Building A Better Emergency Fund In Mississippi
May 1, 2020 | Emma Frost
You never know when an emergency will strike. Whether it’s an emergency that puts you or a loved one into the hospital or a natural disaster floods your home, an emergency brings with it a lot of trouble; You especially feel that trouble when it comes to the hit to your finances. Whether medical bills or repair bills, the price tag is usually big. When an emergency hits you, you’ve got to make sure your finances are backed up by your emergency fund. While it may take hard work to learn how to save money for your emergency fund, it will be worth it when the next emergency hits and you have the funds to deal with it.
What Exactly Is An Emergency Fund?
An emergency fund is money you put aside specifically for when you are hit with an unexpected financial emergency. You’d use an emergency fund for things like unexpected medical bills, major car repairs, major home repairs, or when you lose your income because you lose your job. The fund should cover 3 – 6 months of expenses. Just think of it like this, how much money will you need to get by if you lost your job? Not necessarily maintain your current lifestyle, but enough cash to cover your necessary expenses. We all know unexpected emergencies happen, why not make sure you have the money necessary to help? Even if you need a fast loan from Mississippi to help you start, you really should think about ways to put together your emergency fund.
Where Is The Best Place For An Emergency Fund?
A good place to keep your emergency fund is not just a regular savings account. You should be looking for a high-yield savings account. A high-yield savings account is a regular savings account with a big difference; the difference is that a high-yield account allows your money to earn more interest over time. Basically, you are getting more bang for your buck. It’s good to keep your emergency fund in a separate account from your other cash because you don’t want to be tempted to use it for just anything. You also want to be clear how much you have set aside for emergencies. A good tip is to keep your emergency fund away from your other financial savings like your retirement account or your kids' college fund.
What Do I Use My Emergency Fund For?
Your emergency fund should only be used for emergencies you cannot handle on your own. Even if you have medical insurance or insurance on your home, it still may not be enough to cover everything in the event of a medical or natural disaster emergency. These are the types of situations in which either a fast title loan from Mississippi or your emergency fund will come in. When you need to pay for massive medical bills or extensive home repairs due to a natural disaster or any other event, your emergency fund will allow you to not fall into deep debt. You could also use your emergency fund to maintain your bills and expenses if you find yourself unable to work due to a medical emergency or if you are laid off.
How Do I Set Up An Emergency Fund?
It isn’t as hard as it sounds to set up an emergency fund. You just have to have clear goals in mind. While you can’t imagine how hard an emergency could hit you, you should still have a goal number in mind of how much you want to save. Set a desired amount and time. For example, your desired amount could be $45,000 and your goal time could be in five years. Once you have these goals planned out, you should figure out how much you already have saved and your money’s growth rate in the high-yield savings account. You may have to make some adjustments to your budget and learn to cut back on some unnecessary expenses, but you will feel a lot better when you have the money when faced with an emergency.
Related content: What Crisis Can Teach Us About Money
If Your Emergency Fund Needs Help, Get A Title Loan
Now that you know everything you need to know about emergency funds and how important they are, you may need some help getting your emergency fund started. When you need some help getting your emergency fund started, look to online title loans in Mississippi. Fast loans are great for helping you get through any emergency you are facing and allow your finances to recoup and build your fund for the next time. Just go online and fill out the online form in order to start the process. Then you can either go to one of our Mississippi stores or have us come to you to complete the process.