Cash 1 Blog
How To Acquire Extra Cash for Unexpected Expenses
Sometimes, we encounter unexpected expenses out of our budget - even our savings can't help.
Financial experts advise that everyone must have at least three months' worth of emergency savings in times like these. However, not everyone can afford to set aside enough emergency funds, so they look for other sources of funds to compensate for their needs, such as:
Taking a cash advance is one of the quickest ways to acquire extra cash. There are three types of cash advances: credit card cash advance, cash advance loans, and employer cash advance.
A credit card cash advance is the most straightforward of all. You will never have to fill up an application form or wait for approval. You will use your credit card to acquire cash at ATMs. Use it like you use your debit card to withdraw money.
A cash advance loan is a short-term loan that follows the same process as traditional loans. You'll need to fill out an application form, fulfill the requirements and wait for the approval. There's also a cash advance for low credit scores, best for someone with poor credit but needs fast cash.
Meanwhile, the third option is the employer cash advance that you can acquire from your employer. It's like an advance paycheck you request from your employer when unexpected expenses arise.
A Personal Loan
If a short-term loan doesn't work for you, consider applying for a personal loan instead. Unlike cash advances, a personal loan is paid over a long period in installments.
You can also borrow more significant money with personal loans than cash advances.
However, you'll need to have a good credit score to qualify for a personal loan. Though there is an available option for a bad credit individual, they must provide either a co-borrower or collateral and the loan will become a secured personal loan.
When opting for a personal loan, you should take time to shop around first and choose the one that offers a reasonable interest rate plus a suitable loan term. By doing so, you can ensure that you will be able to pay off the amount plus the interest rate and other charges without any problem.
Borrowing Money From Family and Friends
Another option you can consider in the case of unexpected expenses is borrowing money from your family and friends. However, this option should only be your last resort as it can result in broken relationships.
Many friendships have ended, and family ties have broken because of lending issues. If you can't avoid this scenario, you should make a written agreement for the loan to make it official. It's also good to offer interest for the money you borrow to make it more of a business agreement than a personal one.
Look For Additional Sources of Income
Having an emergency fund is the best way to pay unexpected expenses. You should start saving enough for it by revamping your budget. Adjust it to have more money to put on your emergency funds so that you are ready whenever something unexpected happens.
If your current salary doesn't allow you to set aside a few bucks for emergencies, you should look for additional jobs to earn more. It will help you not only to save for unexpected events but also to upgrade your lifestyle.
Establishing a business is another viable source of additional income to help you achieve financial freedom. There are plenty of options that you can try - for example, if you have a garage or some vacant space in your house, rent it out. or maybe you can open a mini-game center for kids. This way, you will never have to resort to any loan to acquire extra cash during unforeseen events, which will alleviate the risk of falling into a debt trap.
Conduct a Garage Sale
If you have a lot of stuff like clothes or home decors and appliances that you do not use anymore, consider selling them in a garage sale. Many people love to purchase from garage sales as they can find the items they need at a very low price.
Start going through your attic or storage room and looking for valuable items you think other people need. Set up a garage sale and spread the word through social media, word of mouth, and flyers. Remember, another man's garbage is another man's treasure.
Selling items you do not need or use anymore will help you acquire money fast, but it will also help you tidy up your space. If you love arts and crafts, why not make it profitable by selling your final product in the garage sale. It will let you earn more while enjoying the process.
Always Be Prepared
Preparedness can be a huge factor in how you can solve financial problems, especially during unexpected events. Therefore, you should always be prepared. Use this article and plan your strategy on how you can acquire extra cash in case unforeseen expenses arise.
David Owens is a seasoned content writer specializing in finance - debt management, entrepreneurship, and business finance.
When not writing, he travels with his cat, Mellie.