Financial Emergencies: Why Planning Is Important
September 8, 2020 | Emma Frost
If you’ve ever faced a financial emergency – which, chances are, we all have – then you know how easy it is to end up smack dab in the middle of financial ruin. Things like medical emergencies, sudden home or auto repairs, or sudden job loss are all financial emergencies. While you can’t really avoid these problems – hence why they are unexpected situations – you can still plan for them. You could fix your budget, build your emergency fund, and look into title cash to really help you out with your plan to face your financial emergency.
Why You Should Be Planning For Your Next Emergency
I know it might seem crazy to say you should be planning for your next unexpected emergency. I mean, if it is unexpected and can happen at any time, then planning for one seems pointless. But it really is not pointless. You want to make sure to come up with a good plan for multiple reasons. From keeping your credit in check to not having to change your lifestyle, these are the reasons you should plan for an unexpected financial emergency:
- Keep your credit from tanking
- Keep from permanently changing your current lifestyle
- Keep from depleting your entire savings
Keep Your Credit From Tanking
One reason to plan for your financial emergency is to keep your credit from tanking. When those big unexpected expenses are not dealt with and paid off as soon as possible they can start to pile up. Once those expenses pile up – and you still have your other expenses coming in – your credit can start to take a big hit. If you have a plan set in place that is manageable for you then you can actually start tackling your unexpected expenses and get them handled in a timelier manner.
Keep From Permanently Changing Your Current Lifestyle
When it comes to financial emergencies, if you are caught without a plan in place, you may find you have to make some drastic changes to your current lifestyle. You’ll have to stop spending unnecessarily and really tighten up how you spend your cash even when it comes to essentials like food. Of course, when you do have a plan in place, you may find that you have to make some adjustments – but that is only until your emergency is over and you have enough stability to go back to your old lifestyle. Without a plan, you may never get back to that.
Keep From Depleting Your Entire Savings
Obviously, when you are dealing with a financial crisis, you’d expect it to have at least some effect on your finances. But if you go into your crisis without having a set plan of action, you might be facing the complete depletion of not only your main bank account, but also your savings. You should not be dipping into your savings when you are dealing with an emergency. Your savings account is there for when you have specific goals in mind that you want to achieve – not to handle your emergencies.
How You Can Plan For Your Next Emergency
Now that you know why you should plan before the next financial emergency, it’s only natural I tell you how you should go about doing that. Coming up with a plan doesn’t have to be complicated; it just takes some thinking and some work on your part to make it work for you. Simple things like adjusting your budget could be the stepping stone to getting a full plan started. Your plan should focus on three parts:
- Go over your budget and make adjustments where possible
- Set up an emergency fund
- Look into title loan cash from South Carolina
Go Over Your Budget And Make Adjustments Where Possible
It is a good thing to sit down and go over your budget every so often. It happens to the best of us where we get comfortable and stray from our set budget. If we take the time to sit down and go over it thoroughly, we may find ways we can readjust and pull on the reigns. We can lower our unnecessary spending or look for cheaper alternatives for our necessary expenses like our food or clothes. These adjustments can get us some extra money we can set aside for the next part of our plan.
Set Up An Emergency Fund
With any extra money we have, that isn’t already going into our savings, we should be putting it into our emergency fund. This fund is set up so that, if you are facing an emergency that you cannot handle or you are handling one but it is causing you to not keep up with your necessary expenses, it can help keep you afloat. Financial experts actually say you should have at least three to six months’ worth of cash in your fund for emergencies. They say to think of it like how much you would need if you were unable to work and needed to stay afloat.
Look Into Title Loan Cash From South Carolina
The last part of this plan should involve you knowing about title loans in South Carolina. Title loans are loans you receive when you use your vehicle’s – whether car, motorcycle, truck, SUV, or trailer – title as collateral. With this loan, you can qualify between $601 - $15,000 to help you out when you are going through emergencies you cannot handle on your own. A loan won’t personally fix your money issues, but it will give you a hand getting through your emergencies. Look at “title loan companies near me” to learn more.