The rule of thumb for any savings account should be at least three months’ worth of expenses. But becoming an emergency cash holder can take a while to do! Building a substantial savings account could give you peace of mind. An emergency fund could be your safety net when unexpected expenses knock you down.
Not everyone has a savings account for an emergency situation, however. When you want to learn how to become an emergency cash holder, you might be lost!
If you do not have extra cash saved up, Max Cash Title Loans can step in. Applying for emergency cash can take just minutes to do online or over the phone. Borrowers like yourself that get qualified could get their cash in as little as one business day! 2 5
To learn more about emergency funds and your extra cash options in stock, keep reading below.
Why Create an Emergency Fund?
While everyone has a different financial situation, there are many reasons to have an emergency fund. For example, if you are a homeowner, you might have emergency money for a repair that may come up. Or if you own a car, you could have an emergency fund for oil changes or other maintenance.
Regardless of your reason for having emergency savings, they are important for everyone. Life happens, and when it does, savings can mean peace of mind for your personal finances.
For example, let’s say you lose your job or main source of payday cash. If you have an emergency fund, your bills could be covered until you find a new source of employment. That can take the stress off of the hassle of finding a new job right away. It also can help prevent you from having to dip into your checking account to get by!
Studies show that the average person in the United States has little to nothing in their savings account. Even just a few months of saving up for living expenses could help you build an emergency fund!
How to Create Your Emergency Cash Stash
Where most people have trouble is creating the emergency fund. IF you do not already have money aside, you may not know where to start! But, to get started, you’ll first need to choose the right type of savings account.
- Money Market Account
- High Yield Savings Account
- 401(k) or Roth IRA Accounts
Money market accounts can be a low risk savings account option. Generally, they can have beneficial interest rates, and help you save money!
When choosing the right money market account for your financial situation, you want to look for one that has a high interest rate, and no monthly fees. Some money market accounts will have a minimum balance requirement of $5,00-$10,000, but not all of them do! Choose the right one that fits your financial situation long term!
Money market account rates are not always fixed, which is something to keep in mind when choosing them. They are not to be confused with a mutual fund, which offers different benefits.
In comparison, a high yield savings account can have a fixed interest rate. Generally, high yield savings accounts can help you reach your savings goal in a timely manner! Just like money market accounts, you should shop around for the right type, for your financial situation.
If you are around age where it is time to think about your retirement plan, you should start looking into 401(k) and Roth IRA accounts. Both have their advantages, but the main difference between them is how you prefer to be taxed!
Regardless of what kind of savings account you choose, it is important that you aren’t neglecting your other bills. Along with allocating a portion of your monthly income towards savings, credit card payments and the like should still be a priority.
Budgeting Habits that Help You Become a Cash Holder
If you want to become an emergency cash holder, there are some rules you should start to follow. The most important one besides creating a savings account is to learn how to budget! While budgeting can seem like a lot of work, what it comes down to is just implementing new habits into your life.
For example, let’s say you purchase lunch at work during the week. If your lunch is only $8 a day, that comes out to $40 a week. If you made your lunch at home or took leftovers, you could save at least $160 on lunches to put towards your savings! You can also look at your morning coffee the same way. A cheap coffee maker is around $30. Let’s say you spend $5 a day on coffee. By buying a coffee maker, you could save another $40 a week!
If you have a tax return coming up soon, instead of blowing your money, try investing it or putting it right into your savings.
While these changes may seem small, they can make a big impact on your finances
Learning to Budget
Part of learning how to budget correctly is just learning how to prioritize! Your bills should come first. From here, you can check how you use your debit card throughout the month. Are you making too many impulsive purchases? Or spending too much on a cell phone bill when you could cut back? If you are prone to buying things off of social media ads, simply limit your access to it. Unsubscribe to emails that may tempt you to purchase things! These are all variables to think about when learning how to budget. While that may not be a fireproof plan, it is taking steps in the right direction to a healthy budget.
How Can Max Cash Title Loans Help Me Get Emergency Cash?
While you may have the right tools to start your savings plan, it may not be enough! If you need emergency cash in a hurry, you may not have months to learn to budget and save. Instead of waiting around for your emergency fund to build up, why not see if you can qualify for a title loan?
Max Cash Title Loans has helped hundreds of people across the United States get the cash they need. 2 5 And, we have representatives available seven days a week to help you get started on the process.
So, what are you waiting for? Get started today by applying for an online title loan. Or, call us toll-free at 1-(855)-561-5626! Your emergency cash could be just a few clicks away.