How To Build An Emergency Fund
November 19, 2020 | Peyton Sawyer
Among all the most commonly given pieces of financial advice, somewhere at the top of the list is always to build an emergency fund. People might disagree on how big that fund should be; some claiming it should be enough to pay for three month’s worth of expenses, while others say it should be even more significant, large enough to cover a few years. Still, everyone agrees that you must have money set aside for emergencies, regardless of how big you make that fund.
Unfortunately, it’s not always clear how you should go about building that emergency fund for yourself. No worries, though! That’s what we’re going to help you figure out in this article. We’ll also cover how you can secure the best payday loans in SC.
Budget For Emergencies
At this stage, you probably understand the importance of having a budget. But did you know that it’s also a good idea to budget for emergencies? That’s right! To figure out how much you should keep in your emergency fund, you can start by estimating the cost for different types of emergencies. For example, you can talk to your mechanic to figure out how much it would cost to fix common problems in your car. Of course, you can’t always get it 100% right, but an estimate shouldn’t be too difficult to calculate.
Continually Add To The Emergency Fund
One thing that discourages people from building an emergency fund is that it involves saving a lot of money. What they forget is that you don’t have to gather all of that money at once. Instead, you can build your fund gradually by putting money aside every time you get paid. So, before your weekly or monthly paycheck comes in, decide how much you’ll set aside for emergency purposes.
Save Your Change
Never underestimate the value of spare change! Instead of giving away your coins and small notes, keep them aside in a piggy bank or a container of some kind. You can collect spare change from everyday purchases, or even by digging through your sofa cushions (you know there’s some in there!). Over time, all that small change adds up to big numbers that you’ll find useful during a financial emergency.
When you’re in a situation where every dollar counts, your spare change could be a lifesaver!
Automate The Saving Process
Quite often, banks and other financial institutions allow you to automate the saving process. You could put in a standing order for them to set a certain amount of your money to a different account every month. When you automate the process, the money that you put aside will be out of sight and out of mind so that you won’t miss it. When you need to tap into your emergency fund, you’ll be pleasantly surprised by how much additional funds you forgot you put into the account!
Set Up Rules For Using Your Emergency Fund
Whenever you build an emergency fund, you must also learn to respect it. You see, putting money inside the account isn’t the hard part. The challenging part is resisting the urge to use that money for what might not be a real emergency. So, set up some rules ahead of time to determine what situations when you can or can’t use your emergency fund.
If you ever find yourself facing a challenging situation, but you want to try and avoid tapping into your emergency fund, you could use a payday loan as an alternative. These fast loans offer loads of benefits to help you through tough times which include:
- An application process that is simple and fast
- We welcome all credit scores
- Same-day cash
What does this application process look like? Here are three basic steps for what to expect while applying for a payday loan:
- You fill out a short form on our homepage and receive a call to schedule a meeting. You’ll be asked to provide a few pieces of information for your meeting, which includes:
- Your driver’s license
- Your most recent paystub
- A blank check to your checking account
The approval process won’t take long, and neither will the disbursement of funds. You’ll get the money you need without delay so that you can sort out your financial needs without unnecessary delays. When you get that money, you can use it for anything you need to, including emergency travel, a medical bill, or emergency repairs.
When you apply for a payday loan with us, you’ll find that their friendly and knowledgeable staff will go the extra mile to help you from start to finish. When you’re facing a challenging situation and need to borrow money quickly, you’ll find that you’re always in good hands when searching for payday loans. Apply today.