3 Ways to Improve Your Budget in an Emergency
Money might not be the key to happiness, but it’s an important part of most people’s lives. If you don’t have enough cash, even the slightest issue can throw your entire existence off track. In an ideal world, everyone would have an emergency fund they can dip into when cash is low and the furnace breaks, or the HVAC needs a repair. However, the reality is not everyone is that lucky. If you’ve been struggling with your finances lately, or you simply don’t have enough cash at the end of each month to pay for a rainy-day fund, it can feel like you’re out of options when an emergency strikes. If you’re feeling down on your luck, and anxious about what to do next, here are a few ways you can top up your budget in an emergency.
Look at Your Existing Assets
Assets aren’t just a great thing to have in your life, they’re actually a form of cash, if you know how to use them correctly. Even if you don’t have any money in the bank, you can still use your assets as an extra form of funding in certain situations. Look at your life insurance policy for instance. You might be able to cash in and sell a term life insurance policy via a life settlement. You can always get a different policy later when your budget is in a different place. There are also things like furniture, jewelry, and even your car to think about. Although you probably don’t want to sell anything, this route can sometimes be a better option than having to pay the high interest rates of a short-term loan.
Consider a Credit Card
If you have a relatively good credit rating, and you know you can get a credit card with 0% interest for a short amount of time, this might be a good way to spread out your expenses. However, it’s important to remember you should only consider any form of lending if you know you can pay back what you’re borrowing. If you can’t pay off your bills at the end of each month, you’re just going to put yourself in a worse position long-term. On the other hand, if you’re trying to handle your budget more effectively, build up a credit score, and improve your access to money in the event of an emergency, looking a certain solutions like credit cards might be an option.
Ask for Help
In an emergency situation, sometimes the best thing you can do is ask for help. While your loved ones and the people around you might not be able to give you money, they can sometimes offer support and advice on what to do next. You never know whether someone in your family has also had a similar problem in the past, and can share their experience. Not everyone likes to talk about money worries. If someone does offer to help you out with money, make sure you sit down and think of a strategy for paying them back. This will help to avoid problems with your relationships in the long-term.