A financial crisis is the sort of situation that causes sleepless nights, increased stress, and the feelings of helplessness. The good news is that there are steps you can take to prevent or at least reduce the long-term impact of sudden financial strains.
How To Get Through Tough Times Without Going Further Into Debt
• Rideshare, food and grocery delivery, dog walking, pet sitting, and courier services are great ways to fatten your wallet if you have access to a vehicle or bicycle.
• Freelancing is another easy way to take your current knowledge base and put it to work for your bottom line. Writing, proofreading, graphic design, and photography are just some of the methods you can consider to bring in extra income.
• Tighten up your spending habits, or create a budget and stick to it. Cut out any non-essential spending like entertainment subscriptions, takeout, junk food, or retail coffee trips.
• Make home-cooked meals instead of eating out. An average meal out can cost as much as 2-3 dinners made at home. Plus, the leftovers can be had for lunch the next day.
The Importance Of Building Savings And Setting Aside Emergency Funds
• While it can be difficult, one of the best ways to stay out of financial trouble is to build a simple savings portfolio. Simply putting $5-20 away every week into interest-bearing savings accounts or even making a lump sum investment via companies like Fundrise is all you need to get started. You may be surprised how quickly it can add up.
• Having an emergency cache of readily available money is vital to surviving a financial crisis, but it must be planned and worked into the budget as an essential component.
• Substituting frivolous spending for scrupulous saving is the easiest and relatively foolproof way to build a financial cushion.
How To Deal With An Emergency Without Breaking The Bank
When an emergency eventually crashes the party and there isn’t enough in the bank to cover costs, you may want to look around the house or garage for things that can be sold. Gently used designer clothes can be sold on open marketplaces and peer to peer selling apps. Some electronics and cell phones can be sold back to companies who will refurbish or recycle them.
• Poshmark – peer to peer website where you can buy and sell designer clothes and accessories that are taking up space.
• BuyBackBoss – currently a top choice for selling used cell phones and other electronics, plus they give you the choice to pay via check or PayPal.
• Gently used furniture can be refurbished, upcycled, or sold as-is on platforms like Facebook Marketplace, where you can snap a few pics, list directly from your phone, and with a little luck have cash in your pocket in a relatively short period.
When To Consider Short-Term Loans
If you find yourself in a true financial crisis and have exhausted all other resources to stay afloat, you may want to consider obtaining a short-term loan.
• Personal loans given on a short-term basis should be paid off as quickly as possible.
• These types of loans are intended to be utilized during times of unexpected financial crisis, and only when savings and other avenues have been exhausted.
• Short-term loans can be appealing for their potential to deliver funds in as little as one business days after approval.
• If you need an online loan now there are a variety of lenders to choose from. With a bit of research, you can find a lender that works best for your particular circumstances.
The best way to prepare for the unexpected is by saving, budgeting, and smart spending before a crisis strikes. Before you find yourself facing a financial crisis remember that preparation can be easy if you follow these everyday guidelines.