Too much week or month at the end of the cash…It’s a common problem that most adults face at some point. The problem is many people don’t know what to do when money feels tight. Often, they move into freeze mode, which stops them from taking action. That’s when it’s helpful to have a plan in place.
For people creating such an emergency plan, these four suggestions can be helpful.
1. Put Together an Emergency Fund
An emergency fund is a stash of money that a person puts aside for emergencies. Emergencies, in this case, can mean a broken window, an unexpected flat tire, or an unplanned visit to an emergency vet. Financial advisor and guru, Dave Ramsey, talks a lot about the emergency fund on his blog and in his book, “The Total Money Makeover.” …show more content…
That can mean keeping it in cash form, but it can also mean that it’s in a special savings account earmarked for that purpose. His plan only has a couple of rules. He tells people to use the money if and only if it’s truly an emergency. He also reminds people to replenish it if it is used.
2. Payday Loans and Other Measures
Payday loans, credit cards, bank lines of credit, and other options like these can provide you with a safety net when money is tight. Of all of these, payday loans - and to a degree, title loans - are the easiest to get. Payday loans usually ask the consumer to write a post-dated check, which will be cashed on payday or thereafter. The lending companies that offer these types of loans will ask the borrower to write the check for over the amount needed. The loan company then will give the borrower the amount he/ she wants to borrow and keeps the rest on payday as a type of fee or interest for borrowing.
Title loans allow people to use their car’s title as collateral for a loan. The title must be free and clear of liens. The title-loan company will give the borrower a contract with a set number of days/ weeks to pay off the loan. Usually, the money borrowed from the title loan company needs to be paid back within a matter of a couple of weeks, often on …show more content…
Save on Daily Expenses
When it comes to saving money when finances are tight, the little things add up. The Simple Dollar has a few suggestions. First, the site recommends finding a couple of alternative methods of transportation. Public transit comes to mind. However, there is also the option of riding a bike or walking. This step alone can literally save a person hundreds of dollars each month.
It’s also possible to hold a tag sale and get rid of unused items. The money earned could help pay some bills.
4. Get a Second Job, Save the Extra
One of the other things that Dave Ramsey suggests is that people get a second job. While this suggestion is often paired with his advice to get out of debt, it’s just plain good advice for the financially strapped. Aside from giving a person some extra cash, it also allows him/ her to put money into savings. When a person faces financial difficulties, it’s hard to put money into savings. Ironically, it’s the act of putting money into savings that helps when those rainy days inevitably come. Having a second job helps the strapped person save money when it’s not possible
For people creating such an emergency plan, these four suggestions can be helpful.
1. Put Together an Emergency Fund
An emergency fund is a stash of money that a person puts aside for emergencies. Emergencies, in this case, can mean a broken window, an unexpected flat tire, or an unplanned visit to an emergency vet. Financial advisor and guru, Dave Ramsey, talks a lot about the emergency fund on his blog and in his book, “The Total Money Makeover.” …show more content…
That can mean keeping it in cash form, but it can also mean that it’s in a special savings account earmarked for that purpose. His plan only has a couple of rules. He tells people to use the money if and only if it’s truly an emergency. He also reminds people to replenish it if it is used.
2. Payday Loans and Other Measures
Payday loans, credit cards, bank lines of credit, and other options like these can provide you with a safety net when money is tight. Of all of these, payday loans - and to a degree, title loans - are the easiest to get. Payday loans usually ask the consumer to write a post-dated check, which will be cashed on payday or thereafter. The lending companies that offer these types of loans will ask the borrower to write the check for over the amount needed. The loan company then will give the borrower the amount he/ she wants to borrow and keeps the rest on payday as a type of fee or interest for borrowing.
Title loans allow people to use their car’s title as collateral for a loan. The title must be free and clear of liens. The title-loan company will give the borrower a contract with a set number of days/ weeks to pay off the loan. Usually, the money borrowed from the title loan company needs to be paid back within a matter of a couple of weeks, often on …show more content…
Save on Daily Expenses
When it comes to saving money when finances are tight, the little things add up. The Simple Dollar has a few suggestions. First, the site recommends finding a couple of alternative methods of transportation. Public transit comes to mind. However, there is also the option of riding a bike or walking. This step alone can literally save a person hundreds of dollars each month.
It’s also possible to hold a tag sale and get rid of unused items. The money earned could help pay some bills.
4. Get a Second Job, Save the Extra
One of the other things that Dave Ramsey suggests is that people get a second job. While this suggestion is often paired with his advice to get out of debt, it’s just plain good advice for the financially strapped. Aside from giving a person some extra cash, it also allows him/ her to put money into savings. When a person faces financial difficulties, it’s hard to put money into savings. Ironically, it’s the act of putting money into savings that helps when those rainy days inevitably come. Having a second job helps the strapped person save money when it’s not possible