When you live life without tucking away any money for an emergency, any unexpected expense can turn your world upside down. Things happen and, in many cases, at the worst possible time. Planning ahead and setting aside funds is essential to maintaining a healthy financial future. Luckily, in the meantime, there are ways to come up with the funds you need, even if you have poor credit.
Taking Out a Loan
If your car breaks down, or you have sudden unplanned medical expenses, you need to have the funds quickly to pay for the repair or services. If you own a home and your mortgage is in good standing you can use your good credit with the bank to either take out a personal loan or a HELOC. However, if you have less than desirable credit, getting a personal loan through a local bank may not happen. The good news is that there are other lenders with alternative payday loans available. These short-term loans are easier to acquire and many of them offer low monthly installment plans.
Declutter and Make Cash
If you have resided in the same location for a few years, chances are pretty good that you also have many items tucked away in your garage, basement or attic that you no longer need. When an emergency presents itself many people overlook the value of what’s inside their home. Take a look through your belongings to see what you have that others may want to buy. Thankfully, if you don’t have the time to have a yard sale, there are many other resources at your disposal. You can list things on sites like Craigslist, Amazon, eBay or Etsy. This will help you acquire the funds you need and free up valuable space in your home, too.
Borrowing the Cash
Many people keep their financial hardships in secret. If, however, you have a family member that is able to loan you the money you need, you can avoid having to pay additional fees. It’s important, however, if you decide to ask someone you know for a loan to treat it in the same manner as you would if you borrowed it from a bank. So make sure that the terms of the repayment are agreeable to both parties. If borrowing from a family member or a friend is not an option, you can borrow from your 401K. While this is a retirement account and is best left alone, if you are fully vested you can borrow from yourself and then repay the loan with interest back to your retirement account.
Hire Yourself out for Services
People always need help. If you are in good health or excel at a trade you can put yourself to work. You can mow lawns, babysit for your neighbors, drive the elderly to appointments or even clean homes. You could also use your skills such as woodworking to sell things part-time.
Planning for the Future
Creating a savings account strictly for emergencies is important. It allows you to cover an unexpected expense with ease and makes it possible to enjoy your life to the fullest. Thankfully, getting started is simple. Each week when you receive your pay remove a small amount and place it in a separate account. Once you get into the habit of doing this, it becomes rather easy. Best of all, after only a short period of time, you’ll see the account start to grow. And, as you pay down your debt you can add more money to your weekly deposits and watch it grow even faster.
Life is full of unexpected surprises. Luckily, if you don’t have money set aside to cover those added or unexpected expense there are ways to acquire the funds without using the money you need to pay your bills.