Approximately 78 percent of workers in the United States report living paycheck to paycheck. Are you part of this group?
If you are, then you know how stressful it can be when a financial emergency arises. The good news is that there are ways to avoid the stressful scramble to scrape together funds.
Listed below are eight effective strategies that will help you get emergency money in a hurry. Next time you’re in a difficult financial situation, give one of these tips a try.
1. Sell Old Items
One of the first steps to take when you’re in need of some emergency cash is your own home.
Look around and see if there are items that you don’t need anymore that you’re able to sell. Take your old clothes to a consignment shop to sell them for some extra money. You can also sell old electronics or tools online.
At first, it might not seem like you have much to sell. Take an honest look at the inventory in your home, though. You might be surprised at what you have lying around that someone else is willing to pay good money for.
2. Pick Up a Side Hustle
If you have a couple of weeks to get together the money you need, consider picking up a side hustle.
These days, there are tons of jobs that you can do on your own time that allow you to earn extra cash. Some people even make full-time careers out of driving for Lyft and Uber or dog sitting for Rover and Wag.
These kinds of jobs provide you with a lot of flexibility, so you can do them when it best suits your schedule.
3. Trade Future Labor
Maybe you need money right away and don’t have time to pick up a side hustle. If this situation rings true to you, there’s another way to get the money you need.
Reach out to friends and family and offer to trade future labor for the money you need today. Maybe you can mow lawns or help with other chores in exchange for cash now, for example.
Some people will likely be wary of this proposal. If you have a history of being true to your word, though, and your friends and family feel they can trust you to make good on your promise, they might be willing to help you out.
4. Get a Cash Advance
Some credit cards allow you to take out a cash advance from an ATM. When you do this, you’re borrowing against the limit on your credit card.
Credit card cash advances are easy and convenient. However, they also come with a lot of fees and high-interest rates.
It’s easy to end up paying back way more than the amount you borrowed when you take this approach. As long as you have a plan for how you’re going to repay the money, though, it’s a viable option.
5. Cash in on Investments
You can also consider tapping into your investments during a time of financial stress. Cashing in bonds and stocks will give you access to the funds you need to cover your expenses and get back on your feet.
Just make sure you understand the rules associated with cashing in these investments. You may be subject to taxes or tax penalties, especially if you’re borrowing from a retirement account.
Talk to your stockbroker or financial advisor to see which stocks or bonds they recommend cashing in. This will help you get the greatest amount of money with the least amount of damage.
6. Apply for a Personal Loan
You may also want to consider applying for a personal loan. Personal loans can be used for just about any purpose, and they often have lower interest rates than credit cards or credit card cash advances.
Even if you have a low credit score, you may still be able to qualify for a personal loan.
According to Bonsai Finance, there are lots of personal loan options out there designed for individuals with poor credit. Be sure to compare rates and terms before applying for any of these loans, though, as some are definitely better than others.
7. Tap Into Your Home Equity
If you own your home, now might be a good time to tap into the equity you’ve accrued since purchasing it. Home equity loans and lines of credit allow you to borrow against your equity.
This type of loan often comes with lower interest rates than other types of loans and the interest is tax-deductible. You also get to enjoy longer-than-average loan terms if you decide to take advantage of this option.
Of course, the caveat is that you have to be a homeowner. You also have to have enough equity in your home to make the loan worth it.
It might not be an ideal approach for everyone, but it’s still one to consider.
8. Try a Payday Loan
You can also apply for a payday loan.
Because payday loans have such high-interest rates, they shouldn’t be your first option when you’re in need of extra cash. Sometimes, though, they’re the only option.
If you decide you want to apply for a payday loan, make sure to read the loan terms carefully before signing anything. You also ought to ensure you have a repayment plan in place.
The interest and fees associated with these loans can add up fast. If you don’t have a plan for how you’re going to pay them back, you could end up owing a lot more than you initially borrowed.
Get Your Emergency Money Today
When you find yourself in a tight financial position, it often feels as though there’s no way out.
As you can see, though, there are lots of steps you can take to get access to emergency money and get your finances under control.
Try one (or more) of these strategies today to get the money you need for yourself or your family.
If you need more information on money management and handling financial emergencies, be sure to check out the articles in the Financial section of our site today.
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Money When You Need It Most