We’ve all had those times in life when money has been short or we’ve gotten ourselves into a pickle with debt, so we all know how scary and frustrating it can be, but you know what? It doesn’t have to be that way!
If you want to find a better way through your money woes, here are a few things that will help:
1. Don’t Panic—Assess the Situation
Probably, the worst thing you can do when you are facing a financial emergency is to panic because as you will probably know, panicking never helps anyone! It’s so easy to do though when you’re feeling anxious about your money situation, isn’t it? One thing that can help is to sit down and calmly assess the situation because when you do that, you will see that it is almost never as bad as you thought, and even if it is that bad, getting to the bottom of the exact nature of the emergency will help you to plan your way out of it, thus releasing some of that panic fast.
2. Prioritize Your Expenses
In a money emergency, not all expenses are created equal. It’s time to go full Marie Kondo on your finances and figure out what truly “sparks joy” (or, more realistically, what’s absolutely essential). Start by covering your basic needs: food, shelter, utilities, and transportation. Then, look at any other bills or debts you need to pay. If there are any expenses you can cut back on temporarily—like that gym membership you haven’t used in months or your subscription to every streaming service known to man—now’s the time to do it.
3. Tap Into Your Emergency Fund
If you have an emergency fund, then use it! Yes, it can be sad to see your savings dwindling, but money emergencies are exactly what savings are for, and there is no point hoarding them while your financial life falls apart around you!
4. Consider “Buy Now, Pay Later”
When you need something urgently but your bank account is screaming “NOPE,” buy now pay later options can be a lifesaver. BNPL services like Afterpay, Klarna, or Affirm allow you to make a purchase and spread the payments out over time, usually with little to no interest if you pay on time. This can be a great solution if you need to buy something essential, like new tires or an appliance, but don’t have the cash on hand. Just be careful not to overextend yourself—only use BNPL if you’re confident you can make the payments on time.
5. Sell Unwanted Items
Remember that closet full of stuff you swore you’d declutter one day? Well, today’s the day! A money emergency is the perfect motivation to finally get rid of those things you don’t use, need, or even remember owning. From clothes to electronics to that random exercise bike gathering dust in the garage, you’d be surprised how much cash you can raise by selling unwanted items. Use online platforms like eBay, Facebook Marketplace, or apps like Poshmark and Decluttr to turn your clutter into quick cash.
6. Explore Side Gigs
In today’s gig economy, there are plenty of ways to make extra money on the side. Whether it’s driving for Uber or Lyft, delivering groceries with Instacart, or offering freelance services on platforms like Fiverr or Upwork, there’s no shortage of opportunities to earn some quick cash. If you have a particular skill or hobby, like graphic design, writing, or even pet sitting, you can turn that into a side hustle to help get you through your financial emergency.
7. Negotiate Your Bills
You might be surprised at how many of your bills are negotiable. If you’re in a tight spot, don’t be afraid to reach out to your service providers—whether it’s your utility company, internet provider, or even your credit card issuer—and ask if they can help. Sometimes, they’ll offer a temporary payment plan, lower your interest rate, or even waive late fees if you explain your situation. The key is to communicate before you miss a payment, not after.
8. Ask for Help
It’s never easy to ask for help, but sometimes it’s necessary. Whether it’s a loan from a family member, a friend, or even tapping into community resources like food banks or financial assistance programs, there’s no shame in reaching out when you need it. Just make sure that if you borrow money from someone close to you, you’re clear about the terms of repayment—nothing ruins relationships faster than money misunderstandings.
9. Use Credit Wisely
If your money emergency is more of a “need money now” situation, using a credit card might be an option. However, this comes with a big caution sign. Only use credit if you’re confident you can pay it off quickly, and avoid high-interest cards or payday loans that can trap you in a cycle of debt. Look for a credit card with a 0% introductory APR offer if you need to finance a big purchase or transfer a balance. Just make sure you have a plan to pay it off before the interest kicks in.
10. Cut Non-Essential Expenses
It might be tough, but in a money emergency, cutting out non-essential expenses can free up some much-needed cash. This could mean pausing your gym membership, skipping takeout, or putting your subscription boxes on hold. Remember, these cuts don’t have to be forever—just until you’re back on solid financial ground. Consider it a temporary sacrifice for long-term stability.
11. Take Advantage of Community Resources
Many communities offer resources for those in financial need, especially during emergencies. Food banks, utility assistance programs, and nonprofit organizations can provide help with essentials. It might not be a permanent solution, but these resources can give you some breathing room while you work on a longer-term plan.
12. Look into Government Assistance
Depending on what’s going on with your finances, you might be able to get some help from the government via programs like unemployment benefits, Temporary Assistance for Needy Families (TANF), or Supplemental Nutrition Assistance Program (SNAP), so be sure to check them out - there’s no shame in it!
13. Plan for the Future
Financial crisis averted? It’s time to plan for the future so that it never happens again!
Money emergencies are never fun, but you can get through them, so try not to panic (that will only make things worse) and do what you can to get back on track!
