When an unexpected expense arises, many people find themselves in a bind. In fact, a recent survey found that 51% of respondents said they would have to sell something they owned or borrow money to cover an emergency expense of $250.
The solution is to build an emergency fund. Even $200 in the bank can get you out of trouble. This amount could get you by without pawning your valuables or relying on the generosity of a friend or relative.
It takes time, discipline and extra money to build this financial mattress. In the meantime, here are strategies for making fast money today, increasing your income on an ongoing basis, and reducing your monthly expenses.
Get extra cash now
Sell your old cell phones
A recent online survey found that half of those surveyed had at least one old cell phone in their home that they didn’t use. You can sell your old phone on many sites like leboincoin, ebay etc. Also consider selling your old MP3 players, consoles and tablets.
Rent a room
Sites like Airbnb aren’t just for people who have vacation homes for rent when they’re not using them. Many people, especially students, are only looking for a room to rent out. If you have an empty or unused room in your home, this is the opportunity to have an easy way to earn extra money each month.
keep pets
The number of private pet sitting websites continues to emerge. If you like animals, keeping a dog or a cat can bring you between 10 and 20€ on average per day. A simple solution to earn money quickly. We still want to remember that an animal is not an object and it will still require a certain investment on your part.
Reduce your insurance premiums
One of the secrets of the car insurance industry is that premiums for the same driver and for the same coverage can vary by several hundred dollars from one insurance company to another. Each insurer makes its own calculations; that is why it is recommended to compare car insurance offers.
The same goes for home insurance. Switching insurance can save you 10% to 20%, just as you can get premium reductions by installing a home security system.
Pawnbrokers
As a means of borrowing money, pawnbrokers are not the best. But they’re fast, and if you can’t repay the loan, the pawnbroker just keeps the item you used as collateral. It’s much better than consumer credit. You can often sell directly to a pawnbroker as well. Jewelry, watches, musical instruments, the latest electronic devices are the most popular items.
Ask for loans and help from the community
Local community organizations may offer loans or short-term assistance to help pay rent, bills or other emergencies. Nonprofits in your area may also offer small loans.
Postpone certain invoice payments
Some creditors like utilities don’t charge interest on late payments, so find out if they accept late payments. Use the money you save by not paying those bills to cover urgent needs.
Ask for a salary advance
Ask your employer for a cash advance from your salary, which usually does not cost you a fee and which you repay through payroll deductions. Some companies also offer low-cost loans to workers in crisis.
Look at your life insurance policy
If you have a life insurance policy that has a cash value, sometimes called permanent life insurance, you can borrow against that policy and have the rest of your life to pay it off. If you don’t repay, the insurance company subtracts the money from the insurance payment when you die. See if your contract allows it.
Cash advance by credit card
If you have a credit card and the account is in good standing, a cash advance is a much cheaper option than a payday loan. You will pay a fee, usually around 5% of the amount you borrow, plus interest, which can be around 30%.
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