Have you ever wondered what you would do if a financial emergency came along? Perhaps you’ve already encountered this common life event and performed well or not so well. For some people, a single unexpected event like a surprise medical bill, temporary job loss, or a house fire can mean total meltdown. It doesn’t have to be that way.
What’s the solution? Preparation, planning, and strategizing. Step one is simply sitting down and going through a list of ways that you might be able to handle a monetary curve ball like a car breakdown, an unplanned visit to the dentist, or a job layoff. Sometimes, it’s best to learn from what other people have done in similar circumstances. Here are four ways to gain access to additional cash when you need it badly.
People used to have yard and garage sales, and they still do. But added to the mix is online selling, which is a fast, effective way to bring in needed cash. The trick to leveraging this technique for maximum effect is thoroughness. Make a master list of all your saleable items. Look through garages, attics, basements, storage cubes, extra bedrooms, and old boxes wherever they are. Anything that has monetary value should be photographed and listed for sale. Larger items can be sold locally, but smaller things are perfect for any of the global reseller sites. And don’t forget the one that sticks out the most in used cars that you can live without.
Take Out a Loan
If you have a job, the great news is that you can apply online for a payday loan and get funds sent to your bank account quickly. Whenever you face a financial emergency, payday loans are one of the most reliable sources of instant cash. Finding the best payday loans online is the first step. All you need is proof of employment and identity to get approved in a matter of minutes. For many working adults, payday loans are the first and only stop they need to deal with an emergency.
Dip into Retirement Accounts
If you have an IRA or 401k, check the specific contract details to see what the rules are for pulling money out. Some 401k’s are more lenient than others, especially ones tied to your employer. For IRA’s, there are rather strict rules in place based on IRS guidelines. If you can show a true financial hardship, it’s possible to apply for a waiver of the penalty for early withdrawal. In any case, it’s important to always be aware of what you have to pay to take money out of a retirement account and jeopardize your future nest egg. Penalties can be high if you don’t qualify for a hardship exemption.
Borrow from Friends and Relatives
Nobody wants to resort to asking friends or family for financial help, but many people do it every year. One way to lessen the pain and embarrassment is to use a written agreement that specifically states the payback terms, interest, and other details of the arrangement. That way, your loved ones and friends won’t feel as if they’re being taken advantage of.