How to Prevent Another Financial Emergency

October 23, 2020 | Daniel Dewitt

financial emergency prevention tools

 

Financial emergencies take many different forms. Generally, they either involve an unexpected need to pay for something – like a medical emergency or an unplanned repair – or a sudden loss of income – like getting fired from your job. Worse than that, you might find yourself in a situation where both of those things happen at the same time. While it’s difficult to avoid a financial emergency by 100%, what you can do is reduce the odds of it happening by taking preventative steps.

Take These Steps To Cushion The Blow Of A Financial Emergency

So, here are five ways that you can prevent another financial emergency from happening.

Monthly Budget

If you want to avoid any surprises like financial emergencies, you have to know where your money is going. Yes, you hear this often enough already, but you need to prepare a monthly budget. With a budget in place, you’ll know precisely where you spend all your money. More importantly, you’ll know how much you can afford to set aside for an emergency fund.

Emergency Fund

The reason why financial emergencies are so scary is that they always seem to happen when you don’t have enough cash saved up. That’s why you need an emergency fund that acts as a buffer. When you set aside money in an emergency fund, a financial ‘emergency’ simply becomes a financial inconvenience. If something unexpected happens, you can rely on the emergency fund to get you through it. How big should you make your emergency fund? At least $1,000 to start with, build it up so that it’s enough to cover 3-6 months’ worth of expenses.

Minimize Commitments

When life is good, and money is flowing, we tend to sign on to more financial commitments than we should. Some of it is for big purchases like an expensive car or a house. We also do it in little ways, by signing up for memberships and subscriptions that are more than we need. Though we might not feel it during a good month, those financial commitments hurt when facing a financial emergency. So, how can we prevent another crisis? By scaling down on our financial obligations while we still can.

Eliminate Debt

Your debt is also part of your financial commitments. The difference is that you can’t just cancel your debt by signing a form. A lot of us typically carry a significant amount of debt, especially on credit cards with expensive fees and interest payments. People regularly pay only the minimum payments each month and continue using it as rotating credit. Again, when faced with a financial emergency like getting laid off, our debt will crush us. That’s why it’s always a good idea to pay off your debt as quickly as possible while things are still good. That way, we’ll have enough money left over each month to prevent a financial inconvenience from becoming a full-blown emergency.

Use Financial Instruments Wisely

This last point is somewhat related to the previous two. There are lots of financial instruments that banks offer to make our lives more convenient. Unfortunately, they’re double-edged swords that do quite the opposite if we misuse them. Credit cards are a perfect example. They offer lots of convenience by allowing us to ‘buy now and pay later’. Yet, if we use them too much, misused credit cards will trigger our next financial emergency!

That’s why, to prevent a financial emergency, it’s essential to use the right financial instruments to pay for things that we need. One such example is to utilize an online title loan!

 

financial emergency hurting your budget

 

What Is A Title Loan?

When you need quick cash to pay for something important, title loans near me are beneficial. With title loans, you can secure the money you need by using your car title as collateral. These days, you can even get South Carolina title loans without even leaving your home!

Advantages Of Title Loans

There are plenty of advantages to using title loans over other financial instruments. Here are some immediate benefits that you need to know about getting cash for title online:

  • We will work with you no matter what kind of credit you have. Whether you have wonderful credit or not, you don’t have to worry about being turned away;
  • You get to keep your vehicle while repaying for the loan. We are using your vehicle’s title as collateral – not the vehicle itself. So if you keep up with the payment schedule, you can keep your vehicle;
  • We don’t give you a laundry list of necessary items to show us. All we ask for is your ID or driver’s license, your vehicle’s title that is in your name, and your vehicle;
  • Our application process is quick and easy! In a day or two you will know if you’ve been approved, for how much, and will have the cash you need.

How To Get A Title Loan

Getting a title loan with Carolina Title Loans is simple. We offer you two ways of going through the process. You can either come to one of our stores or we will come to you! Either way, it starts with you filling out our online form found on our homepage. Once we receive the form, you will get a call from a loan representative in the closest title cash near you.

During the call, you can give the rep your location so they can meet you – if that is what you want. You’ll also learn what you have to have for us. Those items are: your ID or driver’s license, your vehicle’s title, and your vehicle.

After you get off the phone, you can either come to us and we’ll come to you. Either way, you will still need the items I mentioned. We will inspect your vehicle to determine how much you qualify for. We will then examine your application and let you know if you’ve been approved. If you meet us in person, we will hand you the cash you qualify for once you’ve been approved. If we come to you, we will put the money into your account by the very next bank business day.

Start Working On Your Next Financial Emergency With These Tips

Let me be honest, going through a financial emergency is difficult no matter what. But if you go through it with nothing to help? That’s even worse! The next time you are on the cusp of a financial emergency, remember these financial tips to help you out!