Solutions When You Are Short on Cash

Nearly everyone has a month or two when they are short on cash. It could be because an unexpected tax bill came due, or you may have missed work due to an emergency. There are a number of reasons when you may worry about how you are going to cover everything that you need to pay during the month. If this is a consistent problem, meaning that happens as often as not, you will need to examine your budget and your income and make the necessary changes to prevent an income crisis from occurring all of the time. Here are some additional solutions you may turn to when you are short on cash.

Use Your Emergency Fund

short on cash
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Everyone should have an emergency fund of at least $1,000 to cover unexpected expenses. If you do not currently have one, then you need to start saving money for one each month. There are months when you may use up the entire emergency fund, and you will need to find additional solutions when you are short on cash. However, taking the time to establish one now will prevent you from being in this situation again in the future. You need to adjust your spending so that you can put money aside each month to cover these expenses.

Find Some Fast Cash

You can also work to raise some cash quickly to pay for your emergency.

  1. The easiest way to do this is to sell some items that you already own.
  2. Find a temporary job that you can take that will pay you in tips. This will allow you to earn money and get paid the same day.
  3. You may also take on additional part-time work at a temp agency that will pay daily or weekly to allow you to be paid more quickly.
  4. Sell plasma if you really need cash fast. 
  5. Babysit or tutor. These jobs usually pay the same day that you take them.

Work Out Payment Plans

If you have a medical bill or dental bill, you can often work out a payment plan for these bills. You may even be able to avoid interest charges. You will need to contact the hospital or doctor as soon as you receive the bill in order to work out the plan. You will be expected to make regular monthly payments, and the amount will depend on how large the bill is.

If you need to have your car repaired or you face another true emergency, you can finance it with a credit card. This should be a last resort, but should definitely come before taking out a payday loan or using a check-cashing store as an option. The credit card will allow you to break your payments into something manageable even though you will be paying interest on the loan.

Address the Underlying Problem

Generally, being short on cash means that you either are not planning well, or you are not sticking to your budget each month. This is especially true if you are consistently running into this problem. You can address this problem by working on tightening up your budget. You should cut your spending so that you are making less then you make. Consider switching to cash to cover all of your other expenses during the month so that you can more closely monitor your spending. If you have not been budgeting, you may realize that you simply do not make enough to cover the bills. If this is the case, you have a true income crisis and you need to find a long-term solution to help you mange your bills. This means you should create some career goals and think about returning to school to increase your earning power. It is important to address these concerns or you may end up running up a large amount of debt that can be difficult to pay off. Your budget is the most important tool you can use to get control of your money.