You’re probably told you should plan your financial future. You need to have a stable source of income, such as a job, a small business or even an investment. But not everyone has financial freedom. Even if you do have a source of funds, there are times where money won’t be as abundant. Here are some ways to fulfil your financial need during difficult times.
Loans
Applying for a loan can be a long and tedious process. Also, you need to keep in mind that you’ll be held accountable for the amount that you’re borrowing. But before applying for one, take a bit more time to think about certain matters. One is that since it’s a loan, there would be interest on top of the amount that you’re loaning. So in the end, you’ll be paying for more than what you’ve borrowed. Another one is the length of time for you to complete your payments. If you’re not able to pay on time, then there would be penalties in the form of additional fees.
As such is the case, don’t just rely on any loan company in Singapore that comes your way. Check if they’re a licensed money lender or else, you might lose more than what you initially thought.
Emergency Savings
You always hear and know about people who have multiple bank accounts. They have a bank account for specific purposes such as business, savings or emergencies. Having an emergency savings account can be useful in dire situations like severe financial loss come into your life. However, be strict about how you use those funds. Don’t gain the mindset that just because you have emergency funds, it means you don’t need a regular income. These funds are reserved only for unexpected circumstances.
Card Advance
If you’re one of those people who prefer to use credit cards over carrying money around, then you’re probably aware of making cash advances using your credit card. Just like loans, you can get money as credit, except for this, you can get it in an instant if there are automated teller machines in your area.
It’s important that you’ve kept a good banking record and credit score since these will determine whether your card advance will be approved. Also, do keep in mind that this is simply meant to cover immediate needs and is not a wise way of paying for everyday expenses. The interest rates of credit card advance tend to be higher than other loan options.
Everyone has their needs, and you can’t expect every day will be as good or as sunny as yesterday. The most crucial thought to keep is that you need to be prepared in case of immediate needs, such as financial emergencies. Apart from building an emergency fund, be sure that you’re aware of other viable options when you’re cash-strapped. It’s also essential to follow a budget religiously so that you can always keep track of where your money goes and prevent financial issues.
