From a transmission that tanked out in the middle of a road trip to a fridge that stopped working on Thanksgiving morning, when it comes to the reasons our customers need some extra cash…we’ve heard it all. You can’t always plan for all of life’s little unexpected (and costly) inconveniences, but you can financially prepare for them. A personal loan from World is a great way to build your emergency fund.
What is an emergency fund?
Think of an emergency fund like a bank account funded with cash you set aside for large, unexpected expenses. These might include:
- Medical or veterinary bills
- Home repairs
- Appliance replacements
- Automotive repairs
Do you need an emergency fund? (Spoiler alert: Yep!)
Even the most organized planners among us can’t plan for everything. (At least not without a magical crystal ball.) At some point, we all find ourselves facing unexpected expenses. Without an emergency fund in place, these moments can go from feeling like a minor inconvenience to fully devastating. Often, people are tempted to turn to credit cards or payday loans, both of which only create more financial strain thanks to high-interest rates and fees.
With a fixed rate and repayment schedule, a personal loan is a much smarter option for covering unexpected costs and large purchases. There is no fine print. No tricky games. You’ll know exactly how much money you’re getting and how much your payments will be.
How much money do you need in your emergency fund?
As with most things money, more is better – but some is always better than none. Everybody has to start somewhere. Pick a reasonable goal to get started. As you continue adding to your emergency fund over time, you’ll begin to see your savings grow. Whatever you do, resist the temptation to borrow money from this fund to cover non-emergencies. It should be saved exclusively for the moments when you need it most. When the day comes, you’ll be glad you have it — and World will be there to help however we can.
Ready to get started on your emergency fund? Click here to apply for a personal loan from World.