Ways to Make Cash Cushion Even If You Are on a Budget

Are you on a budget and want to know how to make a cash cushion with your limited budget? Is cash cushion the same as an emergency fund? Find out the answers by reading this article.

Financial emergencies can take all your hard-earned money, and you might need funding to cover your expenses. Payday loan online lenders offers quick and easy funding for your financial crises. 

We have compiled ways to help you build a cash cushion for rainy days, even with a tight budget.

Both cash cushion and emergency funds are extra money set aside to help you during uncertain financial situations. However, they have their uses, and if you have a better budget, it is wise to have them both.

A cash cushion is a small balance maintained in your checking account to avoid overdrafts and insufficient fund penalties. It will help you eliminate the use of credit cards for unforeseen expenses. On the other hand, an emergency fund is a significant balance meant to sustain your expenses for months (ideally six months) in case of important events such as a medical emergency or job loss. 

To help you create a cash cushion for planned expenses and guide you toward financial stability, you can follow the following steps:

We are usually too acquainted with instant gratification from spending on our wants. However, building an emergency fund and cash cushion will save you from unforeseen financial situations. So before you spend your hard-earned money, set aside your savings first.