Managing your finances is no easy task, especially when you’re responsible for others. You have to earn enough money to cover everyday expenses along with your loved ones’ specific needs. Then, you must make sound decisions about how this money is distributed. So, what happens when an unforeseen event arises that throws everything out of whack?
As emergencies occur all the time, knowing how to prepare and resolve the matter is essential to your financial well-being. Continue reading to learn more.
Emergency Fund
Have you been saving for emergencies? Financial experts recommend that everyone have at least three to six month’s worth of expenses in an account to use for unforeseen circumstances. That way when things come up, you can handle them without asking for assistance or going into debt.
Household Budget
At first glance, it may seem like you don’t have enough money to cover your emergency, but that may not be accurate. Sometimes, all you have to do is eliminate certain expenses and crunch a few numbers and you’ll have the cash you need. Review your budget and see what things you could eliminate to free up some money. Even if it’s not all you need, it could reduce the amount you have to acquire elsewhere.
Friends And Family
If you’re in a jam and can’t find the cash to cover it, your family and friends may be able to help. You can ask one, two, or even three people to loan you some cash to handle your problem and then pay them back at your earliest convenience. If you’re going to take this route, be careful. Just because they care about you doesn’t mean you should take advantage of your loved ones. Ensure that you repay them in a timely fashion to avoid conflict.
Short-Term Loans
If your financial emergency must be resolved right away, you may want to consider taking out a short-term loan. There are loan companies in Lubbock and other cities across the US that will give you a small lump sum of cash for emergencies. The funds are deposited into your account within a few business days and you can tackle your problem. Then, you can repay the loan in small installments until it’s paid in full. This option should only be considered if you have the money to repay the loan.
Trash Into Treasure
The money you need to handle a financial emergency could be sitting right in your house. Over the years, you’ve accumulated a ton of things. Some of those things, you don’t even use anymore. Why not turn your trash into treasure by selling it to someone? You can host a yard sale, find specialized buyers (jewelry buyers, junk car buyers, etc), or post them online for sale. Again, even if you don’t acquire all the money you need, it’s a dent in the amount you need.
Assistance Programs
Everyone falls on hard times in their lives. When they do, there are programs to offer assistance. For example, if you’ve lost your job, applying for unemployment could get you the monthly income you need to cover expenses until you find a new position. Similarly, if you can’t afford groceries, high utility bills, or health insurance, there are programs that offer monthly stipends, payment assistance, and free insurance to get you through the rought patch. All you have to do is ask.
Use Your Skills And Talents
Is there something you’re good at personally or professionally? Maybe you’re a general contractor that’s good with basic household maintenance or an accountant that specializes in taxes? If so, you could turn these skills and talents into a few extra bucks. Help a neighbor with a basic plumbing issue or review taxes for a friend and charge a fee. With a few clients, you could earn the money you need to handle your emergency.
Unfortunately, unexpected things happen. If you’re not prepared, they could ruin your finances and plunge you deep into debt. The good news is there are ways to resolve the matter quickly without getting thrown off track. Use the suggestions above to get you out of a financial jam so you can get back to focusing on what matters most – your family.
