Here’s What Could Happen Without Emergency Savings Funds
The importance of emergency savings funds has been stressed over the years by most financial experts. It has also gained significant traction after the COVID-19 pandemic showed just how vulnerable people can be financially – even when employed full-time.
If you’ve yet to learn what emergency savings funds are and why they’re important – here’s all you need to know.
What Are Emergency Savings Funds?
It’s the money you save and keep easily accessible to cover any unexpected large expenses you’re unable to work into your budget. Think everything from urgent car or house repairs, overdue bills, moving expenses to something more serious like large medical expenses and job loss.
Typically, emergency savings funds are kept in (high-yield) savings accounts and can be accessed anytime the owner needs them.
As they don’t make you a lot of additional money unlike savings, most financial experts agree that the most you should save are 6 months’ worth of expenses.
Why You Need Emergency Savings Funds
Here are just some examples of what could happen to someone with no emergency savings funds (and the ability to get cash together quickly).
You’ll Have A Hard Time Covering Expenses If You Lose Your Job
If you have no emergency savings and live paycheck to paycheck, a sudden job loss may put you under in a matter of days. Between your last paycheck and until the unemployment kicks in, you’re likely going to either somehow magically stretch that last paycheck, or make some tough choices about which expenses you’ll have to disregard and make up for later.
You Might Not Be Able To Afford Emergency Medical Expenses – Even With Insurance
Sudden medical expenses are one of the biggest fears of an average American – and for good reason. Even with insurance, you’re likely going to have to tackle deductibles that can be unreasonably large and hard to cover from a single paycheck.
And if you manage to tackle the deductibles, it’s no guarantee that you won’t require tests your insurance doesn’t cover or medicine that you’ll have to cover on your own. Emergency savings funds could make a world of difference in a similar case.
You Might Get Stuck In A Dangerous Situation
Lack of funds is often the biggest reason people get stuck in dangerous situations. Be it the inability to abandon a mentally abusive household, leave a physically abusive partner, or just move from a house/apartment that’s unsafe due to faulty construction – the main reason people remain in these situations is the lack of funds to get themselves out.
Having emergency savings funds on your hands means being financially independent and having the ability to extricate yourself from a situation that’s becoming dangerous in a timely manner.
How Do I Handle It With No Emergency Savings Funds?
Building up emergency savings funds takes time. The smart and responsible thing would be to start slowly saving money to ensure you’re sufficiently covered if an emergency hits – but that’s the long-term strategy.
On a more short-term notice, you’d need to focus on getting the cash together quickly. While it might sound undignified, don’t be afraid to ask for help from family and friends, ask for a salary advance at work if that’s something your employer offers (you’d need to talk it over with HR).
If, however, getting funds together is not an option, it might be time to start googling “payday loan locations near me”.
What Are Payday Loans?
Payday loans are accessible small loans suitable for those who need cash on short notice. If you need a few hundred dollars ASAP, they’re worth looking into. With Fast Payday Loans Of Kentucky, LLC., the application process is simple and quick, and we welcome potential borrowers of all credit and employment situations.
How Do I Find Payday Loan Locations Near Me?
With the convenient store locator on our website, spending hours surfing the web for “payday loan locations near me” is not necessary, as you can easily find the branch closest to you. You’re also free to choose the store at your convenience – when you submit the quick cash online form on the website, you can choose the preferred location, and the representative from that location will contact you soon enough.
What Do I Need To Get A Payday Loan?
When your form gets processed, the representative will get in touch with you with further instructions and schedule a meeting with you. You’ll need to take a government-issued photo ID proving you’re over 18 years old, proof of income (preferably your most recent pay stub), and a blank check from an active checking account in your name to that meeting.
The representative will assess your documents and determine if you qualify for the loan and the amount you should get. If you do, they’ll help you complete the necessary paperwork and you’ll get the cash. This entire procedure could take as little as 30 minutes.
Get Started Today!
No need to look for “Kentucky payday loan locations near me” anymore! Get started with Fast Payday Loans Of Kentucky, LLC. online today by choosing the store at your convenience – and you can get up to $500 in less than a day!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.