The Ultimate Financial Emergency Checklist

November 6, 2020 | Daniel Dewitt

emergency fund plan

 

Most of Americans are living paycheck to paycheck. Over the years, multiple surveys have found that around 70% of working adults wouldn’t be able to handle a $1000 emergency without asking for help if hit right at the moment. And emergencies these days tend to cost more on average.

These days, people seem to be more mindful of their finances and understand that emergencies are something they should be ready for. But getting started could be tricky. Here’s our ultimate financial checklist that should give you an idea of what to do.

Have This Checklist Handy When You Have An Emergency

Do You Have An Emergency Fund?

The first thing you should do is set up a separate emergency fund. This is your main safety net. You shouldn’t touch this money until something happens that calls for you to withdraw cash. Do not touch the emergency fund just to buy something under the promise that you’ll replenish it later. Discipline matters with this one.

Is Your Emergency Fund Sufficient?

As mentioned above, a typical American emergency usually costs over $1000. When funding an emergency fund, try to account for at least a month of normal expenses. Losing a job, after all, is also an emergency – and a month’s worth of budget is likely to cover most of the other types of emergencies you might encounter.

Have You Set Up Sinking Funds?

Setting up sinking funds for large expenses you know about is a good way to ensure you won’t blow holes in your budget and will need to delve into your emergency fund. Set them up separately from each other (for example “Christmas sinking fund” and “Mom’s Birthday” shouldn’t overlap) and use for the specific purpose only.

Have You Set Up A Separate Medical Sinking Fund?

Medical emergencies are some of the most terrifying financially. Make sure the sinking fund for medical expenses is separate from the general emergency fund. You don’t use this one when your car needs unexpected repairs.

Are Your Savings Automated?

Make sure to contribute money to your emergency fund, sinking funds, and savings account automatically after getting paid. This way you won’t be tempted to postpone contributions because of other expenses.

 

emergency plan ready

 

What To Do If You Don’t Have An Emergency Fund

If you’re one of the many Americans who are only starting their financial literacy journey, you might not have managed to set up your emergency fund yet.

And since emergencies do not tend to wait around the corner for convenient times, you might need to deal with it promptly even without security measures in place. In cases such as these – when you need cash and you need it fast – title loans online are likely the best option you have.

What are the Benefits of Tennessee Title Loans Near Me?

Title loans are some of the easiest loans to take out. Since it’s a secured type of loan and your car’s title will be acting as collateral, your hands aren’t tied as tightly as with other types of loans. Plus, if you stick to the repayment schedule, you can keep your vehicle. And we can accommodate pretty much any customer and work with all types of credit scores these days. So whether you have a great credit score or a bad one, you can still apply.

All in all the entire process will take you less than an hour. Depending on the lender it might even take as little as 30 minutes.

How To Get A Title Loan in Tennessee

Thinking of getting a Tennessee title loan but not sure what the process entails? Check out our process:

  • Start by filling out our short online form on the homepage;
  • We will give you a call when we get your form to confirm your information and walk you through the rest of the process;
  • Then you can head to your nearest Tennessee title loan locations. Make sure to bring your ID, vehicle’s lien-free title, and vehicle with you;
  • A loan rep will then sit down with you and review your items. They will also inspect your vehicle to determine how much you qualify for;
  • If you can get approved, you will learn all the loan terms and, once you fully understand and agree, sign the agreement. Once the paperwork is signed, you will get the cash.

No matter what, going through a financial emergency is difficult and stressful. But if you make sure to plan you can have a much easier time getting through your emergency. Your plan doesn’t have to be too complicated either; just make sure your emergency fund is secure and you know about financial assistance. Keep this checklist in mind and make sure to learn about title loans. It could be a valid option when you need some help.