Saving money is already tricky; what more if you need to pay an existing loan? Thus, the real question is, is it possible to borrow money and save simultaneously? Well, here is the guide to do just that.
1. Analyze your current financial situation
Be honest with yourself. This pandemic has been harsh to us physically, mentally, and financially. Many have lost their jobs and their businesses. Before making any rash decisions, ensure you have already accepted the financial state you are currently in. Check all of your accounts and keep a record of your remaining savings. Budget carefully and consider it a starting point to find another way to generate income to save money and repay your debt successfully.
And speaking of debt, could you ensure you only deal with trustworthy lending companies? There are lots of online lending companies today, and most of them have tempting offers. Before you incorporate yourself with them, double-check their background and the loan products they offer to avoid making your financial situation a lot more complicated.
Curious how Vidalia Lending works? Drop by on our loan page or download our mobile app to experience a stress-free loan application. Get lower interest rates with no prepayment penalty and no hidden charges.
2. Set a standard savings amount
Once you have settled the savings you want to keep, see that you will only spend that money if it is an emergency. To do this, set a specific amount of money you should save each month. Saving 5% to 10% of your income will help you create another batch of savings that you can use to repay your debt.
3. Consider changing your lifestyle
Our cost of living has always been expensive, but who would have thought it would drastically increase so much more in just five months that it put almost all of us down on our knees? This pandemic must serve as a wake-up call for all of us to consider improving our lifestyles. This doesn’t ensure that you’ll experience a sudden difference in the money available for your savings, but it will gradually reduce your monthly expenses.
In time, you will slowly notice the changes, and eventually, you will realize how much you had put away; it may be financially rewarding and life-changing, too. Buying unbranded clothes and food products, waiting for promos or sales events before shopping, and being cautious of water and electricity consumption are just three of the fewest sacrifices you can make to have a more simple and economical lifestyle.
4. Get yourself a financial diary
Well, some people love to keep their expenditures documented; still, if you are frequently using salary loans or personal loans to make ends meet, it is only advisable to get yourself a financial slash-spending diary of your own. A notebook listing your expenses will give you a good view of your spending habits. You will be clear about where you are spending your money, and you can organize your budget more efficiently.
5. Use emergency funds to pay your expensive loan
This is why you should ensure that you will only deal with a sincere lending company dedicated to helping people like you. Some lending companies offer unreasonable interest rates that leave you no choice but to use your remaining savings to pay your loan. Before getting involved, ask yourself a hundred times if you are sure about your decision. Getting a loan is a significant financial risk, and it can either make or break your financial standing.
Since 2008, Vidalia Lending has been helping thousands of Filipinos improve their financial standing by offering different loans with lower interest rates. Go to our loan page today or download the Vidalia mobile app to learn more!