Alternative Emergency Funding Sources

Everyone has times when they have a need for money quickly.  In my previous article, I wrote about the need for an emergency fund – a cushion of readily accessible money for you to fall back on in case of unexpected expenses.  Not too long ago, I needed money quickly for some of these unwanted and unexpected costs.  Fortunately, I had my emergency fund!  Having one of these prepared can prevent you from having to worry about financial arrangements at the most inopportune of times!

However, not everybody has an emergency fund, nor will everyone have one that is full when they need it.  In situations like this, it is quite possible that you will be forced to rely on other methods to procure cash – by which I mean money you can spend immediately, not actual dollar bills – quickly.

If this unfortunate situation arises, there are a variety of sources available to you.  Credit cards are often set up so that they can offer cash advances at ATMs.  Payday Loans are a source many people use for bills while awaiting their next paycheck.  Pawnshops are another option, assuming you have items of some value.  Obviously, if you are lucky and the amount you need is small, friends and family may be an available source – just don’t rely or depend on them heavily, and remember that they should be paid back just like you would any other lender (if not more quickly!).

Now remember – I only advocate using any of these in a TRUE emergency.  Wanting that new video game or pair of shoes is NOT a good reason to dip into an emergency source of cash!  If that is what you need, add them to your budget for the next month and start saving elsewhere.  These sources come with hefty fees, interest, and other costs (irritated friends being one!), so beware.  However, if you really do need the money in a pinch, they can save you a lot of grief.