Budgeting And Saving Towards An Emergency Fund

Building an emergency fund is one of the pillars of personal finance. You can rely on Nevada Title and Payday Loans, Inc. to bridge the gap if that fund falls short. Here, you can apply for one of several quick and easy loans to help as you save towards a fully funded emergency fund.

You can apply for unsecured loans like payday loans or installment loans to get quick cash to support your emergency fund. You can also get a secured car title loan to potentially qualify for a larger amount for bigger emergencies.

Read through this article to understand how to budget and save towards an emergency fund and why it matters. Then, learn how the quick loans mentioned above can help if your emergency fund isn’t enough to solve the problems you’re struggling with.

Why Is It Important To Have An Emergency Fund?

Before you begin the long journey of building an emergency fund, you must first be crystal clear on why it matters. Having that ‘why’ in your mind will help you get through the challenging times when it might not seem like a worthwhile idea.

Simply put, you must budget and save towards an emergency fund because it places a financial buffer between you and life’s challenges. When you have that buffer, anything that might seem like an emergency is reduced to just being a minor inconvenience.

For example, you can pay off an emergency medical bill or repair cost immediately if you have a big enough emergency fund. The sooner you’re able to solve your problem, the less stress and anxiety you’ll experience overall. So, everyone should have an emergency fund regardless of who they are and regardless of if that fund is big or small.

How Much Should You Have In Your Emergency Fund?

The rule of thumb is that an emergency fund should be at least 3-6 months of your regular expenses. That amount should be doubled to 12 months if you are in a precarious work situation, like if you’re self-employed or run your own business.

Remember, there are no fixed rules about how much should be in your emergency fund. You can make it as big as you like as long as your other financial priorities are also being met.

How Do You Save For An Emergency Fund?

If you don’t have an emergency fund right now, the best thing you can do is save every extra cent you have until you have a fully funded emergency fund. As you read earlier, that could be anywhere from 3-12 months' worth of expenses, depending on your situation.

Beyond that, you can allocate a smaller amount of your regular income towards emergencies. Setting 10% of your paycheck aside for emergencies will help the fund continue growing while leaving plenty of money over for your other needs and wants.

What Do You Do If Your Emergency Fund Isn’t Big Enough?

Whether your emergency fund is small or large, one thing’s for sure: there are some situations where it won’t be enough. That’s a reality for everyone, and you must be prepared for it.

Thankfully, there are ways to borrow money quickly to help you pay for emergencies when your saved money isn’t enough.

Here are 3 helpful options you can consider:

• Installment loans: Your first option is an installment loan through which you can borrow up to $1,500 without providing any collateral.
• Payday loans: If you only need to borrow a smaller amount, you can also consider a payday loan. This type of loan could give you access to up to $500 when you need it quickly and with little or no fuss.
• Car title loan: Lastly, if you own a car and need to borrow more money, you have the option of using a car title loan. This is a secured loan that uses your lien-free car title as collateral to secure an amount of money based on the vehicle’s value.

These three types of loans have several things in common that make them a useful option to support you in an emergency.

First, they’re easy to apply for with minimal requirements to fulfill. On top of that, they’re also quick to get, with an in-person application that could take as little as 30 minutes to finish.

Last but certainly not least, these loans pay out quickly if your application is approved. If everything goes well, you could get the money as soon as the same day of your application or by the next business day.

The bottom line is whichever option you choose could put money in your hands in minimal time, helping you resolve your emergency quickly.

Start Now!

So, if you ever run into financial trouble that’s too big for your emergency fund to handle, get in touch with Nevada Title And Payday Loans, Inc. You can get the ball rolling just by submitting the online form with your basic information.

Soon after that, a helpful representative will call your number to discuss your financial challenges and help you apply for the most suitable solution. Then, you’ll be on your way toward getting the loan you need!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.