Defining Emergency Money

With most people struggling to make it from one paycheck to the next, the idea of saving money for those rainy days seem too good to be true. But with all things uncertain in life, having a solid financial plan is always a good idea to avoid sinking into debt. And when these unexpected things happen, what should the Average guy and gal do?

Emergency money, also defined as emergency fund is described as money that is set aside to be used whenever the need arises, may it be the loss of a job, a major medical or dental expense, death of a loved one, untimely home or vehicle repairs or even an unwanted pet emergency. Either way, the emergency money serves as a security blanket in the event of a financial dilemma. The target is that one has to have enough money to cover for expenses within a certain period of time, usually from 3 months onwards. And the goal is to stay afloat, to continue living normally through those tough times without having to turn to credit cards, mortgage property or take out high interest loans.

Banking and financial experts as well as amateur advisors have different approaches on how to come up with an emergency money plan including the amount of money an individual has to put in. Now the question is, where and how to start? A good start would be to decide on the amount of money to put in.  It may vary depending on the level of income and may also be determined by calculating expenses such as rent, food and groceries, monthly bills, child care, insurance and so forth and allocating a percentage of that paycheck for emergency money. Another option is to keep it small by starting out with a realistic figure and gradually increasing it over time. There are also emergency fund calculators available on the internet that can be accessed to help in making emergency money plans that is best suited for you.

Next would be where to put that money. There are factors to be considered as to where the money should go once the saving has started. One factor is what is commonly called as “liquid” which means that it is highly available for use when the need arises. Opening a savings account that comes with an ATM or having cash on hand like stashing it under the mattress or keeping it in a piggy bank are examples of this. Another factor to consider is volatility or the ability of its value to change over a short period of time or its unpredictability. An example of this is investing in real estate and buying stocks where it is affected by fluctuation. There are other options available as to where the money can be placed.  Opening checking account, money market funds, certificates of deposits and bonds are just among the few.       

Though it is understandable as it is tempting with that money lying around, always remember that buying that flat screen T.V or the latest gadget out in the market or taking that dream vacation you’ve always wanted and other luxuries does not fit the category of emergency. So take charge, start saving. 

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“Investing Payday loans”

Payday loans are cash advances connected to a payday of an individual employee.  It is a short-term borrowing investment where one borrows a small amount. Payday loans are written on a personal check plus the institution’s financial charge who initiates the lending. Based on a personal check held for future deposit or on electronic access to the individual’s account in a bank, payday loans must be repaid earlier or on that specific date and time the transaction is done.

Sample scenarios

In the United Kingdom (UK), Payday loans are an increasing industry with four times as many people using such services. In 2014, the largest lending company in the United Kingdom Wonga, was predicted to have a market share in the estimated area between 30% and 40%.

People on Benefits due to the Government

These loans are useful and a positive help for the people who get benefits for government Social security Department every day. In need of extra amount of money for emergency expenses and unavoidable circumstances, payday loans can help resolving that problem.

Most people experience difficulties being on benefits. If they are hit by additional payables, their situations will only get worse. The problem remains is who will provide them additional cash.

Advantages

These loans have no restrictions and boundaries.  Because of how fast it can be given and received, it is used for personal emergencies and expenses. Payday loans are easy to qualify because it’s only limitations are an individual should have an enough income. Debt is also prevented in payday loans because one must repay it based on that scheduled time. One’s income is restricted to the amount one can borrow at any scheduled time.

Applying for a payday loan is secured, safe and personalized which makes every money transaction between the individual and banking institution private.  Both cannot give it to other institutions. In the legal aspect, many places have laws and rules that will protect the borrower from high interest rates and fees, and financial excess liabilities.

Since one has to refill it on time, payday loans appear to be faster to receive after filling out an application of the lending company. Receiving a cash advance loan takes a few times. Many lenders also offer a guarantee of one hour for receiving the money after it has been approved.

Places for Payday loans

Companies understand this financial situation on people living on benefits which is why loan solutions for them are designed by financial consultants.

Payday loans are commonly linked to an employee or individual’s paycheck exempted of the type of benefit one receive from the local government. Most lending institutions in Britain or the UK also give a selected and refined repayment financial plan. This plan is dedicated to people who admit that they have a hard time repaying that loan.

Some will give out a little amount towards repayment of an individual’s paycheck every month. Applying for a payday loan provides lower interest with a flexible and quick repayment plan depending on the person’s personal circumstances and financial situation.

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What Are The Advantages Of Pay Day Loans?

Loans are the last options for people who need money. This is a common scene for every  person wanting to avail of loan from the money lending institutions. As there may be lining or signing up loan forms and applying for short term or long term loan. People do have a choice on what kind of loan to avail, and most people would go for short-term loan.

Short-term loan are the kind of loan that gives out a small amount within a short specific period of time. Payday loans are one of this short term loan. It is common to those employees to have this kind of emergency fund. Where this is to be paid the next payday. If you wish to know more about how payday does to you, here are its advantages.

1. It is a fast money in times of emergency. People who are in dire need of money in an instant can have this kind of loan. It can give you and provide you the money you need within hours.
2. It is a n emergency money where it helps you avoid other charges for the day. An example of this is the due for credit card or bank charge.
3. This payday loan can be availed even if you have a bad credit rating, still you can have the money. It does not look to your credit standing and overlooks your credit score. It just sees the required documents for your application in payday loan.
4. It teaches a big responsibility for the young professionals where this young people are stil learning how to adjust the certain financial issues and having payday loan means not having to depend anymore with somebody.
5. This payday loan can temporarily guard you from your credit rating. This can meet your financial responsibility and get rid of a bad credit rating.
6. This is a loan where it gives you money that you need to pay it within the specific short period of time. If you already paid for this then you can again re loan because it already proved that this instant cash helped you with an immediate need. 
7. Availing payday loan would let you open an account in bank. This is where the money lending institution credits your cash. It allows you to see how money works.
8. Anyone who wants to avail of this loan should have a permanent job. This is just like any other kinds of loan where it requires a borrower to be employed. This will make you a responsible individual.
9. This payday loan gives out small amount of cash of up to $1,000 and this would really encourage one to pay for the short amount on time. Because of its small amount one can really afford to pay this on time and with the right amount that are debited to the borrowers salary.

Anyone can apply for payday loan. It is easy, fast and convenient. It gives you a peace of mind once your loan is easily approved. You are always assured that emergency money is always readily available.

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