Even with some advanced financial planning, it’s relatively easy to find yourself in a scenario where you’re short on cash. For instance, you could have an emergency that depletes your emergency fund or lack an emergency fund, to begin with. You could also sustain asset damage (without suitable insurance), encounter a medical bill or be forced to pay a fine. Either way, being short on cash is more than an inconvenience, due to the fact that it may put your very existence to question. Fortunately, here are five solutions to get a grip on things if this happens.
Find a side job
The most elegant solution to your problem is to find a side job. Why? Well, because instead of a one-time solution, it provides you with a steady surplus of cash, which will put you in a scenario where it’s somewhat harder for you to run out of cash. Just remember that you have a limited amount of free time and that sacrificing your day-job for this is usually not worth it. As for the job itself, in today’s day and age, it’s relatively easy to find freelance employment online.
Apply for a loan
Applying for a loan is a logical solution in this scenario, nonetheless, it has one downside that a lot of people fear. First of all, applying for a loan is often seen as a slow method that requires a ton of paperwork. However, this depends on the A) the amount of money you need and B) the lender that you’re applying to. For instance, online payday loans can get you up to $1,000 right away in your account and it’s not concerned with your credit score. In fact, you can get the money the very same day.
Sell things online
Another major boost to your cash flow is to sell things online. This is a great method, seeing as how it gives you an immediate cash boost. Also, you can either choose to sell things that you no longer use/things you don’t need or even sell things that you make. This way, you would turn it into a business of sorts and create a solution that’s similar to what we’ve discussed in the first section. The best thing is the fact that, since you’re selling items you don’t personally use/need, it will feel like you’re making money out of thin air.
Borrow money from friends and family
Borrowing money from friends and family is a go-to cash flow boosting method for a lot of people. Unfortunately, it has some downsides, as well. First of all, these loans are seldom seen as a priority, which makes a lot of people ignore or skip paying them back for the time being. Second, a friend or a family member may currently have some financial issues of their own. Finally, if you fail to repay them, you may endanger your relationship.
Practice some austerity
At the end of the day, it’s not about how much money you make but about how much money you spend on a regular basis. It’s not treating yourself from time to time that’s the problem. It’s trying to lead a lifestyle that surpasses your income that makes all the trouble. So, try to find the right measure and you’ll soon see how the majority of your cash-related problems will melt away. One of the ways to do so is to reach out to a financial advisor, even though this means paying an additional fee.
Having an emergency fund to dip into is the best-case scenario. The problem lies in the fact that this won’t always be the case. So, when you find yourself in a rough spot, you solve it with one of the above-listed five methods and then you start making this fund. The rule of the thumb is that this fund needs to contain at least three months’ worth of your expenses in order to be reliable.