Do you, like many Americans, feel like you can never get ahead financially? Perhaps you've tried conventional routes like attempting to save more or tweaking the family budget each month. If your situation hasn't been improved using these basic strategies, this is a great time to jump-start your financial changes with a single $1,000 loan.
How can a one-time boost of $1,000 from a personal loan help you to get on top of your financial crises? Here are four great ways.
1. Start an Emergency Fund
Some people find it nearly impossible to follow the traditional wisdom to "pay themselves first" and build savings in a bank account. Why? There are simply too many demands on each paycheck - leaving it spent on other, obligatory items first.
So, reverse this plan and start with $1,000 placed in a savings account waiting for an emergency. Then, you have a series of equal payments to make in return for this money - payments which become a mandatory bill you pay with the rest.
2. Consolidate Debt
If carrying high-interest debt is your biggest challenge, use $1,000 to consolidate the worst of it into a single, stable monthly payment. Even if $1,000 doesn't solve your entire debt problem, you can still break up your debt-free resolution into manageable chunks that you can more easily handle.
Getting rid of debt is a long-term journey, and you can't do it in one fell swoop. Instead, learn to manage the task of paying off the first portion, then buy time to clear the next chunk.
3. Get a Month or Two Ahead
Most Americans live paycheck to paycheck - relying on the money earned in this month to pay for bills received in this month. With this ongoing cycle, planning for the future is incredibly hard because you're constantly meeting only today's needs.
Instead, start breaking free from this treadmill with only $1,000. Take that money and pay some of next month's bills before they're even due. Paying expenses like the utility bills and car payment one month in advance allows you to know that your house, warmth, and transportation are guaranteed for up to 60 days.
You can deploy $1,000 in a lot of ways to gain breathing - and saving - room. Use the money to switch from weekly or daily grocery shopping to more economical biweekly or monthly shopping trips. Or pay your insurance for 6 or 12 months in advance and remove an entire bill from each month's budget.
4. Start Self-Insuring
Do you carry unnecessary insurance because you don't have the money to cover smaller emergencies? Save that money and keep it in your pocket instead. Unnecessary insurance payments may include these:
- Low-value insurance policies that cover only burial expenses
- Warranties on appliances, tools, or electronics
- Higher premiums for low deductibles on car or health insurance
When you use your $1,000 this way, you save money in two long-term ways. First, you save on the money spent out-of-pocket for policies and payment fees. In addition, since you'll rarely need to tap this money for damage or loss in these areas, you still have your $1,000 growing in the bank.
Which of these strategies can help you overcome your particular budgeting challenges? Is it the ability to get ahead on bills, to plan for emergencies, or to start getting rid of debt? Any choice will change your life for the better.
At Service Finance Co. and Employee Finance Co, we specialize in helping families begin a new chapter in their lives with as little as $1,000. Call today to learn how we can help your finances.