Planning is a necessary part of making life work, whether it is business life or personal life. You simply have to have some type of plan for where you want to go and how you are going to get there. Of course, much of this planning involves financial planning.
But no matter how well you plan, things will happen – emergencies happen. They happen to honest people, they happen to good people. In fact, financial emergencies happen to everyone at one time or another.
When a financial emergency catches you short on funds consider the following options:
In This Post:
Stocks and bonds are great ways to save money for retirement. Your best plan is to start putting money into these types of investments and then just forget that they are there, letting them grow for years and years, until you cash in on your fortunate in your golden years.
But if you suddenly hit on hard times and you need some quick cash to buy a new car or fix a leaking roof these investments can be liquidated. Think about it – do you have some stocks or bonds that you bought and have just put on the back burner for some time? Maybe you have some legacy stocks that you inherited? If so, now might be a good time to sell them and get some money. One tip: figure out how much money you need and sell that many shares at once because you will probably pay a fee each time you initiate a new sale.
2. Sell out your structured settlements.
Speaking of inheritance, it is not uncommon for a loved one to pass and leave you receiving their structured settlement payments from some old lawsuit or settlement. Did you know that you can sell structured settlements to put cash in your hands now? If you have an annuity or structured settlement that you were awarded or inherited you can sell some or all of the payments. It is relatively quick and easy and might be just the solution to your financial emergency.
3. Trade out your unused stuff for some cash.
Another age-old way to get quick cash is to sell off some of your things, stuff that you are not using. And this doesn’t have to mean standing outside holding a yard sale and watching all the neighbors pick through your life. Today, online technologies make it easy to sell things on websites such as ebay or Craigslist, even directly through Amazon or a dozen other websites. And, believe it or not, people still place ads in the newspaper to sell things.
Look around your house. Maybe you have an old guitar that you never play, an autographed jersey from a now retired sports star, or a collection of rare action figures. Most people have something in their home, from jewelry to old designer jeans, that can earn them some extra cash when they need it. And, if your financial emergency is that you need money to pay income taxes, consider donating some items to charity – you will do something good and get a great right off to lower your tax bill at the same time.
4. Do some part time work.
Doing some part time work and earning extra money is also an option to consider. Look to your strengths and consider how you can make this work. Maybe it’s the holidays and you can pick up a shift or two at a local toy store. Or maybe you are very handy and can use word of mouth to make some cash doing odd jobs for people in the neighborhood.
Emergencies happen. The best defense, as they say, is a good offense. So ensure that you have medical insurance for your entire family so that mounting medical bills do not add to the burden of an accident or other tragedy. Also, be sure that you procure life insurance on anyone in the family whose income is counted on to make life work. One last tip, while most financial experts recommend term life insurance, whole life insurance can be a way to protect your family and also let you cash in by taking a loan against the value if some financial emergency arises.