Did you recently graduate from college?
If you’re out on your own and now responsible for your own bills and expenses, it can take some careful planning to stick to a budget. But one thing you may not have included in your monthly financial plan is what to do should a sudden emergency arise.
Having to gain access to some fast cash is something that you may not be able to do too easily. Aside from setting some money aside, there are a few other options. Here are some examples of why saving money, especially after college is so important.
Fast Emergency Cash
Everyone faces a sudden emergency situation throughout their lifetime, some people more often than others. While you can’t avoid these unforeseen expenses, such as a trip to urgent care or paying for veterinarian bills for your pet, it’s hard to predict when they will happen and they can also occur at the most inopportune times.
Sometimes, you need the cash immediately and don’t have time to wait for a decision from the bank or credit union. A payday loan alternative, like Maxlend may be the best answer. You can obtain the funds you need quickly and the qualifying process is fairly simple. All you need is:
- Proof of income
- Verification of citizenship with a driver’s license or state ID
- A valid checking account
There is no credit check, but you can’t be in an active bankruptcy case or be involved in a bankruptcy or debt relief program. Borrowing is simple and you can pay back the loan in flexible and affordable payments tailored to your budget.
If you don’t have any cash saved up after leaving college and you have to take care of an urgent situation, a payday loan alternative may be a good option for you.
Down Payment For Large Expenses
Keeping money in your savings account is important for emergencies that pop up, but it’s also good for down payment purposes. If you plan on purchasing your first home after college graduation, making sure that you have at least a 10 to 20 percent down payment can help increase your chances for loan approval.
It also improves the equity in your home and will reduce your overall monthly payment. Shopping for a new car? Even a used car requires some sort of down payment. If a good deal comes up on a car you’ve had your eye on, don’t hesitate to close the deal with providing a solid down payment to help speed up the lending process.
Start by taking a small portion of your weekly paycheck and adding it to your savings account. Set a goal for how much cash that you wish to accumulate. If you get a pay raise, increase the amount that you add and try to avoid spending it on splurge items such as clothing and jewelry.
Being out on your own after graduation means that you’re likely responsible for your own health and auto insurance. This may seem affordable, but have you considered the cost of your deductibles should you have to use your insurance.
Having an HSA or health insurance savings account provides a great way to take a small portion of your weekly paycheck and deposit into your medical care funds. From there, you can access the account every time you need to pay for a medical procedure or office visit in order to meet your deductible.
Making sure that you have enough in your savings account to pay for the deductibles for all of your insurance needs is essential.
Paying Off Debt Faster
Another reason to have some money tucked away in savings is to manage your debt. Always have enough saved to at least make the minimum payments on your credit cards and monthly expenses should you suddenly lose your job or only source of income.
This will prevent your debt from spiraling out of control. If you have the opportunity to transfer a credit card balance to a lower rate card but you have too much debt load, use the money to bring the balance down and to qualify for the transfer. Being able to pay off debt is important to your financial lifestyle. This keeps your debt-to-income ratio low and helps to improve your overall credit rating.
Saving money is important, especially when you find yourself embarking on your next life adventure post-college. Gaining access to fast cash is vital during an emergency; just make sure you have enough on hand to get through a tough financial stint.