According
to some sources, nearly 8 out of 10 businesses fail because of poor cash-flow
management. And it’s not just about businesses. Facing a financial crisis is
more common than the deadliest of the diseases.
To put
this into perspective, take note of this report from BBC- nearly one million
people lost their jobs in March 2020.
The millennials struggle with cash-flow management more than anyone else. And there are, of course, several factors at play for this struggle. For example, underemployment and expensive life choices are pushing people to spend more than they earn.
Regardless
of the reasons, there are some pretty easy and effective fixes to this problem.
If you also need
money now or asap, you
should go through this article. We’ve compiled some quick solutions for your
monthly cash crunches that can go a long way in resolving your financial
troubles.
However,
before we jump right onto the solutions there’s something that you must understand.
Evaluating Your Financial Situation
Of
course, before you decide to take out a loan or borrow money from your friends,
you must first know your situation. You need to know how deep you are into the
cash-crunch situation.
To begin
with, check whether you have a negative cash-flow in your bank account. It
simply means if your expenses are more than your income. If so, you need to
know how much you exceed your income.
With
this, you can devise how much money would be enough to get you out of the crisis.
For example, if you’re short by, let’s say, $2000 for this month, you can
predict how long it will take you to repay your advance or your loan. And
accordingly, you can also predict how long you’ll have to be managing your
cash-flow.
Once you
are able to conclude that you are in financial trouble, you might need to see
through the options.
Small Cash Advance Or Loan
The first
thing that might come to your mind is to seek a small cash loan. And to your
surprise, you’re not alone. Every person ever facing a cash crunch has small
loans as the very first option to cross their minds.
Small
loans are quite popular with the millennials and there are several reasons for
it. First of all, these loans are pretty easy to get. For example, you can
apply for a payday loan or an installment loan online. All you need to do is create your profile, login
to your account, and apply for your desired loan amount.
It’s as
easy as creating an email account. Just fill in the details and within moments
you’ll receive offers from many lenders. And that’s the best part- you get to
choose the lender that suits you the best. Plus, you can also expect to receive
a loan even if you have a bad credit score.
Side Gig For Zero Debt
Of
course, a loan in any form is a debt, and you will need to repay it. However,
if you’re not interested in carrying any debt you might want to consider other
options. The ones that do not indebt you for any time-bound repayments.
One of
the best solutions to cope with your cash crunch without owing any money to
anyone is working a part-time job. Yes, you read that right! You can turn your,
otherwise, free time into extra income to help you cover up your extra
expenses.
Working
on a side gig is, in fact, one of the most popular options that millions choose
over getting a loan. And it has more than zero-debt to offer. In the effort to
work on a side gig, you might actually create a self-sustainable small business
for yourself.
Accessing Credit Line
Cash
advances and side gigs are undoubtedly great solutions, but only when you need
money in small amounts. For a financial crisis when you might need more than
just a few hundred dollars, you might consider accessing your credit line.
Your
credit line is the score that a bank or a financing institute uses to check
your credibility. In short, it defines your capacity to borrow and repay a
loan. Usually, accessing your credit line requires some collateral to be placed
with the lender.
For
example, you can place your house as collateral to receive a few hundred
thousand dollars. Or you can also use your savings to prove your
creditworthiness. But keep in mind, that you should only access your credit
line if you need large sums of money.
Rent-Out Immovable Assets
Another
option that’s worth exploring is renting your immovable assets. Primarily, it
means you can rent out a house or a condominium that you own. You’ll receive
rent to sort out your financial crisis, and also someone to take care of your place.
If you do
not own a secondary property, you can separate out a portion of your home and
rent it out. Many people rent out a secondary dwelling unit in their homes to
make some extra cash for their monthly expenses.
Your
basement, or outhouse, or even your attic can be a good option when you’re
considering renting out a portion in your existing home.
Set Up A Garage Sale
If none
of this works for you, don’t worry, there’re still more options. One such is
setting up a garage sale. If you have some spare clothes or items that you no
longer use, then this might be a good option to get rid of them.
Setting
up a garage sale can make you that little cash you need to get through this
month. And besides, you can also clean up your place, by getting rid of the
unnecessary items.
Cut Out Your Expenses
One of
the most important considerations to be made regardless of the extent of your
cash crisis is cutting your expenses. You must carefully assess your expenses
and try to mitigate any expenses that can be avoided.
For
example, you might be able to survive a few months without buying any new
clothes. Likewise, you can also choose to travel by public transportation and
save on fuel costs.
Whichever
option you choose to cope up with your cash crunch, make sure you consider the
pros and cons. Only a well-informed decision can bring you the right results.
The post I Need Money Now- 6 Quick Fixes for Every Cash Crunch appeared first on ERP News.