How Much Emergency Savings Should I Have?
March 12, 2021 | Louis Tully
2020 highlighted the importance of having emergency savings starker than ever before. Now that Americans are slowly starting to get back on their feet, the question of "how much emergency savings should I have?" is becoming a hot topic. They are also wondering what to do if you need emergency cash now and we will explain how a payday loan can help.
Questions To Ask Yourself About Emergency Savings
How Much Emergency Savings Should I Have If I Have Consumer Debt?
The question is – how long will you be paying off the debt. The longer the debt is going to last, the more you need to have in savings, since your loan obligations won’t be going anywhere, even if you lose your job.
Typically, most financial experts advise people to keep between 3 to 6 months’ worth of expenses in their emergency savings, but if you’re paying off consumer debt, you should probably aim for the bigger number and try to save up 6 months’ worth of expenses.
How Much Emergency Savings Should I Have If I’m Paying Off A Mortgage?
Many seem to treat mortgages differently to consumer debt due to their longevity.
If you feel like 6 months’ worth of expenses isn’t quite enough after the 2020 crisis, you can try to aim at 9 months’ worth of savings. Some even save up to 12 months’ worth of their expenses, but most financial experts agree that that’s overkill.
After a certain point, your savings can become too much. Saving is good, but that money would be more useful in the long run, if you invested it or put it in retirement savings.
How Much Emergency Savings Should I Have If I’m Planning A Debt-free Journey?
Famous debt payoff guru Dave Ramsey believes that $1000 is enough for the “baby emergency fund” and you should dump all your other resources on debt payoff to become free ASAP. But even among those who’ve done Dave’s baby steps, you’ll find some who agree that it’s not enough.
If you do wish to propel yourself forward faster, however, you should probably aim for the lower end of the “optimal emergency savings” range and save 3 months’ worth of expenses (just do remember that these savings should cover minimum payments on your debt, not the extra you’ll be throwing at them).
How Much Emergency Savings Should I Have If I’m Completely Debt-Free?
The higher point of expert advice range – 6 months’ worth of expenses – would probably be a perfect target goal for you.
After that’s done, you can repurpose your savings for other things, like retirement, property, or even something fun like vacations (just not at the expense of the previous two).
How Do I Deal With an Emergency, Before My Emergency Savings Are In Place?
Saving for emergencies takes time, no matter how little or how much you’ve decided to save. This does leave you vulnerable to certain financial problems that can’t be covered just by your paycheck – medical and vet bills, car breakdowns, home repairs, etc.
The biggest downside of such emergencies is that usually time is working against you and postponing them is not an option. They tend to exacerbate and usually require more money to be solved as more time passes. Say if you have a toothache and postpone the dentist appointment because you’re unable to cover it with the money you’ve got, there’s the likelihood that what could be a simple cavity might require a root canal down the line.
If that’s the case, then you might want to look into taking out a short-term fast loan, like a payday loan, to deal with the problem ASAP.
Why A Payday Loan?
A payday loan is an accessible and fast loan that’s hard to abuse, which makes it a fit for an emergency. You can get approved even if your credit score is bad or non-existent since your credit history won’t come into play at all, and Texas Car Title and Payday Loan Services, specifically, will accept any kind of income, as long as you provide the proof that you’re able to pay off the loan. Additionally, the entire application-approval process takes on average no more than 30 to 45 minutes, and – if approved – you get the cash the very same day.
How Do I Apply For A Payday Loan Online?
You can easily start the application process from the comfort of your own home by going to the Texas Car Title and Payday Loan Services website and filling out the online request form. To apply you’ll need:
- Your government-issued ID – to prove you’re a legal adult (over 18);
- Your most recent pay stub – as proof of income and your ability to pay off the loan;
- A blank check from an active checking account in your name.
The Texas Car Title and Payday Loan Services representative you’ll be working with will assess the required documents and determine if you qualify for the loan If you’re approved – you’ll get the cash just like that.
Let us help you get the emergency funds you deserve! With the help of a quick Texas payday loan from Texas Car Title and Payday Loan Services, Inc. its as easy as pie.