It can always be useful to have some money available to fall back on in case you have an emergency. It can however, be difficult to know how much money to keep by. This is because it is hard to predict what sort of emergency we may need the money for. If we write off an uninsured vehicle that we need to replace, this will cost us a lot more money than getting a broken fridge repaired but it is something that we will still need to find the money for. However, our current situation as well as the availability of other options can be something to consider as well.

Can I get a loan?

It is worth starting with considering whether you would be able to borrow the money that you might need via an online lender like Cobra Payday Loans. Although a loan will cost money, it can be a convenient option for many of us. Although you might like to have some savings behind you as well, it could be reassuring to know that you have the option of borrowing if you need to. Of course, some people have limited borrowing ability because they do not have a good credit record. If this is something that you are concerned about then it could be worth checking your credit record and considering whether there is anything that you can do to improve it. This can start with making sure the information on it is correct as sometimes there is incorrect information which can affect your score. It is also worth finding out more about what determines a good credit score and whether there are things that you can do which will improve yours.

Even if you do have a poor credit record there are some loans available for you. This means that even if you have no savings or not enough, you will still have some options. All loans are expensive and may not be the ideal solution but knowing that there will be those options available can help to put your mind at risk.

Do I have expensive things I will need to pay for?

It is also worth thinking about whether you really need to be that well prepared. There will be determined by what sorts of things you will need to buy. For example, in the example of needing a new car, it could be that it might be better to pay a bit more insurance so that you can get a hire car if your car is out of use or perhaps you might be able to pay for a hire car, use a family members car, use public transport or get a lift with someone. It can be easy to panic about what you might need to replace, but we can actually manage with a lot less than we might think. It could really be the day to day things that are more important.

For example, if you have a cash flow problem, then it could be paying bills, rent and buying food that could be more of a concern. Having enough money to pay for these could be more important than worrying about replacing expensive items. So, it can be worth thinking about what your essentials cost and perhaps have enough savings to pay for these. If you feel that there is a risk that you may lose your job and therefore not have an income for a while then having enough money to cover these for a while could be worth it. It is good to think about how long you might be out of work and need the money for and this will allow you to feel more relaxed knowing that you will be able to manage in this circumstance.

How much can I afford to save?

Obviously, the amount that you can save will be limited by what you can afford. However, it can be a sensible idea to start savings a little each month, even if it is just a small amount. It is good to set up a transfer so that money leaves your account when you are paid and goes to a savings account. To work out how much you can afford you may need to do some calculations. It is worth looking at how much you normally have coming into your bank account and how much you normally pay out and you will be able to see what is left.

If you do not have much left or feel that you should be saving larger amounts then you might need to make other changes. It might be a good idea to think about what you might find easy to do. It could be that you can try to earn more but for many of us, working more hours may not be an option due to stress or family commitments. It can often be easier to reduce spending instead. Perhaps the easiest way might be to compare prices and try to switch to buying cheaper things. This will mean that we will not need to go without anything but can still save some money. However, you might want to take more drastic measures as well. You may want to cut back on spending on luxuries so that you have more money available to save. It might be that you will only need to do this for a while as once you have built up some savings you will not need to keep adding to the. However, if you do need to dip into them, you will need to find a way to replenish them again.

Lots of us really like to go on holiday and that means that we need to find the money to pay for it. This can be easy for some people as they might have a lot of money available to pay for things like this or they might decide to go on a really cheap holiday. However, many people do like to pay a fair bit for a holiday so that they have a really memorable and special experience and they will need to think about how to pay for it. There are different options that it is worth thinking about.

Borrow the money

Many people will think about getting a loan to pay for a holiday. It can be a convenient and quick way to get the money that you need. This is something that people might do by paying on a credit card or taking about a personal loan as well as perhaps other loans types as well. It has advantages in that you will be able to get the money as soon as you want it without waiting to save up. However, loans are not so easily available to those with a poor credit rating. Although there are options, they may not be able to borrow as much money as they need.

Loans also have charges and it is worth thinking about these. It is always wise to calculate how much you will be charged for the loan because then you can decide whether you think that it is worth it. You will also be wise to take a look at the expectations with regards to repayment of the loan. You need to work out whether those repayments will be manageable for you. If you pay for a holiday with a loan and then return stressing about repaying in and struggle until it is repaid then you will undo all the relaxing benefits of the holiday. Therefore, it is wise to be really sure that you will be able to repay the loan with ease before you take it out.

Save up for the holiday

If you save up for the holiday you will avoid the cost of a loan. Some people do find it difficult to save money but there are things that you can to make it easier. To start with, it can be a good idea to set up a regular payment into a savings account which you set up just to save for the holiday. It is a good idea to set up this account separately to any other savings accounts so that you know not to take money out of it. Also paying money into it frequently just after you get paid will mean that you will know that the money will be available for you. You will also not be tempted to spend it on other things if it is not available for you to spend.

It is important though, to make sure that you budget carefully so that you are confident that you will have the money available that you need. You will need to think about how much money you are likely to need and to save up for that. It can be hard to work out exactly how much you might need, but it is wise to try to calculate it. Think about what sort of holiday you were planning of having and then you will be able to research how much it might cost. Think about transport, accommodation, food and entertainment as well the costs of any luggage or extra clothing that you might need. It is always good to over estimate as there are often extra expenses that we do not remember to allow for.

Which Option is best?

Saving up money will be the cheaper option. Not only will you save the cost of a loan but you may even get some interest on the money that you save. If you think that it will be impossible for you to save that much then make sure that you consider saving some of it or even opting for a cheaper holiday. If you can at least save some money then you will save some loan costs and it will also mean that it will take you less time to repay the loan. If you choose a cheaper holiday then you may be able to still afford it without a loan.

It can be good to compare prices to see if it is worth switching hotels, airlines or things like this from your original choices so that you can save money. You may also want to consider a totally different type of holiday, perhaps choosing something more local rather than abroad or choosing a cheaper destination. It is good to have another look at all of the options as you could find that there are things that will be just as much fun but that will cost you a lot less money.