Consider These Tips for Getting Out of a Financial Jam
Money matters seem to come up when you least expect them. Unfortunately, they don’t always come up when you can afford them either. It doesn’t take much to throw you off budget and put your further into debt. An overdue or increased bill, car repair, a healthcare expense, unexpected travel expenses, or any unforeseen circumstance could leave you overwhelmed and overdrawn. Before you break the bank or stress out, there are solutions to get you out of a bind.
Some financial emergencies are instant and require immediate assistance. When you need to get your hands on cash within the next few days, these are the quickest solutions:
If you’ve been with your job long enough, your employer may be able to help you out of a jam. Some companies extend benefits like cash advances to employees who may need their pay upfront. If your financial emergency is simply something you can cover with your paycheck, this is the best and fastest option.
For those who have a retirement account, borrowing the funds is an option to consider. Although early withdraws will result in tax penalties, it can give you a large lump sum of cash quickly. You can then repay the funds over time so that it doesn’t hit your budget all at once. If you’re going to take this route, be sure that you find out in advance what the penalties will be.
Traditional loans provided by banks can be hard to qualify for. You’ll need to provide a ton of paperwork and also have a good or excellent credit score to be considered. Some traditional loans even require you have collateral to be approved. Short-term personal cash loans are payday loan alternatives that are offered by service providers like BlueTrustLoans.com. They don’t require collateral or great credit and can be deposited into your account within 24 hours.
It’s great to have a quick financial resource you can turn to when you’re in need of cash, however, if you want to get and stay out of a financial jam, you’re going to need to make some changes. These long-term solutions may take time to establish and adapt to but are ultimately the best methods for dealing with financial emergencies.
Build an Emergency Fund
Because you never know when a financial emergency could arise it’s a good idea to build an emergency fund. This is essentially a savings or checking account in which you set aside funds each pay cycle to cover emergency expenses. Start with a goal of $1,000 and then work your way up to several months’ worth of household income.
Pay Down Debt
If you’re unable to cover even small financial emergencies this could be a sign that you’re dealing with too much debt. By paying down existing debt you can cut down monthly costs and free up cash. Try a snowball effect with your debt. Pay off the smallest balances first and then work your way up to your largest debt until everything is paid in full.
Earn More Money
The best way to make sure you have money for a rainy-day is to earn as much as you can. While you may not be able to take on a full-time job or business, you can earn passive income that can be put away for those days you just don’t have it to spare. Get paid to write consumer reviews, start a blog, or read emails for cash and put the money aside.
You never know when life is going to throw you for a loop. The best thing you can do is be prepared. Whether you’re dealing with an immediate emergency that can’t wait or you just find that you never have the funds to cover anything these tips will help you get access to the cash you need.