As a general rule, emergency savings should have three to six months’ worth of living expenses. But what if you don’t have an emergency fund and find yourself in a bind?
Financial trouble is stressful, and for those of us with less-than-perfect credit and no money set aside, it can feel hopeless. If you need money in your pocket fast, there are some ways to get the emergency cash you need.
Sell Unwanted Items
Many of us keep things around our homes that we no longer want, use, or need. When you’re strapped for cash, getting rid of clutter can put extra money in your pocket.
If you have a lot of things to get rid of and live in a busy area or subdivision, you can have a garage sale. A garage sale is a great way to earn some cash on small items that you might not be able to sell anywhere else.
You can also turn to the internet and sell items on Craigslist, Facebook Marketplace, eBay, LetGo, or Poshmark.
Borrow From Friends or Family
If you have close family members willing to lend you money, it can be a risk-free option for emergency funds.
Be sure to discuss repayment. Discuss a time frame, potential interest, and how you will repay. This ensures everyone is on the same page and helps avoid future conflict.
Pick Up Some Freelance Work or Side Gigs
Any skill can turn into cash with freelance work or side gigs. Offer your talents to friends and family, market yourself on Facebook, or join freelance gig sites like Upwork or Fiverr to pick up short-term jobs.
Consider working for ride-share services or grocery/food delivery services. These jobs often have a quick hiring process and let you choose the hours you need to earn money on the side.
Apply for a Personal Loan
Personal loans are a type of credit provided for personal use. These options are risky because many lenders in the financial industry take advantage of those in need with high-interest rates.
Do your research to find a reputable lender, look for low-interest rates, and read the fine print to learn how much you’ll pay over time. Be wary of payday loans that provide a quick payout. These often come with skyrocketing interest rates.
Earn Funds From Your Homes
If you own a home, there are a few ways it can help you get some extra cash in an emergency. Talk to your mortgage lender about whether you’re eligible for cash-out refinancing options.
You may even qualify for a home equity line of credit through a private money lender. These lines of credit are secured by the equity you have in your home.
Learn Money Management to Build Emergency Cash Savings
The best way to prepare for financial emergencies is to educate yourself on cash management. Learn how to budget your expenses and set aside extra funds into a savings account to have money set aside when you need emergency cash.
Looking for more ways to prepare for your future? Check out some of our other articles on education, business, and careers.