Emergency cash – 5 tricks to have more cash in 1 month when you need it urgently
You want to buy the car and you need emergency cash…..
You want to go on holiday and you need cash…
You want to buy a bike and you need emergency cash…
You are loosing your job and you need emergency cash to survive a few months…
Emergency tax is the answer
What do you do? all you need is to have cash. It is not about money, it is just about cash. Remember cash is king!!! If you have it and don’t have to pay interest on having it, you will be fine.
These are five simple tricks to have more emergency cash within 1 month.
- Apply for a good credit card or two of them with the longest possible interest free for purchases. there are many of then available for 18 or 24 months or longer. Start using it for all shopping, this way cash will stay with you (£1000-£2000 per month of cash savings). Check out this post for more details
- Stop any non essential shopping, limit your expenses to food, bills, mortgage or rent (savings will depend on your life style but can easily keep £200-£1000 per month)
- Start cycling anywhere you can, this will save you some cash on petrol (£50)
- Review evere simple direct debit and close all non essential such as: gym memberships, TVs, games, amazon, anything which is non essential (it depends on your life style but easily can save £200-300 per month
- Identify additional source of income (work at restaurant, publishing, other way to utilise your skills (depends on your skill)
Remember, any debt or credit card must be carefully considered as you are living for money that does not belong to you. Make sure you always pay the minimum to avoid the interest. If you make a mistake you will pay charges. Your credit rating could also suffer. Make sure you have the plan to pay it off.
Financial traps: 10 most commonly accepted deadly rip offs
This is a simple list of very simple tools you can stop being ripped off. these are well known ripoffs most of the company are using and by a few actions you can save £100 or £1000.
- Always deselect auto renewal when buying any type of insurance. 9 out of 10 it will not be cheaper
- If you don’t have this option ring the insurance company and ask them to do not auto renew
- You can always be loyal and chose your existing insurer but it is better doing it having checked if they are competitive
- they will always send you some kind of reminder so do not worry if you think you will forget
Joining gym in January
- Everybody knows that after having tons of food and drinks during Christmas you want to join the gym. Gyms knop it and you will sign up for a yearly contract at the high price. you might not even use the gym after the first month
- If you want to join the gym select summer time and make sure you don’t sing up for more than 3 or 6 months unless the gym offers you financial incentives
- If you really want to lose some weight after christmas, go for the jog or walk, eat less during January and February and keep your motivation to join the gym. Delayed satisfaction is much more motivating so when you join the gym you will be more disciplined to train.
Being loyal to utility or broadband Provider
- always shop online for utilities and broadband every year
- Always check what are the best offers and haggle as much as you want
- You should not pay for a good broadband with phone line and TV over £40 per month
Prepaid cards for energy
- They are sometimes 50% higher than any contract paid ion direct debit
- It is not that difficult to sign up for the contract
- Early cancellation fees for quitting contracts are very low around £30 per fuels. So signing up for a year will be much cheaper tha prepaid cards
Not paying minimums bill on your credit cards
- Always pay your minimum credit card bill
- It is very expensive not to
- Your credit history might be affected
Buying extended warranty for your appliances below £100 such as electric kettle, alarm o’clock, toaster etc.
- It just does not make send paying 30% of the value of the product for ‘extended insurance’ for the product which you will buy again in 2 or 3 years
- You have the chance to buy another type of product
- Nobody really knows how they work
- they are good for more expensive products you are likely to have for more than 3-5 years
Buying car insurance from the local broker without checking online
- Unfortunately local brokers are less competitive
- It is not the rule so always check them and check online
To go shopping while being hungry
- No comments here, if you are hungry and go grocery shopping you will buy food you don’t need
Buying petrol or diesel on motorway services
- Food at motorway services is generally 10%-20% more expensive. This goes up at night.
- Buy a minimum if you have to and don’t have time and refill up to full tank when you get off the motorway.
- It is a good utility to have but don’t use it
- It is easy to get into the expensive small debt trap
How to have your financial backup at all times – 5 simple rules that will help you
Financial backup, sometime called emergency fund is the sum of money you want to keep in case something unexpected happens. There is 5 rules you want to follow when dealing with emergency or back fund:
You need to understand what the backup is and use it only in these defined events. The unexpected should be any event that stops you from making money such as:
- job loss
- serious sickness
- family emergency
- any other serious event that you can not predict
You want to set up clear rules what the emergency is not:
- It is not car repair
- It is not buying latest model of the car or game console
- It is not the dress for the unexpected party.
- It is not meal you have to go and you did not plan
You need to set up the right amount of financial back up:
- It should easily allow you to survive without any income from 3 to 6 months, so for the UK average family with the average mortgage is should be around £10 000 – £12 000. It does depend on your employability, skills and lifestyle but generally when you have no income you should limit your spendings drastically
- You should also keep the reasonable credit line and when something is coming such as redundancy or illness you want to start using this line such as interest free long term credit cards or interest free loan in order to keep the financial back up intact.
- even when you have your 3-6 months survival fund keep adding to id every month. Adding a very small amount will increase your financial security
Understand what your basic needs are and spend back up in emergency situation
Never use the backup for anything else.
This is the most important rule and crossing this line will put you at risk. You can not even borrow you backup nor use it as the overdraft. Make sure that money is untouchable at any time
Following these 5 simple rules will help you to feel more financially secure and independent.