If doing less means savingmore, try these 5 money moves

The coronavirus has upended countless jobs, schools and bank accounts. But while undoubtedly more people are struggling than not, those who are still working may have seen their expenses actually drop due to canceled travel, limited dining options and more time at home.

If you’vemanaged to end up with extra money during 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 contingency fund should be three to sixmonths of expenses,” says Tara Unverzagt, certified financial planner and founder of South Bay Financial Partners in Torrance, California. “I would bulk it up evenmore because of uncertainty. I’ve never known anyone to be upset because they had too much cash, but have known lots of people who were upset they didn’t have enough.”

That level of savings is a stretch goal formany people; an extended period of reduced expenses may provide you with the opportunity to finally reach it. Establishing an emergency fund is one of the best things you can do for your future self, and if you put it in a high-yield online savings account, it will benefit froma higher interest rate than a regular savings account.

You don’t want to invest your emergency fund because your primary goal for that money is accessibility, not growth. The stock market goes up and down, and there’s a real risk that it could go down just when you need themoney. At best, that could mean having to sell your investments at a loss to pull cash out. At worst, it could mean your money won’t be there when you need it most.

2. Invest for retirement

If you haven’t ventured into the world of investing yet, it may feel like a scary time to start given all the volatility in the market lately. The good news is that volatility doesn’t cause much harm when you’re investing for a long-term goal like retirement: The peaks and valleys due to the coronavirus will likely appear much smaller over time.

If you haven’t started investing, there are two easy jumping- off points: your employer’s 401(k) if it offers one and an IRA. Both are accounts that can help you invest for retirement with some tax benefits. Roth IRAs, for instance, allow your money to grow and be taken out in retirement tax-free.

Even if you’re already contributing to a 401(k) or an IRA, you may want to consider upping that contribution. Every extra bit you can put toward retirement goes a long way. Let’s say your reduced expenses mean you can save an extra $500 a