Kash Avena
According to a World Bank Study, only 31% of Filipinos have bank accounts. This means that in times of an urgent financial need, two thirds of us may resort to getting a quick cash loan. Learn how to save hundreds if not thousands of pesos by starting a Rainy Day fund instead with these 5 simple tips.
Let’s face it – saving money is hard to do. Even if you’re conscientious about your money and spending, there are still unforeseen expenses that can catch you by surprise. Your roof may be in dire need of repair this typhoon season. Your car battery can suddenly give up the ghost. Your kid’s field trip might cost more than you prepared for. Maybe you decided to switch careers and are currently between jobs. Whatever your financial need is, it’s nothing that a Rainy Day Fund can’t cover.
Simply put, a rainy day fund is money you’ve set aside specifically for urgent but non-recurring or unforeseen expenses. Sadly, most Filipinos still resort to a quick cash loan to cover these urgent, unplanned expenses. Some of us don’t realize that we can be losing hundreds if not thousands of pesos, especially if you get a 5-6 loan or a loan that asks for a 20% interest. For example, if you borrow P20,000 from a 5-6 lender, you’ll have to pay back P24,000; that amounts to losing P4,000!
If you’ve never tried saving for a rainy day fund, now’s a great time to start. Make sure you don’t drown in debt or financial trouble with our six simple tips:
Tip #1: Make sure you spend according to your needs. Spending is made a lot easier in this day and age of consumerism. You don’t even have to go to the mall to blow your hard-earned money on the latest pair of sneakers – you can just shop online using your phone. Tempting as it is to “treat yo’ self” every payday, make a monthly budget plan consisting of essentials and stick to it. Your wallet will thank you for it.
Tip #2 Save windfalls. Received an unexpected bonus from work? Your 13th month pay got in early? Or maybe your favorite aunt from abroad sent you a cash gift. Whenever you have a surprise inflow of cash, make sure to add it to your rainy day fund.
Tip #3 Sell items you don’t need. Do a check around your house for items you don’t need or use anymore. You can generate money and sell them online through trusted sites such as OLX or ebay Philippines. You can also try pawning your things through Pawnhero, an online pawn shop.
Tip #4 Automate your monthly savings though an online account. For those with bank accounts: apply for online access to your salary ATM account and create an automatic transfer to your personal savings account. This will lessen the chances of you spending your intended savings. You can ask your bank teller for assistance on how to do this.
Tip #5 Commit to saving money every month. It does not have to be a big amount. Setting aside even P20 daily will get you to over P7,000 worth of savings at the end of the year. This can already cover any urgent expense you find yourself having, and then some.
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A Quick Cash Loan Does Not Have to Be 5-6
Not all quick cash loans are created equal. Unlike informal lenders, banks and some private lending firms can give you a short-term cash loan at better rates. Find the right quick cash loan for you at Loansolutions.ph, the country’s #1 loans marketplace. Our network of Loansolutions Concierges will find you a legitimate loan you can qualify for, and help you with the whole loan process: from application to approval.
