One thing that’s almost certain in life is from time to time you’ll find yourself in an emergency situation. Your car might suddenly break down, or you’re involved in an accident and need medical attention. Other financial decisions emergencies could be bills that you didn’t anticipate or something that you urgently have to replace.
In this post, we’ll be looking at some tips and sound financial decisions you can make so you’re prepared for those uncertainties and emergencies that life can throw your way when you least expect it.
#1 – It’s Always Wise To Have Some Savings
If you’re living from payday to payday, saving money can sometimes be hard to do, but even if you can put away just a few thousand dollars over time in case of emergencies, then that will be a huge weight off your shoulders. You’ll have peace of mind knowing that you have some cash stashed away for when you really do need it.
There’s nothing worse than when something unexpected crops up and you have no spare money to cover the cost.
#2 – An Emergency Credit Card Can Save the Day
A secondary option to having savings on hand in an emergency financial decisions situation is to get yourself a credit card with a small limit of just a few thousand dollars. While credit isn’t always ideal, it’s still nice to know that you have that card if you really find yourself in a financial crisis & require money quickly.
If you are disciplined and save that credit card for emergencies only, then you won’t have any monthly bill or interest payments to make unless you absolutely need to use the card.
#3 – Fast Cash Loans Can Really Help
We’re not talking about applying for a personal loan from one of the major banks here, as the process is often far too slow when you need the money now. Instead, some independent lenders provide small, fast cash loans as the perfect solution when an emergency arises. For example, one such company is Sunshine Loans, and there are others as well.
These companies specialise in providing quick finance solutions, where applications can be completed entirely online and often you’ll receive the money on the same day or the very next day. Terms and conditions are straightforward and transparent, and small loans of up to $2000 are easy to repay.
#4 – Formulating a Household Budget and Sticking To It
In order to be able to save money in case of emergencies, it’s vital that you create a household budget that’s doable. If it’s not feasible, then chances are high you won’t be able to stick to it, and your saving’s plan will suffer or not happen at all.
It might also be a sound idea to prioritise items on your budget list. Perhaps the budget could be split into two sections, with the first section being for essential expenditure, while section two is filled with more optional or flexible monthly or weekly expenses. This way, you can determine how much you have to spend at a glance, and what things you might be able to cut back on during that month.
#5 – Find a Second Income Stream
This could be a part-time job, a small sideline business venture, or even something you can do online in your own time. Even if this second income stream only produced an extra $100 per week, if you reserve this income solely for your emergency savings fund, then that’s $400 you can add to that fund every single month.
Just a small supplementary income stream can give you peace of mind.
#6 – Live Within Your Means: For Now
This point ties in with the section on creating a budget and sticking to it. If you have a finite amount of money each month, then you’ll need to live within your means, so you have some cash leftover for your emergency fund.
Over time, if you manage to increase your monthly income, then you can loosen the drawstring a little and spend a little more, as you’ll still have your savings covered, along with more disposable income.