Blog

03Nov2017

Tips for Creating an Emergency Fund

Emergency funds, also often called “rainy day funds,” are something that everyone should have. At any time, you could be struck with an unexpected misfortune and need extra cash to fix it. Whether it’s a medical bill you didn’t expect, an employment problem, or a break-in, you’ll need to be able to step up to handle the situation when it arrives.

There are many people, however, who don’t have such a fund stashed away, and when the time comes that they need a financial cushion, it becomes ruinous. How can you save for an emergency fund if you live paycheck to paycheck? Here are some important tips, tricks, and pieces of advice to create an emergency fund and how, when you need emergency funds, a cash loan can help.

Prioritize Savings

The first thing you need to do is make saving a habit. With every paycheck, immediately put a set amount of money away after you pay bills, but before you do anything else. That money is then no longer available. Don’t dip into it when you’re out of money and you want to go to a movie. Pretend it’s not there until a real emergency crops up. You’ll be surprised at how fast that amount grows.

Save Your Windfalls

When you get your annual tax return, instead of spending it on a new TV, store it away for your emergency fund. Any rebate check you get, it goes into your savings. Cash bonuses from credit cards? Cash them in and put them in your savings. You get the idea—cash bonuses can be a lot of fun, but if you’re trying to build a rainy day fund, they can also be your best bet for savings.

Start Small and Build

You don’t have to build that fund right away. If you can only put ten bucks away, do it. If you put ten dollars a week in a savings account, in two years, you’ll have over $1,000 squared away. As you can, add more. Your fund will grow faster than you realize and, before you know it, you’ll have a comfortable nest egg put away.

Find Ways to Make More Cash

If you can work overtime, do so and put the extra money in your savings. If you have a skill that allows you to freelance, from writing to art to creating websites, do it and save the extra money. Sell some unwanted items online or at a local pawn shop. There’s a ton of ways to make some extra cash on a short-term basis that you can put away.

Consider a Cash Loan

Let’s say the unthinkable happens before you’ve got a nest egg or emergency fund put away. A small cash loan can be a great stopgap measure. It will allow you to get past this hurdle while you work on saving up. In addition, the payments you make will boost your credit score.

If you’re in the Las Vegas area and you’re in need of some quick cash, Koster’s Cash Loans can help. Read about who we are and what we do, and contact us to start your application today!

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