Have you faced financial emergencies lately?
The sad fact about emergencies is that you cannot predict them and however far you may try to be in them, you will surely end up in one sooner than later. So, how do you prepare for something that you cannot even predict or to say the least do not even expect?
The rule of the thumb which is waxed most eloquently by all elders and the finance gurus is that every month or every periodic paycheck, keep aside a sum of money that will be a buffering for a rainy day. We can guide you How To Plan An Event With No Money | TicketbudTicketbud Blog .
That piece of advice so often heard and ignored is something that is the most hard to follow. The over confidence that comes with the feeling that “oh! I am so set. Nothing can go wrong with me anytime.” is so convincing that we forget to adhere to the most basic of the financial advices that is most often handed over to us generously by each and everyone.
How you can be ideally prepared for an emergency:
While it is true that exigencies are hard to predict when they will strike, here is one way that we think will help you stay afloat when bad times cloud on you.
Always have a habit of maintaining a saving account, however small. The adage that every drop makes the ocean is so true here. Never underestimate the power of a single dollar. Someday, when the amount compounds you will be happy that you started somewhere!
It’s a great idea to stash away the cash in an account and exclusively reserve the credit card usage unless it is an emergency issue. You must exercise a lot of caution and discretion in calling an event as a disaster. Nevertheless, if it warrants that you spend from the reserve fund in case your credit score may get adversely affected, then go ahead!
This one can be a spoil-sport. But if you want to tide over any bad days, this is the best approach to take. Maintain a priority list of expenditure where the most necessary and the primary expenditure will take the first call. The rest can wait till you have enough liquidity at hand.
This tip can save you a lot of embarrassment especially when the exigency is concerning a loss of your job. You can at least live a dignified life till you find yourself another means of livelihood!
When you draw a monthly budget for yourself, you are not only making a list of your expenses across your income but you are also simultaneously prioritizing your spending. It gives you a clear idea about your assets and liabilities and also a perfect picture of your net worth. Try it, you will never regret!
Payday loans for you:
A payday loan is in the simplest terms a short term loan where the period of closure of the loan will be ideally within that year itself. The rate of interest is generally quite high compared to other traditional loans. Even though it is a short term loan, the rule of checking the credit worthiness of a person is almost always given a go by. However, certain new rules that have been introduced by certain consumer forums of some countries insist that the lenders do a preliminary background check on the borrower for his ability to pay back the loan.
Why you must not rush in for a payday loan:
Even though the payday loan is tempting and easy and quick, you must be wary of applying for such a loan often unless there is an emergency like medical expenses or household repairs that cannot wait. This is also recommended when you apply for other kinds of finances including quick loans.
It is very important to evaluate whether the emergency at hand is worth borrowing this kind of a loan because of the extremely high rate o interest that you will pay on the loan amount borrowed.
Step back and think two times before borrowing a payday loan because of its nature of being a short term loan, the repayment date can come in front of you before you can wink. By all means, go for one if you think that there is no other way than to borrow it but don’t ever borrow for over spending or for frivolous expenditures or for something that can wait till your next paycheck arrives!