Why you Need Short Term Loans and How to Manage them Efficiently
Budgeting a monthly expense is always a challenge, especially when you have a full family.
The bonuses that you expected did not quite arrive or at least did not come in time. You might have calculated other income that did not really yield. At times it can be due to unexpected expense that we forget to foresee or perhaps the amount of expense comes out to be more that what we initially planned.
Ultimately, when expense comes suddenly in an unplanned way, it does drain the family budget in an unwanted sort of way.
This is where you start looking for some funds desperately and mostly in the wrong places. But what can one do, in times or urgency, our thought process does not really fall in place. Banks have so far contributed almost zero in this financial sector. They have their own reasons and we can blame the extra paperwork which keeps such customers away or not enough return for the banks themselves.
If you are in an emergency situation or you aren’t looking for funds immediately but want to be prepared for the future, then this article can help you learn more here.
5 Situation where you might need a quick loan and how to prepare yourself in advance so that you can beat it without a loan.
- Family Emergency – Keep some funds aside for such emergency. This could mean avoiding fast food, travel or road trips. Even entertainment expenses should be lowered if required because this emergency fund is the primary thing one should be creating.
- Medical Emergency – Get a Health Insurance that covers most medical emergencies. Try to get this insurance as soon as you can, because when you are healthy and whole, you will get excellent rates and schemes. Unfortunately, medical insurance is something that you can’t get when you need it most. If you have a major disease and you don’t have insurance coverage for it – it is already too late.
- Purchase of Essential Goods – This can include computers or other important things that are needed to run a business or service. There are certain things whose requirements might come overnight perhaps due to a sudden breakdown or something. Stuff like fridge, microwave and many other utility electronics fall under this category.
- Purchase of Entertainment Gadgets – Entertainment is important too, but when you have an emergency on your hands or you are trying to escape one by building a safety fund – you can lower down or completely cut down on your entertainment costs.
- Cost of Travel – Travel is part of life and one should take occasional trips and holidays to keep a good mental and physical health. But this too can be minimized depending on the requirements.
There are ways in which one can prepare for unexpected expenses. Every cent borrowed is a future trouble and debt is never your friend no matter how tempting it seems.