People use payday loans online for many reasons. The most important aspect of getting fast cash is to take care of emergency costs. One of the biggest causes for funds running low with no extra money saved is found by those who do not control the excess spending. Granted, there are people who just don’t have enough to cover the basics, but those are not the ones who will be discussed here. Payday loans lenders provide fast cash to those who are able to keep up but end up with little in the bank when unexpected costs arise. It is tough to be consistent with feeding savings accounts, but there are ways to save extra cash which can be placed into savings instead. Using your own savings account to fall back on during financial struggles will help keep your finances from falling further into debt.
Payday loans can help in a jiffy, but a savings account is better.
Prevention is the best medicine, even with your finances. Here are three ways in which you can save some cash and place it into your savings account instead.
- Don’t spend money on extended warranties for electronics. The person at the checkout or the one helping you out on the floor will always make it sound like these warranties are something you just don’t want to go without. In fact, if the purchase you are making is expensive and the make or model is new to the industry and has not had time to work out any possible kinks in the system, it might be a good idea to purchase the warranty. With this said, you want to make sure you are not spending more than 10% of the purchase price for the warranty itself. Other than that, save the money you would spend on the warranty and put it in the bank. Most electronics will come with a factory warranty and if something is bad on your device, you will know within that time frame.
- Spending money on home warranties is not necessary unless you are buying a very old home where the wiring may not be up to par or the appliances are old as well. Spending money on the insurance does not prevent you from possibly paying deductibles, service charges, or having to show proof on non-neglect. Take the amount going towards insurance each month and place it into a savings account will build up a nice nest egg quickly in case there is something that breaks down or needs replacement later. You will have money in the bank to use for any kind of emergency, and the chances that there will be lots left over are good.
- Refrain from pet insurance. The money you would be paying in for the insurance could be used to build up a savings. Set up your own personal fund for pet care when the time comes. Besides paying for the premiums on the insurance, there will be deductibles, medicine costs and possible co-pays. As your pet gets older, most of these plans have price increases as coverage declines. Building your own fund for pet care will come in handy when it is time to take your pet in for care. In the meantime, if there are any other financial disasters you are looking to avoid, you will have access to free cash to cover the emergency cost.
Paying premium prices for insurances which do not get used or have many clauses for non-coverage may not be the best place to put your money. Building up a savings account, which will have at least six months living expense coverage, is the best way to protect yourself from having your debt go out of control. Direct payday loans lenders, credit cards, pawn shops, auto title loans, bank or credit union loans do provide cash, but they all carry a price tag.
Pay attention to where your money goes and make your savings account a personal payday loan account.
