months of shutdowns and unemployment. For the latter group, they have to take steps to get back on their best financial footing. From rebuilding emergency savings to conducting a budget check, here are some steps to consider.

Rebuild Emergency Savings

Rebuilding an emergency fund should be a top priority. If calamity strikes, individuals have to ensure they have enough money in the bank to cover expenses. The general rule of thumb is to have three to six months of expenses in an emergency fund set aside for a rain day.

In addition to shoring up emergency savings, paying down high-interest-rate debt should also be on the top of the list of ways to improve finances. That is particularly true of individuals who relied on credit cards to survive the pandemic.

Rethink Spending

As the economy recovers from the pandemic, inflation has been rising, which means prices for everything from milk to lumber are higher. As a result individuals want to revisit their budgets to ensure their spending matches the current cost of living. That means factoring inflation into the budget. It is also important for people to resist the temptation to overspend amid excitement about the pandemic coming to an end.

Vaccinations are widely available and the job market is improving as millions of people return to work. Rebuilding finances requires a plan that includes shoring up savings, paying down debt, and factoring the costs associated with daily living.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.
Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender