An emergency almost always happens when it is least expected. Job loss, environmental disaster, sickness, injury, and more can be scary events that take you totally by surprise. If you find yourself without any savings to spare and looking to get cash quickly, consider the following options to cover an emergency expense.
Find Something to Sell
One of the easiest ways to get cash quickly for an emergency is by liquidating what you already have. Find something in your home that you no longer use that you can earn money for. Precious metals like gold, silver, and copper often hold their value and sell quickly. Collector items, tools, apparel, and electronics can also sell quickly when the situation arises. Salehoo suggests selling your items to a pawn shop or online with free sites like Craigslist, Facebook Marketplace, and Ruby Lane.
Take Out a Loan
You may consider taking out a loan if you need money fast. There are various loans available, including payday and emergency loans that have a quick application process. You should be able to receive the funds the same day your loan is approved, though Power Finance Texas points out that installment loans usually have to be paid within a fixed amount of time. If you fear needing cash in the future, you may consider establishing a line of credit. With a line of credit, you make payments based on how much you’ve taken out in addition to accrued interest. Various loans are available to fit your unique situation, needs, and ability to pay money back.
The money you pay each month towards your 401(k) can be used in an emergency. Money from your 401(k) can be the quickest, simplest, and most cost-effective way of getting you the cash you need. Receiving a loan from your 401(k) is also not taxable unless rules are violated, according to Investopedia. If you are younger than 59, you will pay a 10% penalty for withdrawing, but at times this is worth the immediate cash. If you can manage it, choose to borrow rather than withdraw money from your 401(k). Additionally, if you pay back the loan on schedule, it should have little effect on your retirement savings progress.
You never know what to expect from life or when an emergency will occur. Unfortunately, most people do not have emergency savings to cover the unexpected. In an emergency, consider all the available options to help you get cash quickly.
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