A financial crisis can come out of nowhere, leaving you in a panic and scrambling for emergency funds, but the best thing you can do is to stay calm and carefully consider your options. The following is a brief look at some of the best ways to quickly pull together some emergency money in a crisis.
Dip into your savings
If a financial crisis comes up and you have some money aside in your savings, as much as it hurts, you may need to dip into your special stash to help you get through your current crisis. You can always top up your savings again in the future, but for now your priorities should be dealing with your current financial emergency.
Get a line of credit
If you have been with the same bank or credit union for a number of years and find yourself in need of emergency money, approach your financial institution about the possibility of getting a line of credit. The more likely you are to have more money coming in soon, the more chance you are of having a line of credit approved, and the longer you have had a relationship with the institution, the better your chances will be.
Borrow from friends or family
The best case scenario for getting emergency money in a hurry is if you have friends or family that can afford to give you a loan, because this can often mean you are able to get an interest-free cash loan that you can take your time paying back.
Sell some assets
One of the best reasons to accumulate assets when you are doing well for money is so that you can cash them in again should you ever need to, so if you find yourself in need of some emergency money, sell off an asset or two if you have any. While it may take quite some time to sell off some types of assets, having one or two up your sleeve to liquidate in an emergency can be a real lifesaver.
Get a loan
Sometimes it can take quite a lot of money to get out of a financial crisis, in which case your best bet is to approach your bank or other financial institution about options for getting a short-term loan. The key to getting any sort of loan approved is being able to show that you will be able to pay it back. Additionally, the more collateral you have, the better your chances will be.
Pick up extra work
Picking up an extra shift or two at work is a great way to get some extra money together in an emergency. However, if the crisis is dire enough, you may want to pick up another job altogether.
While a financial crisis can be an extremely stressful situation, the best thing you can do is to stay calm, because there is always something you can do, and the calmer you are, the more chance you are of finding a solution.