Not All Financial Advice Is Created Equal

“Stop getting your daily $5 latte.”

It’s a common piece of advice circulating the web. In theory, it’s a great tip, as saving money is all about reducing your expenses so more of your income can go towards a retirement plan or nest egg. Unfortunately, it presupposes you have enough money to be spending $5 a day at Starbucks. If there’s no latte to eliminate from your spending — or another equivalent frivolity — it’s pretty useless. This lazy financial counseling is reserved for people you aren’t struggling to make ends meet.

Taking a look at a cross-section of the country, when the average American has little to no savings and is incapable of paying for an unexpected bill of $500 or more, then you know this advice is impractical not just for you but most of the nation. Without significant savings, you can easily find yourself living paycheck to paycheck — which means the financial help you and most of America needs is much more substantial than simple austerity. Credible budgeting tips for people like you rely less on cut-backs and more on financial assistance.

Technically, roughly 60–70% of your income should be enough to cover recurring financial necessities. Things like monthly insurance and rent payments, groceries, gas money, and utilities should be covered by this portion of your income. The remaining 30–40% — set aside for short-term savings, retirement funds, and pocket money — should be enough to cover surprise repairs, renovations, or bills that crop up from time to time.

But when your income is too small or your cost of living too large, this 30–40% isn’t enough to pay for a new muffler, a medical prescription, or water heater repair. With little to no savings put aside to supplement your income’s failings, you need financial assistance from a lender like MoneyKey. As an online direct lender, they offer small, short term loans that are both quick and convenient to obtain. Ranging between $200 and $1,000, their financial products may be the exact thing that can help you cover unexpected, one-off expenses. To see if you could qualify for one of their small dollar loans, visit MoneyKey.com and learn what they require from their applicants.

A short term loan is usually repaid by the date of your next paycheck; however, there may be exceptions to this rule depending on where you live, as your state’s government has regulated the size and terms of small dollar loans. It’s important that you read up on the financial product available in your area to see if its repayment is something you can reasonably accommodate with your current income. If it isn’t, its due date will only just replace the due date of the bill or repair you’re attempting cover — except with higher interest rates and late penalties. If you’re at all unsure about how these products may affect your finances, speak with one of the professionals at MoneyKey to learn more about the conditions of their assistance.

When reducing your expenses isn’t feasible, adding to your income through short term loans may be the only way you can cover surprise, unavoidable expenses. Forget about worthless tips like cutting out non-existent lattes. This tip is made for people with a different financial profile than yours. For something more appropriate, investigate the financial products available in your state. It’s the kind of assistance made for your financial situation in mind.