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Jul 09

How to Find Money for Surprise Expenses

cashThe following post is a sponsored post:

Sometimes, we get hit with emergency expenses for child care, a car part needs to be replaced, we need to get a tooth pulled, or a relative asks for an emergency loan. For a variety of reasons, we can get nailed with an emergency expense at a bad time.

Here are a few tips from Allied Cash Advance to find money for life’s unexpected surprises:

  1. Reschedule payments. Often, creditors can be surprisingly accommodating when you take the initiative and contact them to reschedule payments. For example, say that an unexpected car repair costs $500 that you need to pay right now to stay mobile. However, you also have a credit card payment of $750 due in a week. With a phone call to your card company, you might be able to have your payment deferred until after your next paycheck. You can use your cash to make that car repair, and then take care of the credit card payment later. By making arrangements with your card company, you can avoid late fees and maintain a good relationship. This can be done with any regular expense. You’ll need to be careful with your cash flow, but if you keep track of your income and expenses, this is definitely an option.
  2. Downgrade services.  Do you really need that premium sports channel? By going through your monthly expenses, you might find something that you can do without, at least temporarily. Of course, things like medical, child care and various forms of insurance should be left alone, but entertainment, clothing and other peripheral expenses can be shaved.
  3. Get a gig. While many work-at-home jobs are indeed scams, working part-time temporarily can get you the quick cash you need.  At places like Fiverr, Craigslists and other sites, short term gigs can be found that can result in a quick turn around in cash for such things like writing assignments, Photoshop work or coding. However, be careful! These sites are largely unregulated, and you should only deal with top-rated sellers.
  4. Carefully use credit. We always advise that credit cards be used sparingly and carefully, but a credit card with a clear balance is just the thing to use to get over this kind of bump. But since many cards often have high interest rates, we advise that card balances be brought down to zero as soon as cash flow permits. Responsible use of credit can be a terrific tool in emergencies.
  5. Reduce daily expenses. Walk, brown bag-it, pass on happy-hour, drink water and give up Starbucks, and so on. There are a number of small expenses that you can cut during your daily routine, and this can add up.
  6. Set up a rainy day fund. The best way to solve a problem is to prepare for it. By setting aside a small amount of cash each week ($10, $20, $50), you can build up a reserve fund that can be tapped for sudden emergencies.

How do you find money for “surprise expenses?”

Image: bfishadow

13 comments

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  1. Kurt @ Money Counselor

    Yeah, if you’d like to pay the equivalent of a few hundred percent interest on borrowed money and shoot for doubling or tripling that ‘surprise expense,’ cash advance (i.e., payday) loans may be a good idea. Otherwise, stay away!

    1. KK

      Agreed, I wouldn’t take a cash advance unless I was in a really desperate place.

  2. Demaish @ Borrowed Cents

    The sad thing is we usually ignore these simple tips and then wonder where money is going.On my case I am very guilty when it comes to premium sports packages.

    1. KK

      Bad, bad, bad (just kidding) we all have our weaknesses right? 😉

  3. Michelle

    If we needed to, there are a decent amount of things that we could get rid of in order to save more money. Great post!

    1. KK

      Us too, we don’t live frivolously, but we definitely could cut back if we needed to.

  4. krantcents

    It is a combination of reducing expenses, emergency fund and cash flow.

    1. KK

      Good point about the cash flow, you can cut back as much as you want, but if you don’t have money coming in, you’re going to be in a bad financial spot.

  5. Canadian Budget Binder

    If we needed to find money we would have to start chopping up the budget. There are always ways to make or come up with extra money at least for us. We would also sell whatever we could as well. The most important for us though is making sure we have an emergency savings just so we can live without having to worry so much.

    1. KK

      Having an emergency fund is so important. I definitely sleep way better at night now, knowing that I have a cushion if things start to get bad.

  6. DC @ Young Adult Money

    I like the “get a gig” tip and setting up a rainy day fund. They can both help you get money in a bind as well as prepare BEFORE surprise expenses happen. Great tips!

    1. KK

      Very true. If you have a side gig, you’ll have some cash saved up just in case you have a surprise expense pop up. Then it’s not an emergency, just and inconvenience.

  7. mirloans

    I wholly agree that saving and cutting expenses are a good way to find money for life’s unexpected surprises. But sometimes it’s rather difficult to do because of our habbits – we like to eat tasty food, buy expensive clothes and so on, and saving is a stress for our mind.

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