By
Justin Heller
Life happens fast, and you never know when an emergency might require a quick cash solution. Money isn’t everything, but it can certainly get you out of a jam regarding healthcare services, car or house repairs, or loss of income in a shaky economy.
In the aftermath of the coronaviruspandemic, having a safety net to endure financial hardship due to unexpected events should be a priority among your financial goals.
Because so few Americans are in the financial situation to have a reliable emergency fund in a bank account, you might find yourself seeking quick cash in other ways.
There are multiple ways to acquire that money, each with its risks and benefits.
At Steady, our vision is to present all your options so that you make the smart moves with your income while you earn more. Use this guide to get the money you need while minimizing risks and thinking two steps ahead.
No situation is hopeless - there’s always an angle you can work to your advantage and fill your account with cash in the short term.
We’ve compiled a list of the best emergency savings money methods you can try right now, ranging in risk, speed, and cash amounts. Pay attention to each detail and determine which is right for you.
The first option won’t put money in your pocket instantly but will create some cash savings over the weeks and months. The best ways to save cash include
Reducing the amount of money you spend is the smartest, most sustainable way to set aside cash for an emergency, so always start here.
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Depending on how much you cut back, you can save hundreds - maybe even thousands - per month, allowing you to build your emergency funds rapidly.
If you’re like most Americans, there are probably several subscriptions and memberships you don’t use, so go through your bank statement and look for ways to save.
Bottom Line/Risks
Before making any major moves to acquire quick cash, start with your spending habits and see where you can improve.
Do you have stuff around the house that you can quickly sell for cash? Consignment and pawn shops can offer money for electronics and appliances, clothes, and jewelry.
You may also choose to sell off investment assets to secure emergency funding, tapping into your retirement funds if necessary. However, turning to the money market or your retirement savings accounts for quick cash is often unwise.
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Selling clothes and trinkets may only earn you a few extra monthly bucks, while more valuable equipment and rare items could bring in hundreds.
Make an effort to set up shop and scale your business, and you can run a legit operation that earns you thousands every month. By then, you’ll not need emergency cash.
Bottom Line/Risks
There are few risks to selling items and earning cash, provided you follow best practices and avoid scams. This is a great way to get some quick money in your pocket and do some spring cleaning.
The gig economy is in full swing, and you can partake in part-time jobs that pay rather quickly. Rideshare and delivery apps are the most popular and payout every week.
Other services connect you with clients for jobs like cleaning, repairs, and even freelance writing or IT skills. Some payments are immediate, while others take time to cash out.
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The average rideshare driver makes between $15 and $20 an hour, while delivery drivers can drive around the same. Bigger payouts come from more skilled labor tasks like repairs, cleaning, and moving furniture.
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The gig economy is somewhat saturated at this point, but there are plenty of ways to earn emergency cash in a pinch. Remember to factor in costs for gas and maintenance when working with your car, and understand the risks of working in people’s homes.
Just download Steady to see plenty of income-boosting opportunities open up before you. Create an account, navigate to the “Booster” tab at the bottom of the screen, and take advantage of the offers to get cash rewards directly added to your account.
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The average Income Booster is around $15, while some of the better offers can earn upwards of $65. Steady also often runs grants, giveaways, and other initiatives to funds members directly through various initiatives to help those in need.
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You might as well use Steady’s Income Boosters and start earning more cash now to get your emergency account started and connect with new income opportunities. Some Booster payouts may take longer to process than others, but it all goes straight into your pocket, to reward you for making better financial decisions!
Reaching out to people you know can be a low-risk way to secure emergency resources. There are no guarantees here, but it’s worth a try if you make a tactful request and set clear expectations from the start.
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Don’t expect to get months of expenses covered by friends and family in most cases unless you’re involved in some high-level social circles. A few hundred dollars here and there is a fairer expectation, and you may be expected to pay some interest in the long run; however, this money could make the difference for your well-being, so don’t be too shy to ask for help.
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Borrowing money from loved ones can be tricky, and you may want to avoid this altogether to avoid conflict. However, it's worth a go if you’re confident you can repay your loan.
Credit card companies typically have a low (or zero) APR introductory offer to entice new customers. Use these opportunities to your advantage, and you can have a line of credit that gets you out of a short-term financial jam.
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The average limit for a first credit card is under $1000, but experienced customers may have a larger amount to work with, ranging up to $20,000 or more.
This doesn’t mean you can spend all that at once since the expectations of credit terms and services still apply.
Bottom Line/Risks
If you know the rules with credit cards, you can safely navigate this method without much risk. However, remember to navigate carefully since you don’t want to ruin your credit score or reputation with reporting companies.
Many credit cards offer a cash advance service that immediately puts money in your pocket. A cash advance is best suited for emergency scenarios requiring cash and may not always be advised.
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Most credit card cash advances aren’t more than one thousand dollars, considering the average credit limit is under $10,000 in the United States.
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Expect to pay fees and deal with high-interest rates when taking out a cash advance. It should not be your first option unless under extreme circumstances.
Many personal loans are available through financial institutions like banks and credit unions. Amounts and terms can vary widely, and you need to research your options in full before committing to an agreement.
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Your amount will depend on your track record, your standing with the bank, and the interest rate. Loans can range from several hundred to several thousand. As always, be prepared to pay in full, plus interest, in the time allotted.
Bottom Line/Risks
Personal loans can be risky, but that risk can be mitigated by reviewing your options and working closely with the bank. Avoid unsecured loans, such as payday loans, with super high APRs.
Emergency cash isn’t hard to come by if you know where to look. The real question is how to secure this cash smartly that protects your long-term financial outlook and positions you for success in the years to come.
The takeaway is this: your priority should be building an emergency fund before a worst-case scenario strikes. Work with Steady and our partners to start earning more and get that fund moving in the right direction, so you’ll be two steps ahead in any situation.
Sources:
19 Ways to Find Fast Cash | NerdWallet
