6 Quick Solutions When You Are Short on Cash
Modern problems require modern solutions. We've all had a week or two when we are short on cash. It could be because something unexpected came up, or you may have missed work because of an emergency. Whatever reason, one thing is sure: you need cash, and you need it urgently. Sadly, when a financial crisis enters unexpectedly into everyday life, you might be caught completely unprepared.
If you find yourself in such a scenario, you're not alone. According to FEMA (Federal Emergency Management Agency), about six out of ten people in America experience at least one or two financial emergencies a year. And nearly one-third of American families have no savings at all. So, if you need some quick money to cover an emergency, where do you turn? Here are six ways to raise cash quickly without causing harm to your finances.
Many people aren't aware of the benefits that payday loans provide. They're explicitly tailored for emergencies, where you need to borrow cash quickly. While the interest rates on payday loans could be a bit higher, they make up for it due to the convenience it offers. You can easily get a quick payday loan in California without a credit check to deal with your financial emergency. The significant advantage of payday loans is that they take less time to process. A good payday loan institution can process your loan within minutes. This means you can get the money within a day.
Financial experts advise that you should have an emergency fund of at least $900 to cover unexpected emergencies. Others even recommend having enough money to cover between 4 to 8 months of living expenses in your emergency fund. If you don't have an emergency fund, now would be an excellent time to set up one. Some unexpected emergencies such as medical bills will arise, and you will have to spend your entire emergency fund. However, if you're using your emergency fund to pay for the regular expenses, you might need to reevaluate your spending.
If you don't have an emergency fund to turn to, try selling your services instead. This works best for someone who's out of work and has time on their hands. You may offer to babysit or pet-sit for friends. You can even consider starting a dog-walking service in your local neighborhood. According to ZipRecruiter, an online employment marketplace headquartered in Santa Monica, California, the average hourly wage for a babysitter is $28 an hour. Additionally, a dog walker can earn about $15 an hour. However, if you're not comfortable dealing with dogs or children, consider offering other services such as car washing or gardening.
As a way to get some quick cash, a pawnshop loan isn't that ideal. However, they're quick and can easily help you during a financial emergency. What's more, if you can't repay the cash, the pawnshop keeps the item you used as collateral. This is a better option than ruining your credit reputation and receiving constant calls from debt collectors. You can also sell to a pawn shop instead of borrowing a loan against an item. Musical gear, jewelry, and firearms fetch a reasonable price.
Sometimes, the best alternative to turn to when you need help is your family and friends. They might collectively or individually have the funds you need to cover your emergency. You also need to understand that borrowing cash from your family and friends can be a risky affair. How? Failing to repay in time and in full can bring conflict where it's not necessary. If you want to prevent this from happening, only borrow what you can afford to repay.
Additionally, don't overpromise. This means you need to come up with realistic repayment arrangements. Finally, get it in writing.
Ideally, being short on cash means your money management skills are wanting. This is particularly true if you're repeatedly running out of money each month. You can address this issue by working on tightening your budget. Consider cutting down your spending to save more. Start by tracking your spending on a day-to-day basis. Monitoring your spending helps you understand where you're using more than necessary.
The tips above will help you raise cash quickly without ruining your finances. Remember: the road to financial discipline starts with you. If you are repeatedly running out of money every month, it's vital to address your money spending issues. You may end up accumulating a considerable amount of debt that can be difficult to pay off.