When trying to stretch every dollar of your paycheck as far as it will go, it can be a challenge to try and save some dough for emergencies. Most Americans save less than 5% of their annual income, despite efforts to put away more throughout the year. Things happen, and we can’t always save as much as we would like. These tips may help do the trick, but if you need money in a pinch, there are different options you can try in order to pay those emergency bills.
Use Direct Deposit as a means of saving some of your paycheck. If you allocate a certain amount of funds into both a checking and a savings account, it may be easier to save if it’s done automatically. Without actually seeing the money, it can help you put some away and keep it there. If you’d rather save the old fashioned way, pay yourself first. Write yourself a check as soon as you get paid and leave it there. My husband’s grandmother had this philosophy of “pay yourself first” and after years of hard work and saving, she and her husband are still living a cushy life in their retirement years.
If you want access to your savings, a plain old savings account works best. But if you are planning on saving for the long haul and want a return, invest in a CD, or Certificate of Deposit. These type of savings accounts pay interest on your investment, so the longer you save the more you earn.
Although everyone is different and age, income and other factors should be taken into acccount, saving 10% of your paycheck is a nice place to start. If your company offers a 401(k) match, save an additional amount to be put into that and your company will match a portion of your savings.
If you need money in a hurry, and you haven’t been following the advice listed above, there are a few ways to go about getting it.
First, try using a car title loan service. Car title loans are a quick and easy way to get a large sum of cash, even if you don’t have good credit. Although the interest is outrageous, these places usually just require you to have a job and live at the same residence for a certain period of time. Your credit is not usually a factor, and most of these companies don’t perform credit checks. The emergency money you need can be borrowed to pay those unforeseen bills, but should be paid back as soon as possible.
Title loan companies depend on people to stretch out their payments on the loan and charge high interest rates as a way to make money. Try to avoid stretching out your payments and pay back the loan with your next paycheck. A convenient online loan service can help you in minutes.
Sell your stuff on Craigslist.org or on other websites like eBay. Take pictures of furniture, baby items, electronics or other gadgets you can do without and put them up for sale. It may not be the most appealing route to make fast cash, but if you really need money this is a good way to raise it quickly.
I would suggest trying to save money the old fashioned way so you don’t have to worry about coming up with cash for unforeseen circumstances. But we all could be better savers, so why not start by socking some away from your next paycheck for your future and for future unexpected emergencies?