Starting Your Own Emergency Fund

Everyone needs emergency fund; there is no doubt about that. There are times when you are forced to take out short-term loans such as payday advance just because you have no cash reserve in hand. These times can be avoided easily by setting aside a very small portion of your income for emergency purposes. Believe me when I say that having emergency fund is a task quite easy to complete if you really want to.

Start by setting aside a small portion of your income and store the money in a separate emergency account. Make sure the account is completely separated and will only be used during emergency situations. You can set whatever amount you can afford depending on your personal financial state. The best rule of thumb is to set aside no less than 5% of your total income and store it separately.

If you do face emergency situations, you can access the emergency fund instead of relying on short-term loans. If you have financial gaps before the next payday due to unexpected expenses – such as paying for your kids’ medical bills or other similar emergency situations – you can cover the gap temporarily using the emergency fund. Make sure you put the money back as soon as you receive your next paycheck to keep the emergency fund available.

You can consider investing the emergency fund once it reached certain level. Keep a portion of the emergency fund in the emergency account and invest the rest to produce returns. Before you know it, you can even self-insure your house or cars and save even more money in the long-run.


Comparing Auto Loans

Auto loans are one of the best loans to take out as long as you plan your move properly. There are several basic tips you may want to follow, and we are going to discuss them in this article. Shall we start?

Before you take out auto loans, make sure the car you want to buy is well within your budget. Most auto loan deals are highly affordable in terms of monthly payment, but that doesn’t mean you should buy cars that are beyond your personal financial capability. Stick to needs and not wants; simply choose the car you and your family need from affordable options.

When seeking auto loans, it is always best to use available online tools to help you. Auto dealers might also offer you auto financing options; settling for what they have in store is never a wise move to make. Instead, you should compare auto loan deals and settle for nothing but the most beneficial one.

Before you sign the auto loan agreement, make sure you review the deal’s terms and conditions. Auto loan is a secured loan with the purchased car as collateral, which means lenders have the power to take back the car if you failed to meet more than three monthly payments.

Last but certainly not least, consider different sources of financing before you finalize your purchase decision. If you have a house and have access to home equity loan, for example, you may want to compare the two options’ costs and see which one is the best.