jar of emergency money

Why Emergency Funds Are So Important

Life is uncertain and that fact highlights emergency funds importance. You never know when you are going to need some extra cash and having it brings security to your mind as well as your situation.

Most emergency funds are saved money stashed in a bank account. The problem is that less than half of Americans have significant savings, most having less than $500 in a savings account, while 10 percent don't have any savings at all. They know of the emergency funds importance but find saving impossible. We've listed some ways to help you with saving including receiving installment loans from Utah Title Loans, Inc.

The Problem With Saving

Saving money is incredibly difficult today even in a two-person working household. It seems the average pay isn't enough to cover even the most basic of necessities. Inflation remains high so everything from gas to food costs more. 

Most people know of emergency funds importance but find putting extra money away for a rainy day challenging. 

life raft with installment loan cash with text why emergency funds are important

Creating A Plan

The one aspect of saving for an emergency is to make it a priority. It's like paying yourself first. You can always pull the money out later if you need it. 

First, putting some money into a savings account weekly creates a habit. Studies show if you do something 14 times, it becomes a habit. Putting a priority on emergency funds importance is a good habit to create, even if you pull some money out mid-week. 

Second, saving every week helps you put other things in priority. You realize you don't need that extra coffee or to make a stop by the fast-food restaurant. 

Habits That Help

There are three things you can do to start saving and build emergency funds importance today without a lot of pain. 

1. Start Small

Don't try to stash a lot of money in savings right away. Put just two or five dollars in. It's likely you won't miss that small amount in your checking and it can build quickly over a few weeks. 

A good ratio for many people to create as a goal is to save 10 percent of their paycheck. 

2. Try Automatic Savings

Both employers and banks offer self-directed automatic savings. With employers, the amount you select comes directly from your paycheck and goes into a savings account so you never see it in your checking. The bank option does the same thing except it automatically moves the money from one account to another on a day you specify. 

3. Give Up Something And Put That Money Into Savings

This is a conscious effort to achieve a goal. It helps people who want to change their mindset and intention. The idea is that none of us realize how much money is spent on all these little things. These are things that can easily be given up to stress emergency funds importance. 

What If Something Happens?

Savings are there when an emergency happens. However, you may find that your emergency is a little bigger than what you have in your account. That is especially true if you just start saving and a car needs a repair or you have an emergency dental visit. 

That's where we here at Utah Title Loans, Inc. can help with our signature installment loans. Installment loans are similar to personal loans in that they are unsecured loans guaranteed with your signature. They require no collateral and are repaid with equal monthly installments over a short time. 

Installment loans with us can get you up to $1,500. The requirements are that you need a driver's license or any state issued ID, proof of income; which is typically your most recent pay stub, and a checking account that is active and open in your name. The amount of money you are approved for depends mostly on how much you earn and the credit check. 

Applying For An Installment Loan

Applying for an installment loan with this private lender is much easier than with traditional financial institutions. Start by filling out the inquiry form on the website. A loan representative from a nearby store will contact you with more information. 

Then, all you need to do is bring your documents to the Utah Title Loans, Inc. location and fill out the easy application. A loan representative will verify your documents and determine your eligibility. You could walk out with an approved loan in as little as a half hour. The money will be made available to you either the day of approval or the next business day. 

emergency installment loan notebook

What About Bad Credit?

Those with bad credit are welcome to apply, though keep in mind that we will do a credit check before we can decide if we can approve you or not. Talk to a one of our loan representatives about our requirements for credit approval.

Create A Backup For Savings

Those who are starting a savings account understand emergency funds importance. Having a backup plan for situations that reach beyond the money you've saved is crucial for peace of mind. 

Installment loans with Utah Title Loans, Inc. are a good backup plan for unexpected situations. See if you qualify today by filling out the website inquiry form!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.