Do you ever worry about being financially prepared enough to cover the demands of an unexpected, costly emergency? One recent study suggests that you’re completely validated in this concern. Findings from a 2015 Pew Research Study indicate that 54% of Americans don’t have the savings needed to cover financial emergencies.
While some financial planners recommend having at least three-to-six months worth of expenses in savings, these “rainy day” accounts don’t always include what may be needed to cover unexpected, unavoidable costs. Consider speaking with a financial adviser or using a savings calculator to determine how much money you should have in saved your emergency fund.
Sometimes no matter how diligent you are about setting aside money for emergencies, you can still find yourself in an unexpected financial bind. However, with the help of this go-to guide, you’ll know exactly what to do should you find yourself in financial shock.
Don’t panic
Being hit with surprise expenses often triggers one response: panic. Instead of assuming the worst and making impulse decisions, direct your focus onto the what, exactly, the problem is and the financial details involved. By taking the time to analyze the emergency, you can gain a better understanding of its monetary magnitude, as well as the options available to you. Consider following this “tuck-and-roll” timeline to getting out of a financial crisis:
Step #1: Identify the source of the problem. What’s demanding your fiscal attention?
Step #2: Make a detailed list of your expenses. Are you spending more or less on certain categories than you were in years past?
Step #3: Find areas of your spending that can be adjusted or eliminated. What are your priorities and what can you live without?
As hard as reducing monthly spending may seem, it’s also a reliable way to quickly lower your expenses and increase savings.
Earn more money
In 2017, nearly 78% of full-time workers claimed to live paycheck to paycheck, with just under one-fourth of adults reporting a regular inability to afford monthly bills. As paralyzing and unsettling as it is being in financial shock, by going the extra mile to bring in extra cash each month, you can earn the money needed to keep you out of the red.
Do you have items around your house you’ve been meaning to sell? Consider having a yard sale or listing them on an online classifieds. Have you thought about getting a part-time job to supplement your current salary? Submit an application. Have you been putting in the time, exerting the effort, and getting the results needed to qualify you for a promotion at work? Ask your boss. Could you get by in a smaller, more economical vehicle? Consider a trade in. When it comes to building your emergency savings account and/or covering the expenses of an unexpected event, the more options you explore, the greater your chances of reaching financial goals.
Visit your lender
If you’re one of the millions of Americans struggling to make it from paycheck to paycheck and need help paying off debt or covering bills, a loan might be the perfect, short-term solution. With years of experience in the finance industry, Power Finance Texas knows what it takes to help you survive an unexpected financial emergency. We also understand that even a little financial stress can quickly snowball into a serious problem. Our loans and services are specifically designed to give the resources needed in overcoming these issues. Consider, for example, the following types of specially-tailored loans:
- Personal loans: These non-business, unsecured loans aren’t backed by collateral and are typically underwritten by the lender to guarantee your repayment abilities.
- Installment loans: Incremented six-month repayment plans are calculated with a daily interest model to ensure you don’t overpay. A cash advance is a common type of installment loan.
- Payday loans: Designed to help you make it until your next paycheck, payday loans are short-term loans of $1,000 or less that must be paid back in full on your next payday.
- Short-term loans: Short-term loans must be entirely repaid in a limited amount of time and are typically intended to be paid back in equal installments.
Contact Power Finance Texas today to learn more about your financial options and to get pre-qualified for a loan. With the help of our expert, friendly lenders, you don’t have to face a financial emergency alone.