If you are looking for ways to reduce the need of a future loan or using credit then by saving in an emergency fund might be your best solution. The idea of the emergency fund is to provide you with money that you need to pay for an unexpected bill or expense without the need for taking out any credit.
The emergency fund
The emergency fund is a great way that will allow you to reduce the credit that you will need in the future allowing you to save money on interest payments. This reduction in the need for credit allows you to have more money for you each month.
The idea of not paying for credit is freeing, it means that you are not paying so much of the money that you work hard for to give it to a credit company. It is a good moment when you see the difference, learning the saving habit and watch the money grow.
It is not about saving vast amounts, it is about building the account slowly, it then allows you to see the amounts building up. Some people put a goal onto their emergency fund and worry they will never reach it because of small and unexpected bills. This is what it is there for, to use and to keep topping it back up each month. This is going to save you a lot of worry where you are going to get the money to pay bills that you haven’t budgeted for.
Having an account that you can turn to when a bill comes in, this can give you peace of mind. Having debt is stressful, it means that you constantly owe other companies money that sometimes it can seem impossible to find.
Having a fund that allows you to remove the constant need for credit is weight lifting. It can allow you to experience the freedom of having the money there to pay these bills.
There is one way to ensure that you are not going to forget to save is to make putting money away each week or month is to make it into a habit. You get paid, then immediately the first thing you pay is yourself. Once you get into the habit of paying money into your savings accounts each month and you start to see the balance rising it will make you feel proud.
For some saving money is a turning point when you realise that it is possible to save money and still enjoy life. Having items paid for on credit might be fun in the beginning but soon it can turn into a difficult situation where you no longer appreciate the cost of the items you are paying for, money has completely lost its value. If you get to this point you are in serious denial, the likelihood is that you might be heading in that direction in the future.
There is help available and it is important that you speak to a person who is going to help; there are charities that will offer help and support.