How College Students Can Handle Financial Emergencies

handle financial emergenies

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  • With the pandemic, remote classes and unemployment currently rampant, it can be hard to feel financially secure.

    This is especially true if you are a college student who has to focus on saving for tuition and expenses.

    As a college student on a fixed income, a single emergency could wreak havoc on your finances if you aren’t careful.

    Luckily, with a little bit of planning and some hard work, you will be able to navigate your way through some of the most common financial emergencies that college students run into.

    Here are 4 ways college students can handle financial emergencies, regardless of their budgets and income.

    Build an Emergency Fund

    The first and most important way to handle an emergency is to be prepared in advance. Start saving now to build an emergency fund.

    Most experts agree that your emergency fund should be able to cover all of your expenses for at least six months.

    Unfortunately, that isn’t realistic for most college students, but that doesn’t mean you shouldn’t have any type of emergency fund.

    Even setting aside a few hundred dollars could help you quite a bit of you blow out a tire or one of your appliances begins to act up.

    Consider a Small Loan

    Taking out a small loan might be a good choice if your emergency fund is depleted and you need money quickly. One option that many people choose is a title loan, and that type of cash injection will keep you afloat until you get back on your feet.

    As long as you make your payments on time, those types of loans can be relatively inexpensive. If you have a steady job, then you could be eligible for a payday loan as well.

    Apply for a Credit Card

    Credit cards are essentially small pre-approved loans, and they can keep you afloat for a month or so without income. There are a few different reasons why you might want to have a small credit card in your name. In addition to helping you cover unexpected expenses, a credit card could also help you build your credit score.

    Before you apply for any type of credit card, you must make sure that you look over all of the fees and bonuses so that you know exactly what you are getting into. Remember that credit card fees and interest are extremely high, so be sure to pay off the minimum payment each month.

    other valuable tips:

    Start a Gig Job

    Picking up gig jobs is easier than ever, and many people are now making thousands of dollars a month as freelancers. One of the most popular options is becoming a delivery driver for restaurants or groceries. With one of those jobs, you will be able to make your own schedule and earn a little extra money on the side until you have rebuilt your emergency fund.

    These few tips are a great start, but you should also make sure that you have adequate insurance coverage. A robust insurance policy is going to be your first line of defense against a wide variety of financial problems that you might run into in the coming years.

    Image Credit: by envato.com

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