Tuesday, October 24th, 2017
Need Emergency Cash? – CASHe Can Help you NOW
An emergency backup fund is critical because an emergency can occur at any time and in any form. An accident, or any other loss, which your insurance doesn't cover, calls for fast cash. If you haven't saved up for an emergency, the only alternative would be to go into instant debt, even if it is for short-term. People with emergency savings, however, are less likely to go into debt. Several emergency scenarios that you cannot avoid include medical emergencies and accidents, life or death, vehicle expenses, or emergencies related to your home. An emergency fund has to be easily accessible so that you can either draw money instantly or transfer money to another account or issue cheques to essential parties.
If you have a steady income, you can save and insure against an emergency. How much emergency fund you need will depend upon your emergency circumstances and the math, therefore. It is always good to anticipate expenses and make provisions for an emergency fund accordingly. A small emergency savings fund could do well for you if there are no significant emergencies. On the other hand, if your emergency expense is higher than your contingency fund, and you are not able to encash your investments instantly, the best option will be to borrow.
A new age consumer, Joseph (name changed for anonymity) who worked for a call centre in Mumbai, was in need of quick cash to pay an unexpected medical bill for a friend immediately. His own savings fund, a recurring deposit with Bank ABC was still within the lock-in period. Bank ABC would charge a penalty of 1% to 2% for a premature withdrawal and Joseph would also lose his interest income. Joseph was in dire need of urgent cash to meet this unexpected medical expense outside his insurance coverage. When he started looking for alternative sources of funds on the Internet to help his friend, he learned about an alternative lender named CASHe. Finally, Joseph completed a secure loan application process through the CASHe loan app on his smartphone and got an instant personal loan approval and online credit. Joseph helped his friend with quick cash without losing his own savings interest income and was extremely pleased with CASHe's flexible loan repayment terms and affordable interest rate. Joseph repaid the loan within 30 days using the same cash giving app without any extra charges. Today, Joseph endorses CASHe as an excellent cash app to get easy cash during an emergency.
The above scenario suggests using just an app on your phone when you do not have available funds. If you have a sizable contingency fund in your savings account that can fund your expenses, you do not need to take debt. The only caveat here is you end up getting a low return on the money even if it were readily accessible. There are therefore counter arguments that advise borrowing from an available credit line over saving emergency money in a savings account. Also if you foresee the need for a larger emergency fund, keeping the entire cash in your savings account will fetch you low returns. Investing the same amount in diversified portfolios will yield higher returns. Although financial advisors advocate the need of having an emergency fund, they often advise against keeping its size large. According to experts, the size of a traditional emergency fund is usually your one month's salary in a bank savings fund. It is always advisable to invest anything higher in diversified baskets of securities.
As a takeaway, remember that an emergency fund has to be readily available when you need it. Although emergencies can be quite worrisome and tough to tackle, proper financial planning can help you manage both your short-term as well as long-term emergency expenses without you having to panic. If you at all need to borrow for short-term emergencies, an instant loan app like CASHe can provide fast money to cover your crisis.