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The Biggest Budgeting Mistakes People Make

October 28, 2020 | Louis Tully

 

 Woman crunching title loan money.

 

Following a budget, let alone an effective budget, may seem hard at first, and it certainly requires some will power, but it’s not impossible! If you are finding it nearly impossible to live within a budget, maybe you’re not doing it right. The following are some of the biggest budget-breaking mistakes to watch out for and here’s how you can secure financial relief while facing an emergency through car title loans.

Setting An Unrealistic Target

Your budget should be realistic, depending on your level of income. Even if you have accounted for all your basic necessities like rent, bills, fuel expense, monthly insurance fee, and groceries, etc., you have to keep some margin for unexpected expenses that can pop up anytime. Plus, it is unrealistic to expect that you won’t be dining out, shopping, or going for an outing even once during the whole month. If you suddenly cut off all your fun time and entertainment, you will feel suffocated and you might just call it quits very soon.

Set a realistic budget that allows you to spend a little on entertainment too once in a while, and gradually raise the savings bar as you start getting used to the change.

Trying to Keep Track of Everything In Your Head

Don’t rely on guesswork and estimates. It just never works. You need to sit down with a notebook, pen, and calculator, gather up your old bills and receipts, and start putting things on paper. First, figure out your after-tax income. Then make a list of all your expenses, big or small, and sum them to get an accurate figure for your total spending. Subtract this from your income to see how much (if any) money you are left with at the end of the month.

Separate your needs and wants and strike off unnecessary expenses to reduce your total spending. Your absolute essentials should be accommodated within 50% of your income. The rest can be divided 20-30 between wants and savings. If you write everything down, you are less likely to miss out on things. It will also be easier to keep track of your daily expenses after you’ve set a budget.

Not Being Able To Tell Wants From Needs

You might be counting a lot of things that are just luxuries as needs. You have to be a bit hardhearted while doing this. Expensive gifts, dining out, entertainment, and traveling- all these count as wants, not needs! Even your pricey gym membership, online entertainment subscriptions, and weekly visits to the salon are not essentials. Don’t splurge on luxury brand items either- there are always affordable alternatives that can work almost the same.

Avoiding these simple mistakes can help you stick to your budget plan much better. But, there can still be emergencies where out-of-budget expenses come up.

How To Tackle Out-Of-Budget Emergencies

First off, look at how much savings you have in your emergency fund. Figure out how much more liquid cash you absolutely need in a hurry. If your budget or savings account isn’t enough to handle the cost, you might want to consider title loans.

What Are Title Loans?

A car title loan is a short-term loan option that involves you offering the title to your vehicle up for collateral to secure up to $15,000 in Arizona. Because you’re offering your title up for collateral, title loans aren’t based on your credit score, and here’s why.

Title Loans Don’t Require Good Credit

Traditional loans are often of no help when you are already in a financial crisis because they look for a good credit score, a source of income, collateral, and even ask for cosigners sometimes. Auto title loans are different - they do not have credit checks or other requirements. In fact, we won’t even conduct a credit history search. All you need is ownership of a vehicle!

Title Loans Offer Same-Day Cash

One more advantage of title loans over traditional loans is that they do not require days or weeks of waiting. You can usually get a loan on the same day you apply for it!

Title Loans Are Easy To Apply For

The application process is much simpler than that for a traditional loan. They don’t require an extensive amount of paperwork to apply for. In fact, all you need to supply is your driver’s license, the title to your vehicle, a blank check to your bank account, and your car for an inspection. Applying for a title loan near me begins by filling out an online form and meeting with a representative. The sooner you can meet with your representative, the sooner you can receive your loan which will be deposited directly into your bank account.

 

Couple just used title loans. 

 

Title Loans Let You Keep Your Car

It’s a common misconception that you have to give up your car to secure your loan. You get to keep and operate it as you normally would.

Title loans are easy to apply for, quick, and they’re an easy option for handling an unprecedented emergency. Don’t let unprecedented emergencies ruin your budget. Maintain your control with online title loans.

 

 

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