Guest Post | Jan 2, 2023

Image: Unsplash/Alexander Mils

You are not alone if you find yourself cash-strapped in an emergency. Six out of 10 American households experience one or more financial troubles each year. FEMA reports that one-third of American families do not have any savings to last an emergency. If you are stuck in such a situation with no funds to get you by, here are seven ways you can quickly raise money:

1. Sell Your Assets

In emergencies selling your assets can be the best way to raise money. These assets include property, vehicles, watches, jewelry, and designer clothing. Antiques like vases, paintings, and furniture in your house, can unexpectedly be worth a lot. You can sell your assets on online platforms like thredUp or eBay for quick cash.

Selling home appliances like TVs, tablets, phones, laptops, and game consoles can raise emergency funds. Online marketplaces like  Decluttr, Gazelle, uSell, and Swappa are ideal places to sell home appliances and find that extra cash.

2. Get Money From Your Retirement Accounts

You can withdraw your retirement savings, such as your 401(k), early in case of an emergency. You only have to pay a 10% penalty for withdrawing from your 401(k) if you’re younger than 60. Even that is waived in case of a medical emergency.

You can also double your Roth IRA as an emergency savings account. Roth IRA allows you to withdraw your contributed sums at any time with negligible penalties. Check the rules of your employer and IRA provider regarding applicable taxes or penalties before withdrawing.

3. Organize a Garage Sale

You can always use your extra belongings lying around the house to earn some quick cash. Organizing a garage and yard sale can declutter your home and liquidate your belongings quickly to raise money. You can advertise your yard sale on Craigslist, Facebook groups, local print and online newspapers, and church bulletins. Consider putting effort into marketing your sale, such as by putting neon signs with black lettering around your neighborhood.

4. Pawn Your Items

If you have extra items in your house that you no longer require, consider selling them to a pawn shop for quick cash. A pawn shop will give you a fair value for your items, and will hold your item as collateral until you repay the money in a specific period. If you cannot pay them back, they can sell the item as they see fit.

Before selling to a pawn shop, polish up your negotiation skills, or bring along a friend who can bargain well. Pawn shops will try to pay you the minimum possible price for your item. By negotiating, you may increase the amount.

5. Get a Loan

If you have a history of paying back your loans late, it lowers your credit score. Bank loans require a good credit score and take time. However, you can still get a loan even with a bad credit score by applying for Urgent loans for bad credit. These include payday loans and collateral or secured loans.

Consider asking your place of employment for monetary aid. Many companies have policies for low-interest loans or advance salary payments for their employees. Contact your finance department for information on your company’s loan policies. Remember to repay this loan in time to avoid strains on your employability.

After securing a loan from an individual or company, draft a legal agreement and a cash memo. These measures help protect your interest. You should also set a repayment schedule to avoid miscommunication between both parties.

6. Pick Up Odd Jobs

You can offer professional services in your free time to earn extra cash. For example, you can establish local dog-walking, baby, and pet-sitting services. Statistics show that the hourly wage for babysitting is around $17, and for pet sitting, it is $14. Dog walkers can earn $15 per hour.

You can also offer to mow the lawn, wash cars, and help transport senior citizens to their routine checkups. If you can drive, sign up as a Lyft or Uber driver to earn extra cash. Rideshare drivers can make between $15 to $20 an hour. However, the exact rate will depend on where you live and your profile rating.

7. Donate Your Plasma

Donating plasma can help you raise money quickly. Its process is similar to blood donations. Instead, the organization to which you donate the blood separates the plasma from it through centrifugation, and the remaining components are delivered back into your body.

You can receive $15 to $40 from each plasma donation, and if you are in proper health, you can donate twice a week and recover quickly. Even in perfect health, you may experience short-term side effects from plasma donation, such as high temperature, body aches, fatigue, and dehydration. You may also feel dizzy, and it can sometimes escalate to fainting. To avoid suffering these consequences, take care of yourself after donating. Eat a proper meal, drink plenty of water, and get a good night’s rest.

8. Ask Family for Help

If you need money fast, consider asking your friends and family. Your parents only want what’s best for you and may provide you with funds without any strings. Other times they can give you little to no interest. However, asking someone for money in your circle can be uncomfortable, and being unable to repay them may cause tension in your relationship.

See:  TransUnion: US Credit-Card Loan Delinquencies to Rise in 2023

Only borrow money from family or friends if you can repay it. Unpaid loans can cause friction between the debtor and the creditor. To avoid problems, contract your repayment terms with the lender. This measure will set clear expectations and help prevent future conflict.

Endnote

Most Americans are financially unprepared for emergencies, such as natural disasters, accidents, or medical conditions. Taking credit-card debt may seem ideal in such situations, but it requires a good credit score which may only be possible after a while.

Instead, consider borrowing money from friends or family. If your credit score limits your options, get an emergency loan from an authorized financial institution. You can also sell your assets or earn money from doing extra jobs. Consider selling the extra items in your house in a garage sale or to a pawnshop. If you are in good health, you can make quick cash by donating plasma. You can quickly raise money and effectively overcome emergencies through these methods.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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