Are You Financially Prepared For The Unexpected?

Every year, a large proportion of Canadians face an unplanned emergency expense. And when those unplanned expenses come, do you have the savings set aside to ensure you can make all your payments? When it comes to making sure all your bills get paid and you’re not maxing out on all forms of payment methods, people turn to GoDay for a payday loan for quick and easy cash. According to Investopedia, an emergency fund is an account used to set aside funds needed in the event of a personal financial dilemma, such as the loss of a job, a debilitating illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses. An emergency fund is recommended and can make a significant difference when it comes to your finances in times of need. You will most likely have to deal with an emergency resulting from an unexpected situation that will affect your finances at some point and it is usually these unplanned situations that do not always give you time to adjust your budget. You may not be able to predict when a financial emergency will happen, but you can at least be prepared for one.

How To Start Building Your Emergency Fund

One of the main questions people ask about when starting an emergency fund is where to start? Like any kind of financial decision, doing your research into what is best for your lifestyle and finances is what will determine how to build your emergency fund and how it will affect your financial future. It is kind of like learning how to budget for the first time. The ideal emergency fund lets you see your money grow and gives you complete access to your funds quickly and easily when you need them. You should consider accounts tax-free savings account or a high-interest savings account. Some people also use Tax-Free Savings Accounts or TFSA’s in times of need, although access to your funds isn’t always as easy compared to a high-interest savings account. In cases where people need money immediately, that is where we can help. Within 24 hours you will have the cash you need to help with any financial bind you are in. Curious about how much you should have in your emergency fund? RBC has a tool to determine how much you should have saved in case of an emergency based on your current salary.

 Be Realistic About Your Savings

Who else feels like they are forever trying to save their money? Our secret to you – everyone is! Whether you are saving for a specific item, the vacation you deserve, your dream home, or retirement, saving money is essential for ensuring that you will be financially successful. Saving for your emergency fund won’t happen overnight. It can take time to reach the desired amount for your emergency savings. It is better to start with a small amount so that you don’t become discouraged. Start by figuring out what you can put aside every week, even if it is a small amount each month, a little goes a long way over time and you don’t want to have any other bills and savings to suffer. As a general rule, it is recommended that you save the equivalent of three to six months of your regular expenses if a situation were to ever happen. These amounts can sometimes seem out of reach, which is why we recommend saving gradually. Little things like making saving money a habit by automating your savings by setting up automatic transfers to your emergency fund account or creating savings reminders in your calendar are a great place to start.

When To Use Your Emergency Fund

The only time to use your emergency fund, which is why it should be different than a regular savings account is when you need to prepare for the financially unexpected. And no, shopping sprees don’t count because an emergency is a major and sudden need that’s not part of your current budget and that’s unplanned. Before using all or part of your emergency fund, determine whether you’re really experiencing an emergency or if the expense is something that can be put off until you’ve had the opportunity to save. When it’s truly an emergency, do not hesitate to use your emergency fund. On the other hand, if you think that you can get by or find you do not have a major need for this money, do not touch your emergency fund. If you feel that other financial options such as applying for a payday loan or using a credit card to pay the balance in full by the end of the month, this may be a good option depending on your financial needs. If you do not think that you would be able to pay the balances back in full, then hold off on that expense until you have saved enough. While your emergency fund should be easy to access when you are in a time of need, it is very important not to let yourself be tempted by this money and to leave it for when there is a real financial emergency.

The Financial Consumer Agency of Canada (FCAC) share some examples of unexpected financial emergencies including:

  • Having your car breakdown
  • Emergency visit to the veterinarian
  • Job loss
  • Health problems that prevent you from working
  • Medical expenses/fees
  • Home repairs or renovations (flooding, broken appliances, roof repair)
  • Death of a loved one
  • Unexpected travel (no, not a vacation)

Unexpected expenses that you would use your emergency fund should not be confused with occasional expenses such as preparing for the school year, special occasions, events like birthdays or weddings, or holiday expenses. Occasional expenses like these should already be planned for in your budget.

Know Your Options

You always want to be prepared, especially when it comes to your money. But when a financial emergency hits, do you know your options? Some people have their emergency funds ready, but others would struggle with where to get money quickly. This can cause major financial stress for you and your family. This is why it is important to be prepared for any kind of financial situation. Depending on what you need money for may also determine what route you chose to get financial assistance. As we mentioned above, some people would be able to get by with putting their expenses directly on their credit card or getting cash advances along with using all available funds. But there are other cases, such as job loss or other issues that may prevent you from working and earning money that your credit card cannot always pay for. In those cases, do you know what you would do? Some people have family they can turn to in a time of need, while some people have a line of credit with their bank that they can easily access. But because not everyone’s financial situations are the same, the way people chose to handle unexpected expenses is different. This is where GoDay and our short term loans also come into effect. Keep reading to see why people are turning to payday loans when it comes to financial uncertain times.

People Are Turning To Payday Loans

When times are tough and the unexpected happens, a payday loan could be the answer. That is what we’re here for. In times of a financial emergency, GoDay helps you get from point A to point B so you are financially prepared for any situation. According to the Financial Consumer Agency of Canada (FCAC), the vast majority of payday loan users shared that they were turning to payday loans to help pay for necessary expenses. Roughly 45 percent of people are typically using payday loans for unexpected, necessary expenses such as car repairs, while 41 percent used them for expected, necessary expenses such as utility bills. Based on the FCAC’s findings they highlight the need for people to have savings set aside in the case of a financial emergency so that they can be prepared for the unexpected and, when needed, these funds can be accessed when having difficulty making ends meet.  

So why are people turning into GoDay when they are finding themselves in a financial emergency? Because being speedy, smart and secure is the GoDay way. Our payday loan applications are accepted and processed instantly by our automated system 24 hours a day, seven days a week, so you will have the peace of mind knowing your cash is on its way. Available from any device, you can get a payday loan with us on the go and we make keep you updated on your loan application process every step of the way. From our instant approvals process to email notifications on the status of your loan, we stay in touch so you know when you’re getting the cash you need. One of the first things everyone thinks about when it comes to payday loans is the interest rates and fees associated with getting one. But that’s the difference between GoDay and other payday loans or short term loan lenders – we don’t believe in hidden fees. This means that at GoDay, we don’t have hidden fees or extra charges on top, we disclose all fees up-front, because at GoDay what you see is what you get, so when you’re looking at a payday loan with us, there won’t be any surprises. Our short-term cash-flow solutions are here to help get you back on track – not further from it, especially in a time where you are dealing with the financially unexpected. In the event that there is a financial emergency and people do not have the savings or emergency funds available, GoDay can get you the cash you need quickly and easily. Apply now.

How To Come Back Financially After An Emergency

If you have had to use your emergency fund for unexpected costs, this means it is time to start rebuilding your finances again. Or if you have experienced unprecedented costs and financial expenses without having emergency savings in place and didn’t know how to go about covering your expenses, it is never too late to start setting up a financial cushion for yourself. It can be difficult to come back from needing financial assistance, especially the ones you are not prepared for. But these are also opportunities to learn and prepare for your financial future. And bouncing back financially will feel like you are starting over, which will take time and planning – including things like a brand new budget. But like saving for anything, it needs to be a priority. And it is not usually until you are in a situation where you need financial assistance to make you realize what you need to consider and what kind of funds you require. There are many resources out there (including our blog) to help you with your finances and any financial goals you are trying to achieve. It will feel impossible, especially when dealing with a financial emergency, but you will get through it. And if you need our help along the way, that is what we are here for.

So when it comes to making sure you are prepared for the unexpected, it is worth having a financial plan in place. And for the times you are stuck and in need of a solution, GoDay is here for you. We can help you bridge the gap and get you the emergency cash you need, quickly and easily so you can get back to what really matters.

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