Safeguard your savings – 4 alternatives to consider before dipping into your emergency fund

If you’re reading this article then you probably need to heed this reminder: You built up your emergency fund to help you only in the event of an emergency, so unless you’ve exhausted all other options, dipping into this account should not be your go-to solution. Instead, consider the below alternatives when you’re in need of short-term financial relief.  1. Look At All Your Lending Options Falling into debt is a serious concern when it comes to borrowing money, especially when you’re already facing financial difficulties. High-interest credit cards and payday loan schemes are considered predatory lenders, so skip these and anything else that sounds too good to be true. Your safest loan option is to borrow only what you need from someone you trust, like a partner, relative, or friend. If this isn’t possible, fast small loans from a reliable, not-for-profit lender may be worth considering. These lenders are known for their transparency and may even offer complimentary financial advice. 2. Using Returns, Rebates, and Refunds Don’t panic right away if you are unable to secure a loan (or a big enough loan for your needs). Take a moment to consider what point you’re at in the financial year or if you have any refund entitlements you can put to use. If you (or your partner) have recently submitted your tax returns, perhaps using your tax-back can be a better solution as opposed to spending your emergency fund, especially if you usually allocate this money to general spending or savings anyway.  If you have… Read More