Planning to build an emergency fund? Here is what you should know

You have an amazing life. Your job is sufficient. You have more than you need. You are nearing your financial goals.

Does the above remind you of yourself? Are you certain that you are financially stable? Think again!

Imagine something big comes up. A doctor announces that your wife needs a surgery or your car breaks down and requires fixing, or in the worst-case scenario, you lose your job! That job was your only source of income and now your life is not that amazing anymore.

However, there is a simple way to prevent that from happening. All you have to do is start building an emergency fund!

Tips on Building an Emergency Fund

Let us help you in figuring out how to build an emergency fund by following the simple tips below:

While saving money is difficult, especially when you are on a tight budget, it is not completely impossible. The trick is to go slow and work on your emergency fund with consistent savings in small amounts rather than putting chunks of money in, at any one time, as savings. This will help in growing your emergency fund steadily.

Below are some amazing strategies to assist you in getting started:

  • Set up an automatic deduction system on your paychecks. For example, $25 can be deducted from your weekly paycheck and it is deposited in your savings account. This way, you will have a saving of $1000 in about a year’s time.
  • Using your tax refunds and work bonuses as savings is a very effective way to strengthen your emergency fund in a very short time. The average tax refund according to IRS for the year 2015 was around $2,900. If you even put aside half of it as savings, it will develop your financial savings quickly.
  • Try to save as much money as possible by cutting extra expenses on a monthly basis. Put these savings in your emergency fund.
  • Control your regular expenses. For example, look for a cell phone plan with lower costs. Add the saved money to the emergency fund, even if it is a small sum. Similarly, you can increase your car insurance deductible and use the savings to build your emergency funds.
  • Use a savings account for your savings as it can allow you to withdraw your money whenever you need it. Putting it into stocks or other investments is risky as there is always a chance of losing it.
  • Always hold on to the change. No matter how insignificant you think that coin is, keep it. With every dime you save, the balance will grow and soon you will have a dependable savings account.
  • A great way to save money is through restructuring your mortgages. Try finding a cheaper mortgage and the savings you make from it can go to the emergency fund.
  • Play safe and never use all your savings for a vacation, simply on a hunch. It is better to plan and live well in the long term, than to live in the moment and be miserable for the rest of the year.
What Are Travel Points

You can earn travel related rewards and points for using your credit cards when you travel. These extra points or miles is precisely what makes so many people get additional credit cards in hopes of maximizing the points.

There are three options that come with this.

  1. Fixed points
  2. Transferable points
  3. Co branded cards

Fixed value points are the simplest out of the three. The best thing about them is that you always know what you can get. There are zero surprises when it comes to using these points. On top of this, you earn points on all flights that you book, which is what helps maintain the elite status.

Transferable points are what you avail rewards from various alliances and partners. Airline rewards are usually not attached to the amount that you pay on a ticket. If you know how to work with the system, you can easily avail what would have been expensive travel tickets for a low quantity of miles.

Co branded cards do not have the flexibility to be transferred to alliances and partners like transferable points. Co branded cards are the ones that usually get you benefits on free checked bags, lounge access, elite miles, etc.

Different Ways to Accumulate Miles

Using credit cards is not the only way one can gather airline miles. You can accumulate these points by doing things like shopping, eating out, etc. Most people do not fly that often, but they do save up on some pretty impressive rewards which they avail for a vacation, for instance. Here are some of the different ways you can gather these miles that do not involve you boarding a plane.

  1. You can earn points on availing dining programs that are airline specific. The points you earn spending your money here is to promote the utility and consumer base of such programs.
  2. Use airlines that have bonus options so that you can use their programs as portals to sites like Best Buy or Target. There is a proper list of such bonuses online.
  3. You might want to research on different financial institutions and the perks they offer. For example, banks will provide customers miles just for opening a new account with them. Fidelity is one such organization to award you with these if you invest with them.
  4. Most people do not know that you can even earn miles for filling out feedback forms and participating in surveys online. Emiles is the best example of this. To stack on some extra points, just answer a few questions.

Which Credit Card Should You Pick For Most Rewards

The best way to pick a credit card is not by the rewards it offers but by what you need it for. A card that doesn’t help you with your spending but gets you great points is not exactly a very beneficial credit card.…

What Are The Various Steps on Taking a Car Loan?

Are you looking to buy a car for your family? If you lack car finances, you can apply for the car loan. Car loan is that part of the general finance that fulfills the dream of acquiring a personal vehicle. One can turn to the local bank for getting a loan. To get the loan at earliest possible time, it is important to follow the right steps. It is the fantastic way to get your dream car within the short span of time. When compared to other forms of loan, a car loan is much better since it does not need the proof of income, proof of asset or an impeccable credit history. Automobile lenders are very much aware that it is not possible for borrowers to meet all the criteria and thus they easily forward the loan. Hardworking people can get the required financial assistance with the loan. If you are wondering how to get the car loan, check out the steps.

Check out the credit score

bcf25a4db4556ea760e58a9f766be9b8The rate of interest you pay over the loan will be dependent on credit score. Credit score is very important when it comes to applying for the loan. As the first time buyer you may not be aware of this but it will sound obvious for those who have applied for loans before. If your credit score is high, you will get car loan at lowest rate of interest. Thus, you save money on interest. The lender will analyze your credit report to check out the score. Get your credit report to make sure that the score is perfect.

What amount can you afford to pay? 5-car-shopping-tips-for-drivers-with-bad-credit_711_40051477_1_14039662_500

Picking up payment is the second step while you take car loan. You need to figure out the amount which you can pay realistically every month. The amount must be such that it does not strain out your budget. After knowing the amount, you may plug it in the loan calculator online. This will let you know the amount you can afford to pay. It is seen that car loans generally come in 3 years, 4 years to 6 years term. If the tenure of the loan is longer, your monthly payment will be lower. But then, if the loan term is long, you will stay upside down for longer period. Make sure, you also keep aside some money for car insurance and other funds. An insurance broker can help you out in this regard.

Gaining pre-approval: a must

4One can shop for the auto loan over the internet or can even move onto the bank or local credit union. Check out different sources and do not restrict yourself to banks. Find the amount of loan that the lending institution can offer you. Getting pre-approval for the loan is equally important. Only when you qualify for the car loan amount, you will have a pre-approval. This will act as black check for purchasing the car. Thus, it can be said that for every loan, credit score is important. If the credit score is bad then also you can get the loan but the rate of interest will be high. There are many local borrowers who forward the loan.