Here’s How Much You Should Save For Emergency Expenses
In these uncertain times, you really need to have money tucked away for emergency expenses. It can keep you afloat if you suddenly lose your job or have to pay for a major repair or medical bill. The challenge, however, is how to build that fund—especially if you’re barely making it through each month as it is! Here’s how much you should save for emergency expenses, tips on saving even on a tight budget, and where to find money when your savings aren’t enough.
All You Should Know About Saving For Emergency Expenses
How Much Should I Save For Emergency Expenses?
Financial experts say that you should have enough money cover three months’ worth of important living expenses. That includes rent, utilities, food and groceries, transportation, and medicines. So, begin by computing how much you need each month. For variable expenses (like food and groceries) check your past receipts to get a realistic picture of what you really spend. Or if you have no records at all, track your spending for at least two weeks in an app or notebook.
Multiply that amount by three – and you have the minimum amount for your Emergency Fund. However, you may need to save more if you are nearing retirement age, have no medical insurance, or are the sole family breadwinner with young kids. Experts say that these factors can make you more financially vulnerable, so you need a larger fund for emergency expenses.
How Can I Save For Emergency Expenses?
- Open a separate account for savings. You won’t be tempted to dip into it, and it’s actually satisfying to see that number grow month by month.
- Set a weekly savings goal. Some people don’t like having a monthly goal because it’s overwhelming. Then just break it into four—say, $50 a week—and then think of ways to either cut down on expenses or earn that extra money.
- Find the “leaks” in your budget. There are many small expenses that add up and surprise you at the end of the month, such as eating out or shopping for new clothes. Think of ways to stop spending on those things – start cooking at home, find deals at consignment stores. You can save big doing just that.
- Join a savings challenge. You’ll find plenty of ideas online. It turns saving into a game, especially if you invite your friends or family members to do it with you. Since many people are worried about emergency expenses, you’ll find plenty of “partners” to make it more fun.
- Get the whole family involved. Talk to your partner and/or kids about how you’re trying to save for emergency expenses. Ask how they can help: look for ways to cut back, or pitch in to earn more money.
- Find a side hustle. Look at Upwork, Freelancer, IFreelance, and other sites for remote work you can do at night or on weekends.
- Sell stuff you don’t need. This can help you raise a huge chunk of money for emergency expenses – and also declutter your home! It’s actually better to do this now rather than when you’re scrambling for cash. You can wait to get a good price for your goods, instead of jumping at the first offer. Plus, sometimes it can take a while to find an interested buyer!
What Do I Do If I Don’t Have Enough Savings For Emergency Expenses?
Payday loans in Kentucky can help you raise money for any urgent expense that can’t be covered by your personal savings. You can borrow from $100 to $500 and get the money the same day you apply!
How Do Payday Loans Work?
Payday loans work like a cash advance on your next paycheck. After showing proof of income (like a pay stub) you can borrow money and then pay it off when your next salary comes in. Unlike other kinds of loans, fast payday loans in Kentucky don’t require a high credit score. Bad credit history, or no credit history—anyone is welcome to apply!
What Are The Requirements Of Payday Loans In Kentucky?
You need to bring your driver’s license or any driver’s license or state-issued I.D., your most recent pay stub, and a blank check from the active checking account in your name. In some cases, you can take out a payday loan on other sources of income, such as regular pension or alimony. You just need to show the necessary documents.
Get Your Emergency Fund Today!
Having enough funds to cover emergency expenses ensures your financial well-being, and it’s important to start taking care of the emergency fund before bad things happen. Follow our tips to learn to stay on the right financial track and establish a reliable emergency budget.
If, however, you don’t have enough savings for emergency expenses, remember that Fast Payday Loans of Kentucky, LLC. has you covered. In just less than an hour you can get up to $500 cash to deal with urgent matters. You can get started today. All you need to do is fill out a short inquiry form on our website.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.