Top 6 Lessons About Financial Emergencies
September 3, 2020 | Emma Frost
We've all experienced a financial emergency at some point in our lives. Since they rarely strike at a time that is easy for us to handle, many of us are left scrambling to figure out a way to get extra cash quickly. When a financial emergency does strike, affecting our budgets and disrupting our ability to provide for ourselves and our families, what options do we have to handle our situation? And how can we better prepare for the future? If you're a Florida native, finding a solution to your financial conundrum is easy and I'll show you how. But first, here are 6 lessons that you can take from your financial emergency.
1. Try Not to Spend Everything You Make
The secret to any successful budget is the earner’s ability to spend less per month than what is being earned through paychecks. While this seems like a simple idea, many of us struggle to keep our monthly bills manageable which causes many of us to live each month paycheck-to-paycheck. A financial emergency can provide perspective into where your money is being wasted each month, particularly if you struggle with making ends meet. Use a financial emergency to restructure your budget and see it as an opportunity to improve your situation.
2. Overconfidence Can Be Dangerous
Overconfidence when considering your budget is dangerous, especially in the event of a financial emergency, which can strike at any time regardless of whether or not you’re prepared to handle it. Extraneous costs can be easy to justify when you think you’re going to make the amount of money back with your next paycheck, but this mindset can be dangerous and it’s easy to keep justifying these costs, especially if they’re small.
3. Having Multiple Incomes is Important
Depending on the size of your income, it can be difficult to survive off of just one, which is why having two sources is an important part of protecting your ability to provide for yourself and your family. The good news is that you may not have to work two fulltime jobs. Even the income from a second, part-time position or side hustle can be enough to bolster your emergency fund.
4. Automate Your Savings
Having money that transfers over into your savings account automatically is a great way to passively create a savings account for yourself. Financial emergencies are an opportunity to bring clarity to the way you structure both your budget and your savings. If you know you will struggle to transfer money into a savings account even if a financial emergency has proven to you the importance of building one up, automate your transfer. Not only can you control how much money transfers, but you can control the frequency, too.
5. Everyone Needs an Emergency Fund
Of course, you’ll notice your need for an emergency fund the minute you enter an emergency and don’t have enough money to handle your situation, but financial emergencies are a great opportunity to change your future situation, once you can handle your current one. Realizing you need to make a change is important, especially when it comes to your financial situation isn’t working for you. There are plenty of changes that you can make to grow your financial situation and if you’re curious about what you can do, check out this blog! In the meantime, what do you do when your budget isn’t large enough to free you of your emergency?
6. Take Note of Your Loan Options
If you find yourself in need of extra cash there are several options available to you, each with their own merits and downsides. Here are some of the more popular options that you’ll run into as you conduct your own research:
- Personal Loans: Personal loans are any loan that you can obtain through a bank but the approval for these loans is often based on your credit score or dependent upon you offering something up for collateral.
- Credit Cards: There are plenty of credit cards that come with a 0% introductory APR period, but the approval is dependent upon your credit score. Anything lower than either a good or an average could affect your ability to be approved.
- Borrowing Money From Family: Borrowing money from family members often allows you the chance to build a repayment plan that is convenient for you.
- Payday Loans: If all other options fail, payday loans are a loan option type that can help you, regardless of your financial history or emergency. Here’s how they work!
How Payday Loans in Florida Can Help You
Payday loans are a short-term loan option that specializes in getting you emergency money without the use of your credit score. Apply for these loans is simple, thanks to our payday loan online application which can be completed on your computer from the comfort of your own home. After submitting this form, one of our representatives will contact you to set up a face-to-face meeting during which you’ll have the opportunity to finalize your loan by presenting the following information:
- Your driver’s license of state issues I.D.
- A blank check from an active checking account in your name
- Your most recent pay stub
While the amount varies from person to person and is dependent upon your current employment, you could be approved for up to $1,000! The funds will be deposited into your checking account, ready for you to use. If all goes well, the entire process can take as little as 30 minutes. Don’t let your emergency determine your financial situation. Apply for a payday loan and let us help you take control of your situation so you can prepare for a better future.