How To Survive Any Financial Crisis With A Financial Safety Net
November 3, 2020 | June Mckaig
Just like fire drills and earthquake drills, or the safety demo on a plane, you need to have a plan for financial emergencies. Anything can happen at any time. And while we hope you’ll always enjoy a steady income, knowing that you can handle unexpected expenses can help you sleep better at night. Here’s a simple checklist to help you prepare for any possible financial emergencies.
Create A Solid Plan With These Tips
Have A Liquid Savings Account
You need to be able to access cash quickly at your moment of need. Aim to have at least three months’ worth of living expenses in a savings or checking account. Ideally, this should be separate from the money you use for expenses, so you aren’t tempted to dip into this fund.
Build your rainy day fund. Set a monthly or quarterly savings goal and transfer it diligently. If you can, link the two accounts and arrange for money from your salary to be automatically transferred at each payday cycle.
You can also put your rainy-day fund in money market accounts, certificates of deposit (CD), and short-term investments. These have a steady value that won’t be severely affected by global economic fluctuations.
Only invest in stocks, property, index funds, or other financial instruments when you already have a sizeable liquid fund. These can give a higher yield, but also higher risk. Furthermore, they take more time to mature and are difficult to liquidate at a moment’s notice. In some financial emergencies, time is of the essence. You may need cash the same day, or even within a few hours.
Create A Budget
When you’re earning a lot of money, you won’t think twice about eating out or the occasional online shopping splurge. While there’s nothing wrong with enjoying your hard-earned money, it’s still important to follow a basic budget.
Write down your regular expenses like rent or mortgage payments, utility bills, gas, groceries, entertainment, etc. Some items may be fixed – like rent – and others may fluctuate – like groceries and entertainment. For the variable expenses, you still need to set a maximum amount. You can change it according to the month; for example, it’s natural for entertainment expenses to increase during the holidays—but at least set some controls so you don’t end up spending more than you can afford.
Your budget should include savings for your rainy-day fund or savings for bigger future expenses like trips or your retirement. If you have children, you should also set aside money for college funds.
Try To Increase Your Sources Of Income
It never hurts to have various sources of income. Take a part-time job, start a simple business that you can run in your free time. Think of other ways you can raise money. Things like garage sales, buying and selling products online, renting out a room in your home, etc.
Also, invest in projects or learning opportunities that can increase your “marketability.” For example, take an online certificate course that will help your career. Or take a free technical skills class in your community center. Join events where you can build your network. All of these can be very helpful in case you need to look for another job.
Check Your Insurance Coverage
Health insurance can help cushion the cost of medical expenses or loss of income because of an accident or disease. Depending on your assets, you may need to also get home insurance and car insurance.
Need Help Surviving A Financial Crisis? Use Title Pawns And Payday Loans
Here in Alabama Title Pawns, we offer two forms of help in times like these: title pawns and payday loans. A title pawn – similar to title loans in other states – allows you access to quick emergency cash by using your vehicle’s title as collateral. Now, in contrast, a payday loan is a short-term, unsecured loan that is designed to help you while you are in between pay periods at work. Unsecured means you do not need collateral to qualify for this kind of loan.
Advantages Of Title Pawns And Payday Loans
- The application process for both is quick and easy;
- We won’t turn you away due to poor credit;
- You will get the money quickly if you are approved for either;
- Payday loans don’t require collateral;
- You can use the cash for unexpected situations or emergencies.
How To Apply For A Title Pawn Or Payday Loan
Applying for either a title pawn or a payday loan is simple. Just look for ‘title pawns near me open now’ and you’ll see every location we have available to you.
The process begins with you filling out the online form. This form lets us know which one you are going for – either payday loans or title pawns – and gives us your basic information. As soon as we receive it, you will get a phone call from the nearest Alabama Title Pawns to confirm your information. We will also tell you the required items you have to bring in with you and how the rest of the process will go.
For a title pawn, you must have with you your ID or driver’s license, your vehicle’s lien-free title in your name, and your vehicle. We will do a quick vehicle inspection to find out your vehicle’s value and condition. Both these factors help us determine how much you qualify for. Coming to see how much you would qualify for is absolutely free; so you can check if you are curious.
For payday loans, you need to bring in your ID, social security card, a recent 30-day bank statement from your checking account, a blank check from an active account, and your most recent pay stub. We will examine these items and determine how much you qualify for and if we can approve you.
Once you are here, a loan associate will sit down with you. For either the loan or the pawn we will go over your items and go over the loan agreements. If everything checks out and we can approve you for whichever one you are applying for, you can sign the agreement and we will hand you the cash.
Remember These Tips For Your Next Financial Emergency
Emergencies happen to us all at the worst possible time. Sometimes we are prepared, but sometimes they catch us completely unprepared. That is why it is important to remember these tips to come up with a financial safety net. Be as prepared as you can you’re your well thought out plan.