The financial cushion is a great protection of the home budget against unwanted expenses.The process of its creation takes up to a dozen years, requires regularity, but not sacrifices. Saving money will be pleasant if we notice that thanks to it we can afford the purchase of a slightly more expensive thing or a longed-for trip The emergency fund will be built by multilateral saving. Saving money requires commitment and regular control of household expenses. The emergency budget created in this way will allow any unwanted commitments to be paid in the event of a crisis. Putting meticulous money over a dozen or so years, we will build a financial cushion that will secure the family budget. See http://www.sauvonslesrased.org/what-types-of-payday-lenders-can-you-then-take-out-of-this-amount/ for the scoop
What is a financial cushion and why it is made?
A financial cushion is nothing more than extra cash put away for a rainy day. As unexpected expenses can catch everyone, the accumulated capital will be suitable both for current fees and unexpected liabilities.
Collateral in the form of an emergency fund is created so that in the event of a sudden loss of work or health problems, you have the capital needed to support the family or pay for unwanted bills. Often, extra cash will be useful for any treatment or unexpected trip. The accumulated cash can also be invested, which will result in doubling the amount. The emergency fund will deprive us of financial problems and make our dreams come true.
Ways to save money
Creating an emergency fund will be enjoyable if we only take care of regularity in depositing cash. Here are some ways to save money:
- control the home budget – analyze your income and expenses, include in the report all medical appointments or additional charges related to, for example, the car, then decide how much you can put off for unexpected expenses on a monthly basis;
- create a shopping list – go to the supermarket with a list of needed products. It will allow you to buy only what is necessary. Food spoils quickly, so it is worth buying them in small quantities and on a regular basis;
- haggle – if you have the opportunity, negotiate the price. Sometimes the impossible becomes possible, and the wallet will remain a bit;
- use rebate cards and promotions – discount vouchers will cause you to spend less on planned purchases, and at the same time you will get discounts for others;
- plan your expenses in advance – advance planning of trip costs will allow you to estimate how much cash you can spend on your life or upcoming trip;
- Buy tickets earlier – both airline, PKP and concert tickets have a lower price if you buy them ahead of time. Since the exit or departure are certain, it is not worth waiting until the last minute for the full price;
- pay off your financial obligations on time – if you took out a loan, because you ran out of money, remember to pay your fees on time. You will avoid interest or mounting bills to be paid.
Saving without sacrifices – is it possible?
Saving money is not pleasant. Thoughts immediately focus on giving up current pleasure or away plans. This misconception often means that people do not want to put money down for a rainy day and prefer to live here and now. To succeed in raising capital, you only need to know how to manage your home budget. A minimal depletion of daily expenses over a longer period will result in additional cash and will not require sacrifices from us.
If we want to control the budget, let’s control how much we spend and what. Let’s not forget about borrowed money to someone, but also all financial obligations that have to be repaid on time. Having a loan or a loan does not disqualify us from saving. One should only know what indebtedness we can afford and control the amount and size of the installments that burden us.
Autosaving, deposit, Treasury bonds – choose your saving option
Despite the many ways to save, not everyone has a strong will to control expenses or regularly put them in a piggy bank. It may be helpful to have a separate bank account where we will accumulate excess cash. We can set up a bank deposit, where the accumulated capital will be multiplied. A good option offered by some banks is the autosave service, which consists in transferring usually small amounts from a personal account to a savings account. The money that accumulates may come from credit card transactions or transfers. It is enough to indicate the amount to be collected for these activities and put aside in the virtual portfolio. We can also choose the option in which the amount charged when paying with the card will be rounded up to the full value, from which rounding will go to our emergency budget.
The safest saving option is the purchase of Treasury bonds, i.e. securities sold by the Minister of Development and Finance. The State Treasury, which becomes our debtor, undertakes to give back borrowed money with interest. They are our profit. Thanks to various saving options, putting down cash will be easier and we will not unknowingly violate the financial cushion.