You suddenly need a lump sum of cash, and you don’t have the savings available to cover it. Maybe you have to pay for some unexpected repairs or have you need to cover the costs of an essential purchase. It’s possible that you have assets other than cash, but you don’t currently have the money available. Fortunately, you do have a few different options that could help you if you need to come up with some money fairly quickly. You could turn assets and investments that you have into cash, or you can try looking for other ways to make or obtain money.
Cash in an Investment or Annuity
When you have assets, but they’re not in the form of cash, you can turn them into the money that you need. You might have a structured annuity settlement that pays you regularly, but you want to turn it into a single lump sum instead. This is also possible to do with various investments and annuities. Of course, there are downsides to doing this. You will often need to pay fees or taxes on the cash. Plus, you won’t have the investment or regular income any longer. However, it can be a smart way to get money when you need it quickly.
Sell Things You No Longer Need
One of the easiest ways to turn your assets into a sum of cash is to sell anything that you no longer want or need. Before you do this, it’s worth considering the time (and potentially a bit of money) that might need to go into it. If you think you’re going to be able to make a generous amount of money, putting effort into selling your things can be worth it. However, if you’re selling low-value items, it can sometimes feel like you might as well have not bothered once you look out how much (or how little) you have made. However, there are plenty of items worth selling, and even low-value items can make you more if you have many of them.
Look for Hidden and Forgotten Money
The idea that you might have forgotten about some money might seem strange, but there is a chance you own some money that you don’t know about. You could have old bank accounts with small sums left in them, or you might even have cash hidden at home. What about any times you might have loaned someone money, but you didn’t get it back? Now could be the time to give them a reminder and ask if they could pay it back.
Borrow What You Need
Borrowing money is the last resort for some people, but it can be the most effective way of getting cash when you need it. The most important thing is to make sure that you can pay it back. Avoiding short-term or payday loans is best, as they tend to be high-interest and can have large fees if you miss a payment too. Consider other borrowing methods, including a cash advance from your credit card, a bank loan, or even a loan from a family member or friend.
You have a number of choices if you need to find a lump sum of cash, whether it’s to pay for an emergency or cover unexpected vacation costs.