Seven Ways To Manage Your Emergency Fund In Idaho

Managing an emergency fund takes more than saving money, and Idaho Title Loans, Inc. has a few helpful tips to teach you how to manage those funds well.

This article will share seven financial planning tips to help you ensure your emergency savings are ready to help you overcome any financial challenges you experience.

Let’s get started!

7 Ways To Manage Your Idaho Emergency Fund

One of the most important things you can do for your personal finances is to have an emergency savings fund. However, managing that fund requires more than just putting money in an account.

To understand just what that means, here are seven essential ways to manage your emergency fund in Idaho:

1. Set Clear Goals

The first step in managing your emergency fund is to set clear goals for how much money you want to save.

The rule of thumb is to save enough money to pay for your living expenses for 6-12 months. However, you might prefer to save more money than that if your job lacks security or if you have many dependents.

Whatever the case, take some time to determine your emergency savings goal.

2. Review Goals Regularly

Setting clear goals for your emergency savings is essential, but you must also review those goals regularly. That’s because your personal situation might change and you’ll want an emergency fund that reflects that.

For example, if you decide to become self-employed or start a business, your fund must be larger than what it is now.

3. Automate If Possible

Setting and reviewing goals aren’t the most challenging things to do for your emergency fund. Instead, the biggest challenge is regularly depositing money into that account.

One way to simplify things is to automate your savings, if possible. Many banks and finance apps have automation features that will transfer money from your paycheck into a separate account without any effort on your part.

As a result, you can rest assured that the money will be parked in that account when an emergency occurs.

4. Keep It Liquid

Remember: the money you save is for covering urgent costs. That means you must be able to access it instantly.

For that reason, it must be liquid. It must not be tied to any investments or require much effort to access.

Part of that fund can be in cash that you keep somewhere safe. However, you should keep most of it in a savings account you can withdraw from on short notice.

5. Replenish After Each Use

Suppose you experience a crisis and spend money from your emergency savings fund. In that case, your top priority must be replenishing that money as soon as possible.

In other words, you should pause all other investing or unnecessary spending to ensure that the dedicated account has been replenished according to the goals you set earlier.

6. Avoid For Non-Emergencies

One of the challenges of managing an emergency fund is avoiding the temptation to use that money. That temptation can be strong when there is something you want to buy, and you have a lot of cash saved up.

But remember this: the only thing that might stop a financial emergency from ruining you is that emergency fund. So, using it for non-emergencies is very dangerous.

7. Supplement If Needed

Lastly, part of managing your emergency fund in Idaho is knowing how to supplement that money if it isn’t enough.

If that happens, one option to consider is borrowing extra money through quick and easy loans like title loans.

Here are some title loan advantages that you might find helpful in an emergency:

• You only need a few items to qualify, namely your lien-free car title, a state-issued ID, such as a driver’s license, and your vehicle for a quick inspection to determine the amount you can borrow.
• You could qualify for as much as $15,000, depending on your car’s value. That amount could help you cover some or all of your emergency costs.
• You’ll get plenty of support from a friendly representative who will guide you every step of the way.
• You’ll get paid quickly if approved, possibly as early as the same day or by the next business day.

A fast emergency loan like this one could supplement your savings and help you overcome your financial hurdle quickly.

Access Emergency Funds Now!

Following these seven financial planning tips for your emergency fund can be the key to giving you plenty of peace of mind. When done correctly, you’ll know your emergency fund is ready and waiting to help you deal with a financial crisis quickly.

Idaho Title Loans, Inc. can help you access additional emergency funds if you don’t have enough saved up. Start the loan request anytime by submitting the short online inquiry form, and one of our friendly representatives will call you with details soon after!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.