How Much Emergency Cash Should I Have?
There is no doubt that financial emergencies or unexpected events are a natural part of life. Even if you are a pro at budgeting, medical emergencies, job loss, natural disasters, sudden economic downturns, and other unforeseen expenses have the ability to catch you off guard, thereby throwing you off financially. This is where having emergency cash comes in. But how much emergency cash should you have on hand to stay prepared?
You have probably heard this saying, “Save or have funds for the rainy days.” The rainy days in this context are emergencies, and the funds are emergency cash. This statement is for when unexpected situations crop up or in times of financial emergencies, you have something available.
Keep reading to learn more about how much emergency cash you should have, how to get emergency funds, and more. If an emergency cash loan sounds like a suitable way to handle a rainy day, Max CashⓇ is here to help guide you to your options!5
What is Emergency Cash?
The term “emergency cash” refers to money set aside for urgent financial needs or crises. Having emergency funding can help you cover or offset the expense of an unforeseen situation without relying on your credit cards.
Emergency cash is a safety net or a financial cover for unprecedented expenses. It can help prevent you from falling into debt or making hasty financial decisions that might have long-term repercussions. Having a dedicated emergency fund can contribute to overall financial well-being and peace of mind!
How Much Emergency Funding Is Recommended for You to Have on Hand?
According to many financial experts, it is essential to have enough emergency cash that can keep you afloat for three to six months in a savings account.
For instance, if your monthly expenses are $2,500, keeping the amount between $7,500 to $15,000 is advised.
However, while adhering to experts’ advice is essential, CNBC recently reported that nearly half of Americans lack an emergency fund, and 40% have less than $10,000 saved for a rainy day. If you don’t have emergency cash available, it is essential to explore your available options to get emergency cash assistance!
How to Get Emergency Cash Assistance
Life is full of unexpected twists and turns. There are many cases where saving or having emergency cash is challenging. As a result, you will need alternative options to help you get that cash to solve those financial emergencies. This is where getting emergency cash assistance is needed.
Some of the recommended ways to get emergency cash include the following:
Get a Secondary Source of Income
If your residual income is too low, then you may want to consider getting a second source of income. Whether you try freelancing, waiting tables, or getting a seasonal job at Lowes or Target, you can make some extra money on the weekends to supplement your income and get extra funding!
Online Fundraising and Crowdsourcing
Another option to get extra funds is to start online crowdsourcing and fundraising. There are so many online crowdsourcing and fundraising options to turn to for emergency financial assistance, including GoFundMe and YouCaring!
The accessibility level is medium. Creating the fundraising and crowdsourcing campaign is easy. However, getting the funds you need largely depends on various factors, such as communication skills and widely/actively sharing your campaign, which can be time-consuming. Also, getting the necessary funds could take a long time as people might not respond immediately.
Emergency Cash Loans
Finally, you could try exploring your available emergency cash loan options! If you do not have an emergency fund built up and an emergency comes along, you need a quick loan option that can keep up with you. Keep reading to learn more about the emergency loan options that could be available to you!5
How Can I Take Advantage of Emergency Cash Loan Options?
Depending on your state of residence, income, and financial situation, there could be many emergency loan options to choose from.5 Some of these loan options include the following:
- Cash Advance
A cash advance, otherwise known as a payday loan, is one of the instant loan options to choose from. With payday loans, you can potentially borrow just a few hundred dollars. The repayment plan is short and often due on your next payday. The application process can be simple, but you will typically need a bank account to apply.5
- Personal Installment Loans
With a personal installment loan, the repayment process is structured into equal monthly installments. The payment plan could range from a few months to a couple of years. Having a monthly installment can be advantageous because you know exactly what you need to budget for each month! Eligible borrowers could choose to receive their funds via ACH and access funding in as little as one business day. 2 5
- Car Title Loans
Car title loans are a secured type of loan and involve the use of a car title to secure the loan. Your car title serves as collateral for the loan, which makes the application process more flexible in comparison to unsecured loans.5
The amount you get is determined by your car’s value, your state of residence, your lender, and your ability to pay back the loan.1 5 One of the advantages of title loans is that you can still use your car even when you take the loan! Just make sure that you don’t skip a monthly payment
Why Choose Max Cash for an Emergency Loan?
Financial emergencies happen constantly, and having emergency cash available to handle unforeseen expenses is essential to stay financially afloat. If you find yourself in dire need of emergency cash, take advantage of your available options! That could include applying for a quick loan, such as a personal loan, cash advance, or a title loan.5 Give us a call at 833-207-9052 to learn more about your available emergency loan options! Max Cash does the hard work for you and connects qualified borrowers with the most qualified financial assistance option.5