The past year has been hard on everyone. Whether you lost your job, have a reduced income or just a sudden cash need, it can be difficult. Hopefully you have an emergency fund in place, but considering the average household only has $590 left over each month, it is easy to quickly get behind. Today we are going to look at ways to get cash immediately if you need it.
Gigging for Dollars
I think one of the most interesting things about the 21st century is the gig economy. This allows anyone to become a temporary worker for a business and earn extra income quickly. This includes everything from Uber, Lyft, Instacart, TaskRabbit and even jobs on CraigsList. If you have a bill that is coming due shortly, this can be a great way to make some money. Although most of them do not pay a lot, they are mostly based on the task completed so you can make your own paycheck.
It is important to note that most of these gig apps pay on a weekly basis. This requires some forethought to getting cash in your pocket. Don’t wait until the last minute to get your hours in. It is also unlikely that you will be making thousands each week, but you certainly can make a few hundred dollars to cover any last minute bills that are coming up.
Borrowing from Your Investments
If you have a significant portfolio of investments, it may be smart to have margin enabled on your account. This allows you to borrow from your own investment portfolio without having to experience a tax event. Before you set up your margin account, it is important to check a couple things. The first is to make sure that your brokerage allows margin loans. The second is to understand the risks associated with utilizing margin. The risks could be their own post so I won’t be getting into them today. If you are looking for some information today, I would suggest this article from Fidelty regarding the benefits and risks of using margin.
The benefit of utilizing a margin loan is that you don’t have to sell the underlying security to withdraw cash. This gives you the benefit of skipping capital gains while still being able to pull cash. Especially for more significant costs this can be a great way to get cash immediately.
Collateralizing Your Hard Assets
Another option would be acquiring a loan on some of your hard assets. This can be anything from jewelry, precious metals, diamonds or watches. One of the best options out there is Chapes-JPL. They have been in the industry for over 40 years serving as an alternate to traditional lending and pawnbrokers. Chapes doesn’t require credit checks, tax returns, job verification or personal references. They offer loans as low as 2.5% APR
Let’s say you have a few Rolexs but you need some cash to hold you over for a few months. You don’t want to get rid of the watches because you are anticipating they will increase in value or they hold sentimental value. You could get an online Rolex loan through Chapes-JPL. It could be a great way to pull some cash from assets that you have.
Get Cash Immediately Through Traditional Lending
Lastly, there are always traditional lending avenues that you can go through. I would suggest revolving credit for this scenario if you need cash right away. This includes products like personal lines of credit, home equity lines of credit and credit cards. This gives you the ability to use them as needed and pay them back without having to go through the lending process again. If you get an installment loan then you will need to go through the lending process each time you have a disruption in your cash flow. It is also important to pay attention to the cost of borrowing money. Most credit cards have interest rates north of 20% which can be quite costly. Also if you need physical cash, they often have a cash advance fee which can make things even more expensive. Be careful that you aren’t taking from Peter just to pay Paul in the long term.
However, it may be advisable to refinance installment loans like mortgages and car loans to reduce expenses. If you are going to have a long term disruption in cash flow, reducing your expenses can go a long way. Currently mortgage rates are still at all time lows and it could be a great time to refinance!
Other Ways to Get Cash
These are just a few ways that you can get cash you need quickly. This is why it is important to have several cash flows in today’s day and age. You never know when something is going to change. If you have five different sources of income and one is changed, it can be a lot less detrimental. It is also important to have an emergency fund set up to cover your expenses if something was to happen.
Have you ever needed to get your hands on some money quickly? Were you able to get it done? How so? Let me know in the comments below!
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