How An Emergency Cash Fund Can Give You Financial Peace
January 28, 2021 | Emma Frost
No matter who you go to for financial advice, the first thing they’ll suggest is to get an emergency fund. While different financial experts have different views on how much money exactly you should be keeping in the said emergency fund – they all agree that the first step to building your financial security is having possible emergencies taken care of.
If you do a bit of research you’ll find many experts warn against underfunding; your emergency fund should be enough to cover said emergencies, you shouldn’t be scrambling around to add more money to it if you find yourself hit with extra bills.
But those same experts say not to over-fund since your emergency fund should be easily accessible at all times. This means even if you put the money in the high-yield savings account, you could still be earning more by investing it or adding it to your 401K contributions.
The most popular yet not universal opinion seems to be the one that calls for keeping enough money in your savings that you could comfortably cover between 3 to 6 months’ worth of expenses.
But what exactly are the benefits of the emergency fund to keep so much money just lying there? Especially if you could always come up with a few hundred dollars to, say, take your car to a mechanic.
Do you really need an emergency cash fund for peace of mind? Our answer is a resolute yes. And here are just some of the reasons why.
1. A Well-Funded Emergency Fund Reduces Stress Levels
Money is the number one reason for stress in the world these days. Not only does it affect a person’s day-to-day life – heightened anxiety levels, heightened chances of insomnia, mood swings, and emotional instability – but their interpersonal relationships as well; it seems as if financial instability is the leading reason for divorces these days.
Having a 6-months’ worth of expenses squirreled away doesn’t just give you the knowledge that your car could break down tomorrow and you’d be able to handle it without much hassle; It gives you a solid foundation to stand on even if you suddenly lose your job. This is especially important in the midst of the economic recession we’re experiencing right now.
Consider all the people who’ve lost their jobs due to the pandemic. Now consider how they’d handle it if they had at least 6 months’ worth of expenses covered beforehand.
2. It Lets You Put Your Well-Being First
If you’d find yourself unable to handle your job anymore due to physical strain, mental stress, or bad interpersonal relationships – would you be able to quit? The answer is likely no.
The majority of Americans live paycheck to paycheck. And if you’re one of them, you likely aren’t able to leave your job without serious repercussions like not being able to pay your rent or mortgage and risk getting evicted.
Having the money to cover your expenses even with no active income gives you more control over your life – change your job if you want to, keep a part-time position, or even just drift for a while if that’s what your mental and physical health requires.
3. An Emergency Cash Fund Can Save You From More Debt
If there’s something 2020 taught all of us it’s that no matter how solidly you think your financial standing is, things could abruptly change with no warning at all.
Being hit by financial emergencies if you have no money can be hard to deal with – especially if you have no way to come up with cash fast. Especially considering that postponing dealing with them can cost you even more money down the line.
So consider setting up an emergency cash fund if you’ve yet to do so. Because without it, you might have to resort to taking out loans to deal with emergencies.
Do Payday Loans Help If You Have No Emergency Fund?
If you need immediate financial assistance, then fast payday loans could be an optimal choice for you since they’re easy to acquire. A payday loan bridges the gap between your pay periods at work. So if you are in between paychecks but experience an emergency, you can use the payday loan cash to help.
So if you are asking yourself “how does a payday loan help if I don’t have an emergency cash fund?” Well, if you are dealing with things like sudden damage to your home or car, you have trouble making the rent, or you need to pay late utility bills, the quick cash can help.
How Do I Find Payday Loans?
You can easily go through our process because it is streamlined to make it as convenient as possible. Just begin the application by going to our website and filling out the form. You’ll be contacted by a store representative who’ll set up a meeting at your nearest Florida payday loan near me location.
At the meeting, you’ll need to provide them with your valid government-issued ID since you must be over 18, your most recent pay stub, and a blank check from an active checking account in your name. The representative will assess your documents and determine if you qualify for the loan. If you’re approved, you’ll get the cash the very same day.
So, as you can clearly see, having an emergency cash fund is something pretty important. But, if life catches you without an emergency cash fund – no matter how important they are – there is a way to get by with the help of payday loans in Florida.