Unforeseen emergencies are hard to tackle and not being financially prepared can be devastating. Assuming that all your traditional financial resources have been depleted, here are a few moves you can make to accumulate funds to handle such a scenario.
Tips to Organize Garage Sales
1. Power in Numbers: Invite friends and relatives to participate in sale. This will only add variety and increase the chances of attracting the prospective buyers.
2. Advance Planning: Decide on the items to be put on sale. Organize clothing items (clothes books, toys, etc) according to their size in labeled boxes. Take enough care while pricing the items. Decide the venue and timing in advance.
3. Advertising: People will not come to know on their own about your garage sale. It is important to place an ad in the local paper. You can also put handmade signs around your neighborhood.
1. Try Peer to Peer Lending Networks
The help from strangers isn’t out of reach anymore with the emergence of peer to peer lending sites like Prosper.com, Virgin Money, Lending Club etc. By cutting the banks out of equation, these sites help you borrow loans less expensively.
In order to get the required credit, you just need to create a profile on the lending site and mention the amount of loan you need and why. Accordingly, the interested lenders extend loans under set terms and conditions, which you can accept or decline.
The only drawback of peer to peer lending is that there is no surety that your credit requirement will be met. After all, the lender loses everything if you default.
2. Encash Your Investments
Examine your portfolio. There might be some bonds and shares doing badly for a while now, and have no scope of generating return in future. Sell them off to get some cash.
You can also sell your certificate of deposits. No doubt, you will lose some interest if you encash them before maturity date, but you will have some money initially invested; and it sure beats taking a loan at high rate of interest.
3. Utilize Home Equity Line of Credit
Consider borrowing against equity in the house you own. The house serves as collateral against borrowings. If you are among those fortunate few whose bank is still dealing in equity line of credit, tap into this viable option.
4. Dip into Individual Retirement Account
You can withdraw your Roth IRA contributions at any time. If you have contributed $600 to the Roth IRA and your current account balance is $670, you can take out $600 without penalty. The earnings on your contribution, i.e. $70, if withdrawn, may carry certain penalty.
The only drawback of withdrawing money through this route is that the withdrawal amount cannot be deposited back into Roth IRA.
5. Sell Something
There are many things in the house that we no longer use. You can find these items in your garage, basement, stores, closets etc. Clean out the clutter and put up a garage sale.
Save the rare and expensive items and sell them online through EBay or Craigslist. This way you will be able to target larger prospective buyers and will be able to earn more than through tag sale.
6. Find a Part Time Job
You can get quick cash by teaching someone a skill. If you are a good sportsperson, dancer, cook, etc, give short lessons to those who are interested.
There is quick cash involved in odd jobs. Bar tending, lemonade selling, babysitting your neighbor’s kids on weekends, washing cars, mowing lawns etc are some of the alternatives.
These tips are tried-and-tested and quite likely to get you that quick cash you’ve been looking for.