Be Sneaky When Looking to Save Quick Cash
Everyone wants quick cash these days. The recession taught people well that relying on credit lenders most likely isn’t going to pan out the way they had hoped. Though many consumers relied on credit for years to get them out of financial binds, it wasn’t until the recession that people realized the true nature of lending. Lenders are in the business to make money and that means just like other businesses, they will do what it takes to avoid disaster and mitigate loss. When the recession brought difficult times to the market, the lending industry closed its doors to needy consumers.
Credit lenders and the market – Relying on cash
People who had cash reserves faired through the recession much better than those who didn’t. Consumers who listened to older generations were validated as they had the funds needed to maintain their lifestyles without drastic changes in spending. In retrospect, analysts are once again espousing the virtues of having a good nest egg to fall back on if disaster happens.
Tips on where to find money
The lesson consumers walked away with was to once again start saving. Pre-recession experts instructed people to have three to five months of expenses stocked away for emergencies. Post-recession, experts now say that number has grow to anywhere from six to nine month’s worth of cash reserves. So where should consumers come up with their extra money? It’s not as difficult as it sounds to find extra money, but it does take some sneaky tricks to keep building savings. Here are some tips:
- Consumers should set aside spending money. Just like parents give children an allowance, adults should use the same basic concept. Once the cash is gone, spending has to stop. It may be a difficult lesson to accept, but it does teach people to never go over a specified budget and plan wisely.
- Experts say that consumers should also find ways to motivate themselves into saving quick cash. For example, a hopeful consumer may want to buy a car. Using that motivation, he or she can commit to depositing their change and depositing $50 a week into a savings account that offers interest.
- Another trick to increasing savings is using the “round up” trick. For example, if a consumer makes a $12.13 purchase, they record the transaction as $13 in their register. Then at the end of the month, the consumer adds up their discrepancies and transfers the total back into a savings account.
- Paying bills via direct withdrawals can also help to save money. First of all, it totally averts the chance of a late fee on a forgotten payment. On top of that, it also forces consumers to get by on the money currently in their account after already paying for their expenses.
Having cash reserves in disaster
The easiest ways to find quick cash can also be the simplest. It may take some focus and determination, but consumers who manage to successfully elevate their cash reserves can be able to rest easy. They will know that should disaster in the form of a recession come, they have the financial resources to safely maneuver through difficulties.