The reason why some people make bad decisions is not due to a lack of intellect or available information. The real reason why this is the case is that they have a limited amount of time to process all their options. This is especially the case with people who need money fast. Given all their options, these people may choose the right one. However, desperate as they are, they usually leap at the first solution that they’re presented with. To avoid this unfortunate string of events, here are seven different options to choose from.
1. Borrow money from friends and family
The simplest thing to do when you need money fast is to go to your friends and family and ask for cash. Now, the biggest drawback of this method is that it’s so obvious that you’ve probably already given it a thought. Chances are that this was the first thing on your mind, before even looking up the answers online.
What makes this method so unreliable? Well, your friends and family may be in a tough spot themselves. Even if they’re not, you may be afraid that borrowing money from them will put a strain on your relationship. Some people let their pride get in the way and they fear that borrowing money will change the dynamic of their relationship with the lender. Either way, while it has numerous advantages, this method is not perfect.
2. Find an extra job
We’re not suggesting that you can, or should, find a part-time job just to breach your current financial insufficiency. However, in the gig economy finding a way to temporarily supplement your income shouldn’t be difficult. After all, there are numerous platforms, designed for this purpose. All you need is a one-time project that will give you a brief cash influx.
The best thing is that this can turn into a long-term solution, as well. Whenever you’re in such desperate need of money it can mean one of three things:
- You have no savings
- You’re not making enough
- You’re spending too much
Now, the first two items on this list are directly related to your income, which is why finding a method to fight the problem at its root may be such a great idea.
3. Sell your assets
The next thing you want to consider is selling something you own. Sure, it means parting with an item for a fraction of its true value but it also means staying afloat while remaining debt free. You see, a lot of people get in debt to avoid selling assets. However, they embark on a debt spiral, which escalates things far more quickly. In the end, they are forced to sell their assets to make up for their original debt.
By selling some of your assets directly, you’re doing successful and mature control damage. This is something that should never be downplayed or underestimated.
4. Pawn your assets
While using your assets is a logical solution, it’s far from being the optimal course of action. Fortunately, the truth is that you don’t even have to sell, especially if it’s the family heirloom that we’re talking about. Instead, you can find the right place to pawn your valuable jewelry at.
The best thing about this method lies in the fact that it’s not selling but an interaction closer to lending. In a way, pawning an item is like getting a small secured loan. Secured loans are those where you use your collateral as insurance.
5. Sell invoices
Some people have a particular financial problem where they have enough money incoming but can’t wait to collect it. In this particular scenario, you can find a factoring company and sell your invoice. This way, you get your money right away, in exchange for a fee (usually 1.5% to 5%). Still, you don’t get all of your money right away. Usually, you get something like 70% or 80% right away and the rest once the factoring company collects on your invoice.
The advantage of this method lies in the fact that you’re not borrowing money or selling assets. You’re just accessing the funds that are already yours without having to wait for months to collect. Sure, you lose a percentage but keep in mind that time is money and saving time also has its value.
6. Look for payday loans
Payday loans are exactly what they sound like – an amount of money that you can borrow and use to make it until payday. Now, these loans are fast and they don’t perform a credit check. However, there’s a downside. Seeing as how it’s the lender who takes a tremendous amount of risk, it’s important to mention that they expect to profit from this, as well. This is why the APR is incredibly high, between 300% and 400%. Now, this is not as bad as it sounds, seeing as how:
- You’ll repay the borrowed money shortly.
- The amount of money that you’re borrowing isn’t that high.
Nonetheless, it’s not the most efficient way to get that extra cash. Sure, if you don’t want to borrow from friends and family, this is the easy way out.
7. Rent out your tech
A lot of people don’t know this but if you have a great camera, a drone, or a VR device, it’s fairly easy to rent them out for a moderate sum. The same goes for video game consoles, musical instruments, etc. Sure, there’s always a risk that they’ll be damaged and that the damage will exceed the money that you’ve made. Still, with a good vetting process and some basic people skills, you might be able to estimate the renter.
In the end, a financial decision that you make now will come back to haunt you. It’s not just about taking money, it’s about being able to return it as painlessly as possible. Each of the above-listed items has a pro and a con, which is why you need to weigh them carefully and figure out which offers the best solution for your particular case.