Financial emergencies occur when we are least prepared. The everyday grind can come to a crashing halt if your car suddenly breaks down, if the roof caves in under snow, or if you unexpectedly fall ill. Even if you have a steady job, finding cash to finance such emergency situations can be extremely difficult for the average income earner.
There are no easy or fully risk-free ways to secure cash for unforeseen expenses. However, there are several ways diligent wage earners can prepare for these situations in advance. Read below to learn how you can quickly secure funding for emergencies:
Save Money in an Emergency Fund
Don’t let a sudden ER bill or a repair expense catch you off guard. Learn to anticipate these events way ahead of the actual occurrence. The best way to prepare for a sudden expense is to have some cash saved in an emergency fund. You can immediately call up the bank to withdraw thousands of dollars if necessary when you need cash in a hurry.
It’s important to keep your emergency savings fun separate from regular savings funds. You may want to save money for holidays, a preplanned purchase, or even for retirement. Keep the emergency fund separate from all of these. Don’t withdraw money from your emergency fund for anything except for an actual, legitimate emergency. Otherwise, you could end up spending your rainy-day fund.
Take Out a Personal Loan
In case you have not saved any money for emergencies, you may need to resort to borrowing money. It may not be ideal, but taking out a personal loan can be a much better bargain on the long run than pawning a valuable or obtaining a secured loan.
It’s easy to get a personal loan online these days. But as with anything, the online personal loan sector is rife with misinformation. An unsuspecting borrower could easily get lured into obtaining a loan with sky-high interest rates. To avoid spurious lenders, use reputable borrowing websites like loanable.com. Read reviews, news coverage, and testimonials before borrowing money from short-term lenders. Doing your research and being vigilant will protect you from the worst loan sharks.
Work Overtime or Request an Advance from Your Employer
Any type of loan, even in financial emergencies, would add to your debt. It’s best if you find ways to secure the cash you need without resorting to borrowing either. It’s easier said than done, of course.
There’s one well-known method you can use to quickly obtain cash without borrowing—an advance at work. Some employers could be understanding and offer you the money you need from your next paycheck. If that fails, ask to work overtime to earn what you need in a hurry. Most employers would sympathize with your cause and accept either of the two options.
You don’t have to sell your TV or the sofa to find the cash you need. Rather, look in the attic and storage boxes for items of value. Choose things you don’t need right away and sell these off in a yard sale. These days you can sell your stuff online on a website like eBay.
Everyone occasionally find himself or herself in need to cash. When the money is not available right away, use any one of the above options to secure the funding you need. The best option, hands down, is to save money for the rainy days. If that fails, try any of the other suggestions as described.