Emergency Cash - Continued
In the middle of an actual or pending cash crisis the last thing you want to do is to make the wrong decision from a panicked or pressured position. Beware of failing for scams, get rich quick schemes and many of today's online traps.
The most common form that any of these "scams" take is to promise you the cash you need for a finder's fee up front. It may be hundreds of dollars or as small as $9.95. But, they brings you nothing in return except to remind you, If It Seems Too Good To Be True, It Probably Is! Some general schemes you find listed on search engines.
List of ideas to make money
Cash Offers that sound like religious backed groups
Secret Lists of Jobs you pay for up front
List of Inheritances (that you pay for up front)
Fee based Overnight Credit Clean Up
There is a section about this on the FTC (Federal Trade Commission) web site. Look at the E-Commerce - Internet Section.
What Works
When it comes to funding a cash emergency there really are only two real choices of funding. From your own savings and credit reserves and just plain borrowing the money.
In some cases you can see a cash crisis or emergency coming. One strategy is to quickly reduce cash flow to a bare minimum and saving as much as possible during the time available. Also depending on the nature of the problem changing something that is causing the crisis may avert it.
Increasing income can help if you have enough time to bring in the amount you need. In some cases a second job can actually lead to a true decrease in available dollars. Travel, eating out, childcare, clothing and other expenses can reduce the real dollars and cents of that extra job and hours.... While working from home reduces many of these extra expenses - finding that "real" opportunity to earn a fair dollar from online work can be a real challenge.
Building Your Cash Reserve
When you have an emergency, how much cash could you raise? Your chances of succeeding in the future are much greater if you have a significant cash reserve.
Uses For Your Emergency Cash Reserve:
Emergencies aren’t a crisis if you have a cash reserve
You can tell the boss to “Take This Job and Shove It” when you have enough savings to live on for six months
You get into activities you enjoy
You can try business ideas without extra worry
You have the option of moving to a new location
Negotiate better prices if you don’t need a loan
You can help family and friends with their emergencies
You feel more secure and have far less stress
For most people, saving money is very difficult. Your immediate need is more stressful than your future need. You do not have enough to cover current bills. You like to enjoy your money now. Even if you manage to save some money, you end up spending it. You have an emergency. You find something you really want to buy. You promise yourself you'll pay it back, but you never do. Saving money takes more self-discipline than most people have. It is very difficult to put money aside each month into savings.
Learn To Pay Yourself First!
A basic workable plan is to put "Your Bill" into the list of monthly payments. Pay Yourself First! Disguise your savings plan as a required monthly payment. Arrange with your bank for a monthly debit from checking account into a savings account.
Some credit card companies allow you to make monthly payments into an investment account, such as savings accounts with banks or investment programs. The amount you authorize is automatically charged to your credit card each month. Make sure the program is not a tax deferred plan and is liquid in nature.
Many companies feature a payroll savings plan. Tell your employer how much to deduct in each pay period. The savings amount is withheld like any other deduction.
Try one or more of these methods to build your savings plan around a planned deduction or payment. Making this simple monthly payment allows you to build your cash reserve and future prosperity.
