The Emergency Fund Amount You Should Be Saving
It’s becoming common knowledge that having an emergency fund is a must. After all, that’s one of the most repeated pieces of financial advice these days. Yet, people rarely know what the right emergency fund amount is in the first place.
Here are some helpful suggestions to get you started, including how to use payday loans to boost your emergency fund.
Deciding On The Right Emergency Fund Amount
Start With $1,000
There are no fixed rules when it comes to your emergency fund amount. However, one figure that you’ll find very helpful is $1,000. This is because when it comes to the most common types of emergencies that an average person might face, $1,000 should cover at least most of them.
Even if the total amount exceeds that $1,000, having that money would at the very least cushion the blow and make things much more manageable.
Plus, don’t forget that financial emergencies tend to be very stressful situations. So, when you know that you have at least $1,000 to deal with whatever might come your way, you’ll be able to sleep much better at night.
That $1,000 can be kept in whatever form you feel is the safest and most convenient for you. However, the most important thing is that you can access the entire emergency fund amount at any time, 24/7.
For some people, that might mean keeping it in the form of cash in their wallet or somewhere safe at home. Others might prefer keeping it in an account they can access online, especially if there’s a possibility they might need to transfer that money somewhere else.
That choice is entirely up to you, depending on your circumstances.
Adjustments Based on Job Security And Personal Situation
$1,000 is certainly a good place to start, but you should also consider adjusting your emergency fund amount based on your situation.
One crucial factor to consider is the matter of your job security. Are you in a full-time role that you have no reason to believe will go away anytime soon? If that’s the case and you’re confident in your job security, then perhaps you don’t need an emergency fund that's much larger than $1,000.
However, if you have reason to believe that you’re at a higher risk of facing financial issues, then you might want to consider saving much more than just $1,000. That would be a smart move to make if your work situation isn’t very secure.
Adjustments Based on Debt
Besides making adjustments to your total emergency fund amount based on your job security and personal situation, you can also make adjustments based on your debt. For example, some people might want to devote a more significant percentage of their income towards paying debt every month.
If that’s the case for you, then perhaps your total emergency fund amount shouldn’t be a lot higher than $1,000. That way, you’ll have more money freed up each month to channel towards debt payments rather than add to your emergency fund.
Remember: Always Have A Backup Plan
Whether you save up $1,000 in your emergency fund or more, you should always have a Plan B. No matter how big that fund might be, the emergency you face might cost a lot more. In those situations, you’ll want to have a plan for where to get more money quickly.
Payday loans in Utah offers are an option you can consider as your backup plan.
What Are Payday Loans?
Payday loans are a way to borrow money quickly for the short term. If your total emergency fund amount falls short of what you need during a financial emergency, then getting a payday loan could help you bridge that gap.
What Are The Benefits Of Payday Loans?
- Quick and Easy Process - You can get a payday loan in as little as 30 minutes.
- Minimal Documents Needed - All you’ll need are your photo ID, most recent pay stub, and a blank check from an active checking account registered under your name.
- All Credits Welcome – at Utah Title Loans, Inc., we will work with you whether you have good credit, bad credit, or non-existent credit.
How To Get A Payday Loan
- Find the form on Utah Title Loans, Inc.
- Fill up the online form with the necessary details.
- A representative will call you to set up an appointment and answer any questions you have.
- Visit the nearest Utah Title Loans, Inc. location, where the representative will walk you through the rest of the process.
- Once approved, you’ll get the cash you need on the same day. You can then use it to make emergency payments like doctor’s bills, critical repairs, and more.
Be Prepared for Emergency With Utah Payday Loans
Having an emergency fund amount of at least $1,000 is a fantastic place to start, and that’s undoubtedly more than most people have in theirs. If that’s not enough when you find yourself in an emergency, at least you know you can rely on payday loans from Utah Title Loans, Inc. to help you out. Apply for your loan today and get your money before the end of the 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.