Top Risky Backup Finances for Hard Times


Having your paycheck on time is probably the main concern when you remember all those bills that need to be paid. Most people rarely make a backup financial plan and very few put aside a stash of money that eventually could serve as an emergency fund. Of course, you might be saving some money from your salary, but probably your goal for this money is buying something or paying for your vacation but, have you thought of hard times and the risk to fall into risky backup finances?

Borrowing From Your Paycheck

Many people believe that it is not necessary to have idle money waiting for hard times because, in case of need, they can borrow from their own paycheck. This way, the money they will receive by payday will serve to cover the expenses of an emergency but will not pay for the regular bills as it should be. If you use the money this way with the hope to repay the outstanding bills by the next month, the risk is that some of those bills may come with penalty charges.

Getting a Small Loan

Perhaps applying for a personal loan could not be easy, particularly if your credit history is not good. However, small loans such as micro-credits and payday loans are easy to get because they are granted against your paycheck. Nonetheless, payday loans are probably the most risky backup finances that you may think off due to the high interest rates and finance fees associated with them

 Saving for Future Investments

Another risky move is saving money, not towards creating an emergency backup fund but with the hopes to invest and make money. While this could be a good backup finance plan, this involves the risk of doing wrong moves such as investing in the volatile market of stock funds without knowing at all what your are doing here, which involves the risk of losing your savings too.

Making a Quick Buck

Since nobody knows when financial hard times will come, one of the worst ideas you could think of is making quick money by gambling to cope with those unexpected expenses when the need knocks at your door. A lotto ticket, a bet in an online casino or any other game of chance that promises a fortune with a little investment is another of the top risky backup finances for hard times that you must better avoid.


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