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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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?”