It’s tough to get by financially in today’s fast-paced life, so learn how to avoid financial disaster with good planning. Paying rent, a car note and massive amounts of credit card debt, most people struggle to get by from month to month.
With most people doing what they can just to pay their bills, few people are prepared for the unlikely event of a financial disaster.
The disasters come in many forms; a storm like a hurricane, a loss of job, or a sudden illness can break anyone who isn’t prepared for an unexpected interruption in their financial life.
Many times people start planning and things are going well. But then they hit an unexpected snag, and they need the money to pay an overdue bill.
But it isn’t all that difficult to learn how to avoid financial disaster with good planning, get the book entitled Household Budgeting to help you to prepare for these times. All it takes is a bit of foresight ahead of time.
Here are a few of the things that will also help you be prepared for the unexpected:
Get an ATM/Debit card – You may not regularly use cash or have a need for a debit card, but there are some circumstances where it may be necessary.
People who were temporarily displaced by hurricanes would have benefited from having access to cash even while away from home.
If you don’t use one regularly, get one anyway and keep it in a safe place.
Sign up for direct deposit – With direct deposit, you will know that your paycheck will be in your bank account even if you cannot, for whatever reason, physically get to your bank.
This will help you in the event of illness or natural disaster that may have your local bank temporarily closed.
Sign up for online bill paying – You can pay bills even if you aren’t at home via the Internet. You don’t have to use the service, but it may come in handy at a time when you least expect it.
Try to cut back on a few unnecessary items, such as that tall latte you buy every day. It adds up, and you never know when you may need to access that emergency cash.
Save some emergency cash – You don’t notice it at first, but soon you find yourself living in a paycheck to paycheck world. What you make one month is gone before you have any time to add it to your savings account.
Financial experts recommend that you save at least three months’ worth of financial expenses. That may seem difficult, but these tips can help you get started.
1) Set up a savings account specifically for your emergency fund or rainy day fund.
Whatever you want to call it, just establish one!
2) Deposit a certain amount of money on a weekly, biweekly, or monthly basis in your account. You may want to set up automatic deposits to your account via your payroll department.
Or, you may want to have your bank automatically withdraw a certain amount of money from your checking account into your emergency or rainy day savings account.
3) Try to save at least 2-3 months of your monthly salary to cover your bills for at least three months if you were to loose your job. This amount of time will hopefully allow you the cushion you need until you secure new employment.
4) The money you save in your emergency or rainy day account should be used for household emergencies, personal emergencies or if you’re no longer able to work.
Don’t use it for other expenditures such as bills, travel, etc… Get the idea? It’s a savings account that you don’t want to touch unless it’s absolutely necessary!
5) Make sure the bank account you put your emergency or rainy day into, is paying you the most interest you can earn for this account!
Research as many sources as possible on securing the best interest rate you can get.
Check with your bank, the internet, newspaper and other sources for the prevailing interest rate. You want to make sure your money can be accessed easily and quickly if you need it for an emergency!
By establishing an emergency or rainy day fund, this will give you a better peace of mind. It is a way to have access to money when there is an emergency in your life.
So, the sooner you start setting money aside for a rainy day, the better off you will be! Make sure the amount of money you contribute to your emergency or rainy day fund, is realistic for your budget.
Save as much as you can without upsetting your overall personal or family finances. So go ahead, get started today!
Set up a line of credit – Unlike a loan, which provides you with a lump sum of cash right away. A line of credit provides you with cash that you can use a little at a time; and only when you need it. If you don’t actually take any money out, you don’t have monthly payments.
But if an emergency strikes, you’ll have cash available.
This can be particularly helpful if you find yourself out of work for a short period of time.
A little bit of planning can go a long way when a financial emergency strikes, and the book Household Budgeting will give you valuable pointers. If you plan for it now, you will have fewer worries later.
Are you ready to prepare your finances in case of an emergency? If so, check out the resources recommended to you by Inker Street Consumer Credit Advice.
- Household Budgeting: Will show you how to stick to your budget. So that, soon you will have a monthly surplus, and you will see your savings start to grow.
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