For many months, many of us have been vainly hoping to “save a few pennies” for unexpected expenses. Unfortunately, it is not so easy, because money is always a magical way to quickly divide. How to save effectively and without great sacrifices? There is a good way to do it. We can put down money even when we took out a loan.
How to save effectively?
Expert of Finance Sphere SA explains that it is best to build a so-called “Safety cushion”. It assumes the payment of a larger amount, eg to an account or an online loan installment on the principle of creating a margin for paid bills. Thanks to this, even temporary budget difficulties will not destroy our peace. We will have so-called an emergency fund that we can use whenever necessary, avoiding the spiral of debt .
How much should the financial cushion be? According to its definition, it must provide our finances with a balance in crisis situations. Therefore, the airbag should initially have three times the amount of money we spend each month. Once we set aside this amount, we can strive to achieve 6- and then 12-month security. Then we will be prepared for every unforeseen expense. And we will not have to find out what the loan loan differs , because we will not need high debts.
Depositing additional amounts will eventually yield results
“For example, if our installment is PLN 1000, let’s pay PLN 1,100 to the bank account,” says Raffy Tomy, the president of the Sfery Finansów SA management board. Proceeding in this way will result in building a safety cushion, ie obtaining an additional amount for repayment. It is worth taking installment loans to later use them to build an emergency fund. Acting in such a way, in case of unforeseen financial problems, we will have a reserve in the form of money deposited. Put off as much as we can, trying not to use this money without actual need. In addition, by paying off the loan on time, we will build a positive credit rating and we will be credible for financial companies.
Always take care of home finances
Taking care of home finances, we will not have to borrow to pay current debts. We can use extra money for a weekend family trip or for buying new home equipment. Remember that keeping an eye on expenses is especially important when we have additional obligations on our heads. In addition to normal expenses, we have to pay extra fees. Therefore, let’s find out in advance how to adjust the amount of installments so that we can always pay your loans on time.