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Play for time!

Time is probably the most difficult commodity money can buy. and yet…

According to the financial ‘gurus’ recommendations, Emergency Fund (EF) equal to the annual family income can be created within a period of 10 years by putting aside 10% of the total income.

Without going into much detail, it is obvious that 10 years is a long time and things tend to change during such an extended time frame. This doesn’t exclude income. There might be times when your income decreases dramatically, and that’s when you rely on your EF the most. When you have to dip into your EF to cover unexpected costs, it is clear that you will require more time than you initially planned to create your EF. So, as you can see, using this recommendation is not only time-consuming, but is also unlikely to bring tangible results. This explains why there are no business financing programs with the time frame exceeding 24 months. Instability of the market doesn’t allow long-term planning. The same is true for the family budget.

So, what is the way out? How to create a full-scale EF within a couple of years? The answer is simple, and its name is LOAN. To get a personal loan exceeding $ 20K is next to impossible. Small loans ($ 10K-20K) will not resolve the problem. Besides, paying back a big loan means additional payment from your budget which is highly undesirable. Banks do not offer personal credit lines with deferred payments until the loan starts to be utilized.

There is only one way out of this seemingly dead end situation – use credit cards to create your EF. Minimal EF for a family of 3 people is $ 100K. If the credit line offered to you by the credit card company is $ 3K-5K, and you limit new cards to 8 per year (if you exceed this number, your credit score will go down and new cards will not be offered to you anymore), creating a desired EF will take more than 8 years. This is not what you are looking for. However, if you open new cards with the credit line of $ 10K-15K, it will only take a year for you to create a $ 100K EF. The only problem is to make sure that you can always have access to the new cards with a credit line of $ 10K or more.

To guarantee this, your credit score should be 740 or higher, and the average credit line available to you should exceed $ 10K. Not all of us can open a new card with such a high credit line. However, the situation is fully in your control. Everyone can achieve desired results within 6-8 months, and then create EF within 10-12 months.

As you can see, using the potential of credit cards can resolve the issue of creating EF and stabilizing your family budget. It can be achieved in a relatively short time and will save you 10% of the family budget that you could use for your current expenses without jeopardizing your family’s financial stability.

joseph RozenbergPlease call me for more information: 847-520-7030.
email: mockbajr@gmail.com
site: www.drfgroup.net