The Secret For Building An Emergency Fund
June 10, 2021 | Daniel Dewitt
If you’ve yet to consider building an emergency fund, now is the time to start. Having an emergency fund is important when you have an emergency suddenly hit you. Of course, you could take out title loans for help, but it’s always beneficial to have an emergency fund.
Building an emergency fund is the most surefire way of avoiding going into a money hole if you’re hit by an emergency expense. Did you know that most Americans wouldn’t be able to cover a $400 expense out of their pocket?
And sometimes that’s okay – when the problem isn’t pressing and you have time to save cash up. But if you’re dealing with something time-sensitive – a medical emergency, unexpected move or travel, urgent repairs, even something as common as overdue bills – saving cash up often isn’t an option.
Building an emergency fund means you will always have a safety net that makes it possible to handle these types of expenses without resorting to any outside help. And it’s much easier than you might think! All you need to succeed in building an emergency fund is to follow a few fundamentals.
Use These Tips To Build Your Emergency Fund
1. Start Small And Increase Gradually
You don’t have to start building an emergency fund big. While many financial experts suggest that you should be putting 20% of your income into savings – making that big a jump won’t be easy if you’re living paycheck to paycheck.
Instead start small, say with 5% - to get used to the idea of saving first. The gradually increase the amount you save in several months. And then again and so on until you go up to 20%. Will this prolong the process? Yes, but it will let you optimize your budget and find what works for you without much pressure.
2. Automate Your Transactions To Curb Impulsive Spending
Building an emergency fund will be much easier if you automate your savings. Just have that 5%-20% of your paycheck transferred into a savings account as soon as you hit. Here’s why: spending money is the easiest thing in the world.
You’ll find multiple things more appealing to spend money on than building an emergency fund.
This “voluntary pay cut” will help you with prioritization. You may want to buy something new instead of dropping money into savings – but automatic transactions won’t allow it. Money simply won’t be there. So adjusting your priorities and budget will become a must – like it or not.
3. Be Consistent
Building an emergency fund is a prolonged process. There’s no way around it. You won’t be able to fully fund it from just one – or even ten – paychecks. It doesn’t even matter how much you make, because the optimal amount of emergency funds depends on one’s expenses. There’s no specific ideal number you’ll find somewhere on the internet.
If you start building an emergency fund, you should be ready to make certain sacrifices for it. Buckle down, curb your spending, and be ready that it’ll take some time.
4. Know The Final Amount You’re Aiming At
Most financial experts agree that there’s no one ideal amount for an emergency fund – but 6 months’ worth of expenses comes pretty close. It’s a balance between saving too little and too much.
And yes, as weird it may sound, you can have too much in your emergency fund. That’s because an emergency fund is savings you aim to spend short-term. If you save too much, that’s money that could be going to the long-term goals – like retirement or investments – which makes keeping it in an emergency fund somewhat wasteful.
Use Title Loans For Quick Help
If you’ve yet to – start or are only now – start building an emergency fund, chances are what you’ve saved up isn’t enough to handle emergencies yet.
In that case, you might want to look into title loans. Title loans use your vehicle’s title as collateral for a lump sum of cash. They are an easy, accessible option for those who need cash on short notice. Another plus is title loans from Fast Auto Loans, Inc. let you apply regardless of what your credit looks like.
You need to be a legal adult at 18 years or older and own your car. Your title must also be lien-free – which means your title must be free of outstanding liens or judgments. If you do get approved, you could get up to $15,000 the next bank business day at the latest.
How To Get Title Loans In Arizona
Getting started with the title loans process is simple. Here’s what you’ll need to get through the process:
- A state-issued ID or driver’s license to prove you’re over 18;
- A lien-free car title in your name to prove car ownership;
- The car in question to determine the maximum loan amount you qualify for.
After getting everything in order, just submit a filled-out online form on the website and wait for a loan representative to call you. They’ll provide further instructions and schedule an appointment for you either at a location of your choosing or at the nearest title loans location.
Take the required items to the appointment. The loan representative will inspect your vehicle and your other items to determine if you qualify for the loan and how much you could qualify for.
If approved, they’ll walk you through the paperwork and go over your loan terms. Once everything is signed and completed, you’ll get the cash either on the same day or the next bank business day at the latest.
Build Your Emergency Fund Or Look Into Title Loans Today
It is never too late to start building your emergency fund. Don’t wait till you are hit with an emergency to start building. And if you are hit with an emergency, look into title loans from Fast Auto Loans to help. Fill out our online form when you are ready to start.