Top 6 Lessons About Financial Emergencies
September 4, 2020 | Daniel Dewitt
Life is full of hard taught lessons. Each wave or emergency we crest teaches us how to handle the next, even if it’s at a high cost. After all, mistakes are the best teachers; they’re hard to forget, and often make clear where we’ve been slacking or going wrong in life. But mistakes are painful to go through and something we almost universally all want to avoid.
This duality is frustrating, but what if there was a way to get one without the other? To get the lesson without the cost? That’s what we’re here to do today. We’ve gathered together 6 of the top lessons you should know about financial emergencies.
Having an Emergency Fund Makes them Easier
The idea behind an emergency fund is simple. Essentially all they are are dedicated saving accounts where you deposit a little money each month so that when an emergency hits you have cash on hand to deal with it. Studies show that most Americans only have around $400 to handle any emergencies that spring up, so having a dedicated savings can help immensely.
A Payday Loan Can Help A Lot
Payday loans are fast, short term loans that are ideal for dealing with emergencies. Payday loans in South Carolina can net you up to $500, and unprecedentedly fast to take out: often payday loans in South Carolina can be obtained in as little time as a half hour starting from stepping into a payday loan store. If you want to get started, the easiest way to obtain payday loans in South Carolina is simply to fill out the online request form you can find at the top of this page.
Know What You Own Can Be Sold Quickly
Another way of obtaining cash in an emergency situation quickly and cleanly is by pawning or selling items you own. Often our possessions hold more value than we realize, and that value can be converted into cold and hard cash by selling it. Obviously you shouldn’t do this for truly vital items like your car, but jewelry or electronics you don’t use anymore can be pawned for a pretty penny. Even something as simple as garage sale can also net you a fair point to deal with a financial emergency.
They Can Have a Long Tail
What do we mean by a long tail? Simply, that while a financial emergency can have disastrous short term effects, even if you’re able to handle it you may not be prepared for the equally difficult long term effects.
Take the example of an emergency room visit to the hospital. Not only will it be hugely expensive for even a short visit, there’s a reason healthcare costs are the #1 cause of bankruptcies in America, but the follow on costs can be quite high. You’ll be stuck paying the bill for months, and if you’re too slow the hospital will send it to a debt collector that will harass you in increasingly aggressive ways.
Worse even than that, if what caused you to visit the emergency room is a long term health condition you could spend years slowly shelling out increasingly large chunks of your savings to deal with it.
Keep Calm and Carry On
One of the hardest things in an emergency is to remain level headed and logical and not succumb to panic and stress. Panicking can make emergencies severely worse by causing you to make counterproductive decisions based in emotion and not rational analysis of the situation. Even something as simple as just taking a breath to calm down can be hugely useful and improve whatever emergency you find yourself submerged in.
Insurance is Hugely Useful
Insurance can provide a vital lifeline when emergencies hit. It’s a bit of an investment upfront, but one that you’ll be absurdly grateful for if you end up in the emergency room, or your car totalled. It is, after all, designed to minimize the damage from exactly those kinds of financial emergencies. Why not let it do its job?