If you are looking for a car title loan, you know better than anyone how important emergency savings are, yet you probably don’t have such reserves. Or perhaps you had some savings, but not enough for whatever difficulty you are going through right now.
Before setting aside disaster assets, it is important to know what crisis capital is.
- are not an investment
- are liquid
- have ATM or check access
- are 3 months of living expenses
- are not necessarily the same as 3 months income
- are for real emergencies only
Don’t be too concerned with earning interest on your reserve fund, the most important thing is that you have access to this cash when you need it. Look for savings accounts with ATM or check access. Three days spent waiting for funds to transfer from a savings account to a checking account is often too long in urgent situations. Those 3 days can cost you even more money. The best way to prevent any additional expenses in your time of need is to have immediate access to your own money.
A good goal to aim for is 3 months of living expenses. This number may be less than 3 months of income, but do the math, you may be surprised at additional expenses you may have to take on in the even of a job loss, such as non-subsidized health insurance. Living expenses include mortgage and car payments, groceries, utilities (eg. water and electricity) and insurance premiums. You do not need to include credit card payments, cable service and gym memberships. Real urgencies include job loss, serious injury or illness. For a typical family, you can expect your catastrophe stash to be around $10,000.
Until you have an emergency fund, auto title loans are the fast, hassle-free way to get the emergency cash you need, in as little as 15 minutes. Get started with the 2 minute form on the right.