Different Methods Of Raising Money

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Published: 01st August 2012
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Financial crisis happens to the best of us, and even those who have carefully planned their budgets can experience lean times. It's a time when you find out who your true friends are, especially if you've suddenly gone from an affluent lifestyle to an extremely frugal one. Whether you're experiencing a temporary or long-term cash crunch, you'll need to get creative and start looking for different methods of raising money in an emergency.

Investigate Your Options
Does anyone owe you money? Does your job owe you for any out-of-pocket expenses? Have you made a purchase that offered a money back rebate? Research online resources to find out if the government entities or businesses owe you money. Sometimes people move without providing forwarding addresses and later discover their former utility company is holding money it owes them. If all else fails, ask family or friends for a short-term loan. It's not easy to ask, but sometimes you must let others help you in order to get through hard times. Look for ways to raise money

Go through your closet and set aside any clothing, shoes and accessories you seldom wear. It doesn't matter if you've got a special attachment to something. If you can't fit in it, or if you simply cannot wear it anymore, put it in the "to sell" pile. Do the same thing for household items, appliances and equipment you no longer use. Forget emotional attachments and think about how these items can pay your next month's utility bill or rent.

Later, go through that pile and do a little research, especially on items that you think might be collectable. Did you pay $250 for a new purse? Check online auctions like eBay to see how much they're selling for. Do you have vintage camera equipment, or even old stereo systems collecting dust in your garage? You might be surprised to see a resurgence of interest in things you might consider junk.

Consignment stores are another option, but sometimes it takes time to generate money from these sales because consignments average a 90-day period, and you have no control over how much the store is asking for them. Plus, they take a portion of the money raised.

Reduce Your Cash Outflow
It's time to really think hard about how badly you need that extra vehicle. Can your household get by with just one? Do you have car payments on two cars? Look at how much you owe on the vehicle you use the least, and research how much it is worth. If what you owe is less than what the car is worth, you can sell it, take the difference and buy a less-expensive car outright. You'll still have two vehicles, but you've cut your car payments in half. Consult your creditor to find out exactly what the terms of your loan are before you do this.

Next, decide which debts you should pay off immediately, and which can wait. Obviously, housing and utilities come first. Next is transportation. Does your locale offer public transportation? Can you get around by walking or riding a bike? By simply reducing the amount you drive around town, you've automatically put money back into your bank account.

Negotiate your credit card debt if you're having difficulty with the payments. They will usually work with you, and it's always best to reach out to creditors rather than ignore the bills you get every month. Pay the minimum amount due until you have enough money to pay them extra. Minimum payments are better than no payments.

Examine your hobbies. Do your friends consider you a Star Wars expert? Do you have an eye for antiques and vintage collectibles? Put that hobby or interest to work. Many people who have lost their jobs or needed extra cash have made money by scouring rummage sales and thrift shops in the search for hidden treasures. That $40 camera can turn into a $500 profit if you know how and where to market it. And since online selling is the new norm, overhead costs are low and the potential for raising money is limited only by how much you sell.

Raising money when you're in a tight financial situation can be challenging at first. However, if you get creative, cut some unnecessary costs, and look for unique ways to generate income, you can stop relying on those expensive payday loans or family for occasional handouts, and become financially independent once more.

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