Everyone knows that you need to have a minimum of 3 months expenses set aside in an emergency fund. That doesn’t mean that all of us do. While that might be ideal, it can also seem to be an insurmountable task since many of us barely make ends meet as it is. To that end, here are a few options for those who either can’t afford or don’t want to have an emergency fund.
Get a Loan
Getting an unsecured personal loan from a loan association or a bank can be a quick way to get the cash you need. These easy to apply for personal loans are recommended for when you need a small amount of cash to cover any emergency that might arise. It only takes a few minutes to apply for these and you can have access to the funds quickly, and for this reason, this is a good option.
Use Your Roth IRA
This is another of your options in an emergency. If you need access to those funds in your IRA in the event of an emergency, you can withdraw an amount equal to that which you contributed without any sort of fees or penalties. You can always replace it once the emergency passes. There may be restrictions on what you can use the money for, so be sure to do your due diligence and understand the conditions.
When you experience an emergency, money might not be the only thing that is needed. You might need things that can be stored in your pantry as well. Never underestimate the value of things like crackers, peanut butter, canned tuna, and bottled water. If the emergency happens to be some sort of natural disaster, a stash of this nature will come quite in handy.
You more than likely won’t get top dollar when you need to sell things quickly, but if you’ve made your peace with selling a high-value item or two in order to get over that financial hump, that collection of baseball cards that you’ve had since you were a child or that expensive painting hanging on your wall might just get you out of that financial hole. That said, you need to know what the value of these things are. Don’t just think that something you have might have value, get an appraisal to know for sure.
If you need a larger amount of money, taking out a home equity loan might be a good option. However, you need to be aware that this type of loan is secured, and you’ll be putting your home up as collateral. Still, if you’ve managed to build up quite a bit of equity in your home, you might be willing to use a bit of it to get you through your current crisis.
A financial emergency isn’t the end of the world. If you’ve prepared for it, great! If not, there are still things that can be done to get you through it.