Saving money is already difficult, what more if you have an existing loan you need to pay? Thus, the real question is, is it possible to borrow money and save at the same time? 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 all of us, physically, mentally, and financially. Many have lost their jobs and their businesses. Before you make any rash decisions, make sure that 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 think of it as a starting point to find another way to generate income to save more money and repay your debt successfully.
And speaking of debt, make sure that 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 are offering to avoid getting 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 to it that you will never spend that money unless it is really 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 before but who would have thought that in just a span of five months, it will drastically increase so much more that it put almost all of us down on our knees? Well, this pandemic must serve as a wake-up call for all of us to consider changing our lifestyle for the better. This doesn’t ensure that you’ll get to experience a sudden difference in the amount of 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 and it may not only be financially rewarding but rather 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 most littlest sacrifices you can do to have a more simple and economic lifestyle.
4. Get yourself a financial diary
Well, there are already some people who love to keep their expenditures documented but if you are frequently using salary loans or personal loans to make ends meet, it is only advisable for you to get yourself a financial slash spending diary of your own. Having a notebook where you can list all of your expenses will give you a good view of your spending habit. You will not be confused 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 make sure that you will only deal with a sincere lending company that’s dedicated to helping people like you. Some lending companies offer unreasonable interest rates that leave you no choice in the end but to use your remaining savings just to pay your loan. Before getting yourself involved, ask yourself a hundred times if you are really sure about your decision. Getting a loan is a big financial risk and it can either make or break your financial standing.
Since 2008, Vidalia Lending has been helping thousands of Filipinos in improving their financial standing by offering different kinds of loans with lower interest rates. Go to our loan page today or download the Vidalia mobile app to learn more!