What is a financial emergency? Well, it’s any urgent situation that involves cash (usually a big amount) that needs to be addressed in a timely manner or else there’d be serious repercussions. The most common financial emergency is one that’s health/medical related, like an accident or an operation that requires a huge sum of money that your insurance may not be able to fully cover. Other common financial emergencies are job loss, emergency home repairs (ranging from broken HVAC systems to full home repair after a storm or earthquake).
It’s for these instances that savings and a dedicated emergency fund are essential. Unfortunately, not everyone has an emergency fund, or enough savings for the particular emergency. And some may not even have enough credit to get a loan, or have no access to lenders. Luckily, there are ways for you to get money fast and legally without having to take a loan:
#1 Sell, Sell, Sell
If you find yourself in a serious financial emergency, take inventory of all your belongings and start selling anything that you don’t ‘need’. Appliances and jewelry are among the fastest that you can sell, you could even pawn them off at a nearby pawnshop, post them for sale online (or through online selling apps and websites), or have a good old garage sale. There are even websites, online platforms, and social media pages where you can easily sell clothing, books, and collectibles online.
But why stop there? If you need a huge amount of money in a short span, you can sell your car or your house. If you have any inherited property, there are even companies that specialize in the quick sale of an inherited house so you wouldn’t have to bother with all the paperwork, posting, and hiring an agent to sell it.
#2 Get an Extra Job
Got a car? Try your luck as a driver in a ridesharing app like Uber or Lyft. Got special skills in a certain trade or craft? Be a freelancer. Good with dogs? Be a dog walker. There are a lot of odd jobs and short employment opportunities for you to take advantage of in order to augment your current earning capacity and gather enough money for your financial emergency. Just make sure that you don’t sacrifice your health when doing so and have enough rest so you wouldn’t have to deal with another financial emergency (in the form of medical treatment) from you overworking yourself.
#3 Borrowing from Friends and Family
Technically, borrowing from friends or family isn’t a ‘loan’ in a way that there usually aren’t any contracts or paperwork involved. And, admittedly, it can be tricky or difficult to borrow money from people you’re close with, but if you’re in a pickle and you need money ASAP, borrowing can be the quickest option for you. Although, just don’t expect to get that much money from borrowing, and you’ll probably need to make a lot of phone calls. Just make sure that you pay them back as soon as possible, or at the agreed time to avoid straining your relationships.
It’s good to know that you have a lot of options when it comes to getting quick cash without having to go to a lender or your bank. But in order to avoid having to go through the trouble of frantically collecting as much money for your financial emergency, it’s best to start saving and building your dedicated emergency fund.