One day, you may find yourself in a situation where you need to pay for something that you didn’t have the budget for. Whether it’s a medical emergency or a bill that you somehow overlooked and forgot to pay, these financial emergencies require an immediate solution. The good news is there is something you can do to solve this kind of problem quick. If you have a financial emergency, here are three smart ways to handle it:
Apply for an online personal loan.
An online personal loan is a fast and convenient way of getting cash. The application process is electronic. You just have to go to their website and fill out the application form with relevant personal, income and banking information. Within the same day, a representative will contact you to confirm your details, and then you can get your money within the next business day. However, online personal loans only allow you to borrow up to $800-$1500. Therefore, you can only use it as a short-term solution to a financial emergency.
Cut back on unnecessary expenses.
While you’re paying off your online personal loan, you need to think of long-term solutions to avoid putting yourself in another state of financial emergency. The first thing you can do is to cut back on unnecessary expenses. For example, if you have subscriptions to similar services (like Netflix and Hulu, Spotify and Tidal, etcetera), you can cancel one of your subscriptions so you can have a smaller monthly expense. If you’re used to always taking an Uber, maybe you can try riding a bike or taking the subway instead. Do you like eating out or ordering food? Buying your own groceries and cooking at home are less expensive. These small sacrifices may seem like they won’t help you that much, but if you add them up annually, you’ll find out that you’re actually saving a lot of money.
Think about other sources of income.
Another long-term solution is to think about other sources of income. For instance, if you have a hobby that you can potentially make money from, then you should definitely consider earning from it. Examples of hobbies that you can turn into profit include baking treats, making trinkets and accessories and selling them online, offering arts and music lessons, etcetera. If you have an extra room in your house or apartment, maybe you can turn it into an Airbnb. In addition, you can sell old clothes, shoes and other stuff that you haven’t used in the past year. It is also an option to pick up extra shifts at your work so you can earn more in a single work day.
The best solution to a financial emergency is still prevention. While online personal loans are a great way to get cash quick, changing your lifestyle and improving your money habits will help you become more financially stable in the future.