wage, but, when the times get tough and the money just is not there to meet
the need, a person can easily despair.
101 Ways to Raise Emergency Money has been written with you in mind. If
you are forever trying to come up with inventive ways to earn and save more
then this creative ebook will absolutely thrill you.
When a person can have good financial control and a good plan of action.
Should emergency funds be needed, a person can then sleep better at night.
There is no real magic formula for coming up with on-the-spot emergency
cash. There is a good deal of thinking through and the putting of a good plan
into action. If you can do that, you have it made. That is truly all that any
one of us can do to secure out tomorrows.
Learning to Cope with a Money Emergency
Wherever there are money woes, you can be sure to find crippling emotional
setback. Avoid it all you try, you might just as well begin to prepare for the
devastating fiscal and the emotional fallout that is sure to come. You will
need to cope very well with both if you hope to make a solid financial
comeback.
Whenever a money emergency hits, it will be your ability to deal with the
individual pitfalls that will hold you in good stead. It is when a series of
financial hits come your way that the stress will tend to accumulate and
make your life much more difficult to cope.
You will not be so overwhelmed when you can calmly and rationally look at
each individual problem as it arises. If you sit back wringing your hands with
worry and allow all of your emergencies to pile into one; you will find yourself
down for the count.
Calm must take center stage. You must NEVER allow yourself the luxury of
panic. There is no one there for you to just take over. You are all you have.
The more you panic, the less effective you will be. You need to keep a very
clear head to be able to sit down and come up with an appropriate plan. Be
aware of your own tendency to sabotage your plans further. It is only when
you are at your most calm that you will be prepared to get to where you
need to be and then overcome.
Being Calm is the First Key to Managing a Money Emergency
At even the first hint of a money emergency, it’s important not to act right
away. If you do you will inevitably make a mistake! First, before you can
manage your finances again, you have to first manage your emotions. You
absolutely must regain your balance before you can even begin to make a
plan.
If your money emergency demands that you act quickly, think first about
seeking the advice of a debt counselor, money coach or financial planner.
Whenever possible think about seeking out the aid of a financially perceptive
friend or family member who can help you to come to a clearer perspective.
Remember the old adage that “two heads are always better than just one!”
You won’t need to make a major cash investment if you’re strapped. Look for
a planner who will give you a one-hour consultation for $150. Often times
this will be all you will need to securely turn the corner
Time to Crunch some Numbers
The first step toward establishing financial stability is to step back, take a
deep breath and assess the damage. Possibly one of the bigger mistakes
people make when they’re in a financial crisis is not being prepared to make
a clear assessment of where they’re at.
You can easily become overwhelmed. However, totaling up the damage
serves two important purposes. First, you need to know exactly how much
you owe, how much money you have in hand and what it will take to cover
the distance between the two. Second, you will want to avoid any other
mishaps, such as penalties, further repairs, missed deadlines, etc.
If you are not properly prepared, you must become prepared on the spot.
Any type of money crisis will catch you unaware and you will feel cornered.
Wouldn’t it be ideal to be ready and waiting for the crisis? How likely is this
to happen to you, though?
Most people will be at least somewhat prepared. If the crisis is not too dire,
they will be able to handle it ok. Some will be sunk from the get go. The idea
is to not be overwhelmed and to have a good plan of action, no matter how
little or how a lot. You need to be entirely prepared to deal with any sized
setback.
Ideally, those unexpected expenses could be covered by the funds in the
Irregular Expenses account in any good budget. Unfortunately, though, there
is always a common problem. You might well have an emergency stash—but
it’s most often depleted. This same problem affects the majority of us so take
heart.
At about this time many people make the mistake of turning to plastic for
relief. Resist this one. You will only be transferring your problems from one
pocket to the other.
On the other hand, if you are sure you can handle using credit cards to deal
with a cash emergency, you had better be sure you could pay them off when
the time comes. Otherwise, why add yet another debt and another problem.
Eventually, it will all catch up with you.
If you’re truly running while on your last leg, consider taking out a home
equity line of credit. This will work for some. The interest is tax deductible,
but those aren’t fixed rates. Be smart about this remedy, though. Unless you
plan to pay back the amount you borrowed promptly, it can end up costing
you more than you thought—especially if you’ve already depleted your own
equity
Start to Build your Emergency Fund
Finding money during an emergency can be very difficult if you fail to plan.
Establish emergency savings in both good times and in bad. The chance is
very good that you will be called upon to put out a sum of money on the spot
and when you least expect it.
It is a very good rule of thumb to sock away three to six months’ living
expenses. You can also use this same money when you’re faced with major,
unplanned expenses such as a car that breaks down or much needed college
funds.
The purpose of this type of savings plan is to put the money away
consistently, and then tap into it for true emergencies. The success of this
type of long-range savings plan will depend less on the rate of return than
on, day-by-day, putting the money away and then leaving it there for a true
emergency.
Lock it away and then hide the key.
People who are living on a fixed-income will have the toughest time setting
aside money for emergencies. If you can manage to just squeeze out another
$10 or $20 each month and sock it away into a money market account, it’s
worth doing.
If you decide you need $2,000 in an emergency fund, look at what you can
afford to sacrifice each month from your current budget and then look at that
sum of money as a bill to pay yourself. Decide on a monthly amount and
then put that same amount aside every month and then watch it grow.
Once you have reached your goal of $2,000 you’ll now be in the habit of
putting away that extra set amount each month. Keep on doing it.
Financial planners echo the idea of treating your emergency fund as a bill.
Put the money away each month, but don’t be tempted by the latest sale.
You are not to touch the amount, except for in an emergency.
Putting money aside on your own is hard. Retirement plans are successful
because the money comes out of your paycheck before you can get your
hands on it and because there are taxes and penalties for early withdrawals.
Stashing money away in an easy access money market account takes
discipline. Limit your access to the emergency fund. You can have immediate
access to some of the money, but not all of it. The bulk of the fund is to be
used, strictly, for emergencies and nothing else.
Once you have saved up about two months of living expenses, move one
month of expenses to a one-month CD. When the CD matures, roll the
principal and interest into another one-month CD. Your savings will grow well
this way.
As you continue making regular payments to the emergency fund money
market account, you will soon have another month of living expenses that
can be used to invest in a two-or three-month CD. If you are wishing to set
aside six months of expenses, continue the process until you can comfortably
purchase a six-month CD. Your savings will accumulate quickly this way
Painless Ways to Find Money for an Emergency
If your plan for money for your next emergency is to scoop up the change
that falls between the cushions, you might want to come up with a plan to
add to that stash. It is always a good idea to have a little extra green for the
lean times. Rainy days could be just around the corner. Rainy day funds
become necessary! Here are some very clever and virtually painless ways to
put aside some money now!
Put aside a large envelope, cookie tin, coffee jar or something similar. At the
end of every week, throw a couple of dollars aside. By the end of your first
month you should have some extra cash put aside to have a nice start on an
emergency fund. The idea to doing this is don’t count it or spend it. Place it
somewhere that is hidden away. Put it somewhere that you won’t be tempted
to dip into it. This kind of money really adds up!
The next time you treat yourself or your family to a meal out, tip yourself!
Just as you go to tip the waitress 15 to 20 percent, put the same amount
aside for yourself. When you get home, stash it away in your cookie jar.
Every time you go through a fast food window, put a dollar away for that
cookie jar, too!
The next time you get a good raise, instead of applying it to your cost of
living, bank it! This way you will always be living one raise behind and your
bank account will be growing by some 3 percent.
Take advantage of that cash back option! Next time you make a purchase
using your debit card, ask for a small amount of cash back. Instead of
spending it, stash it away in your cookie jar! Chances are you won’t even
miss that extra $1, $2 or $5 bill and come emergency time, you will notice
how the amount has piled up.
Next time you pay off that big-ticket item like a new car or tuition, continue
to make the payments to yourself! Set up a savings account and each month
slip the ghost payment into it. Watch as it builds nicely.
If you have noticed that you can get a better long distance telephone plan
and you want to switch, allocate the savings to your cookie jar. You won’t
likely miss that little bit of extra money, and you will have a better telephone
plan, too.
Consider joining a Christmas club. You will save a lot of money. Each year
you put aside a bit of money and place it into a hamper program. Then, as
Christmas rolls around you don’t need to scramble looking for Christmas
cheer to share with your family. Your hamper arrives filled to the brim with
all kinds of seasonal goodies that you paid for over the previous year. You
can easily put aside $50 each year towards your emergency fund this way
and you and your family will enjoy a hassle free Christmas.
Sign up for a grocery shopping membership card. At the bottom of your store
receipt, you will see a print out that states how much you save each week. It
really adds up. You can easily save an average of $15 on each weekly
grocery trip. Add that amount, each week, to your savings cookie jar.
Did you enjoy your tax refund this year? Sure you did, we all did. That’s
because of the new tax laws. Many people will have a little extra money
coming their way after April 15. Decide to deposit that extra money right
away into your savings account or cash it and then stash it. Sure you can
come up with plenty of ways you can use that money now, but put it away
for later. You might need it even more later.
If you are a responsible spender, take out a credit card that rewards your
loyalty. When you pay off the bill every month, use a card that promises a
cash reward and bank the money. Use your reward credit card smartly and
you could end up with a very nice windfall for your rainy day fund.
Put aside a large mouthed jar in the kitchen. It is very likely that your
parents and grandparents had one. At the end of each workday simply empty
your pockets or clean out your change purse. All the change goes into the
jar. Who wants to carry around all that dead weight, anyway? Your spare
change adds up a lot faster than you think. While you are at it, add at least
one bill to your change jar at the end of each week. Aim for a $20!
Is it time to give up that nasty smoking habit? Imagine the money you will
save! If you are not quite ready to quit at least cut back by half. Put the
savings each day into your change jar and watch it overflow!
Convert to a coin-operated laundry. Keep a jar on your washer and dryer and
every time you go to do a load of laundry, slip in a coin or two. This adds up
month by month.
The next time you go to return a movie rental on time, pay yourself the late
fee. You will see how quickly that $1.50 to $4 can add up.
If you yearn to loose some weight, try rewarding yourself the cost of the
item that you do without each day. Put that money into your change jar. You
will look great and you will be saving for a rainy day!
Place a large jar by the telephone. Everyone must drop in a coin to make a
call. All proceeds go to the emergency fund. This one works!
More Creative Ways to Save Money
Shop for clothing at thrift shops (especially for young kids). Look for
gently worn or even new clothes for 1/10 the price of new (or less).
Pay your bills online. It’s protected and you can save with stamps.
Put your kids on the school bus rather than driving them to school.
Slipcover or reupholster older furniture for a quick update rather than
buying expensive new furniture.
Refinish furniture and/or decorate with new paint. Use older and
broken furniture to make a unique piece.
Take your lunch to work every day! Make your meals in bulk and then
freeze them in smaller containers to save even more money.
Buy a bread maker to make your own bread. This is much cheaper than
$2.00 a loaf, and tastes terrific!
Shop for dented canned goods and outdated toiletries at salvage grocery
stores.
Read magazine subscriptions at the library or buy them at the thrift shop
for .25 to .50 after someone else has read them.
Stop drinking expensive sodas and make Kool-Aid or decaffeinated iced
tea, instead.
Cancel expensive telephone options like call waiting.
Check out library books instead of buying expensive new titles.
When you wash your hair every day don’t lather twice. Saves shampoo!
Change your eating habits and avoid expensive, processed foods.
Exercise and eat right to keep your doctor bills down.
Brush and floss your teeth to keep the dentist bill down.
Keep up on regular auto maintenance and avoid costly repair.
Mend your clothing instead of buying new clothes.
Buy only clothing that does not require dry cleaning.
Take care of your own nails. Avoid manicures.
Simplify your hairstyle – wear a hairdo that doesn’t require much
maintenance.
Get at least 3-6 quotes when shopping for items over $100.
Develop self-control and simplify your life if possible.
Buy only inexpensive, no-name drugstore cosmetics.
Cut your dryer sheets in half.
Buy generic over the counter medicine rather than name brand items
when possible.
Buy generic baby wipes, diapers, and formula, anything you can for the
baby.
Look for quality, name brand clothing at garage sales in more affluent
neighborhoods.
Find fashionable clothing in the sale departments of stores like the Gap
and Stitches.
Keep in fashion by finding basic colored tees and skirts and then add
cheaper, trendy accessories.
Buy baby clothes privately from someone that has an older child (one
year older) than yours. You can find good quality clothing cheaper this
way.
When you get change back from a purchase put it in the piggy bank.
Always give the cashier whole dollars, not the exact amount. In a few
months, you will have “found” money that can be used for an emergency
fund.
You can save money by shopping for groceries in the “bulk foods” aisles in
your grocery store.
Bulk up in the wintertime. You don’t need the heat above 68 degrees in
the winter inside your house. Wear warm clothes and socks/slippers while
in the house.
Use all plastic bags you receive at the grocery store for trash bags.
Some grocery stores give you a 5-cent credit per bag if you bring your
own bags. Pennies add up over time.
Instead of buying a new house, rent to own. The payments are cheaper.
Install a water softener. It might be expensive to start up, but in the long
run, you use less shampoo/conditioner on your hair and it saves your
appliances (pipes, iron, washing machine, dish washer, kettle and hot
water tank) from clogging up with lime scale.
Breastfeed your children!
Save money when shopping next time at the supermarket by
remembering to check the lower items nearer to floor level as they are
often much cheaper than those at eye level. Also, resist the temptation to
purchase extra items at the checkout such as magazines and candy bars.
When you receive a gift that you are sure you won’t use, re-gift! The next
time you will need to buy a gift – give away one of your own.
Buy, slaughter and butcher your own cow. The average cost of the meat
is $1.00 per pound.
Hand-pick your own fruits and vegetables in season. They are less
expensive and better quality foods.
The next time you yearn to see a movie wait to see it on DVD at the video
store.
Quick braking, cornering, and accelerating (speeding) will eat your gas up
considerably. Never let your fuel needle go below a ½ tank, or fill it up
when you drive it to “Empty”. Nickel and diming your gas tank gets you
no where fast!
GOOD WAYS TO FIND FREE MONEY
If you are tired of making lifestyle changes to accommodate your savings
plans then read on. These ideas lead you to prime places to look for money
that’s already rightfully yours.
Some people see little point in changing their ways to save a quick $5 or
$10. These same people find it difficult to believe such small amounts can
actually make a significant difference to their bottom line. They’d much
rather indulge in a little daily luxury, like enjoying a cup of espresso each
day, then tighten their belts for what they see as measly savings.
For all the spendthrifts at heart, here are some concrete ways to save on
things you are already paying for. No need to change your lifestyle or habits
in the least. Think of it as money that you are already overpaying to others.
Step up to the plate and claim your free money!
Talking on your cell-phone
You thought you were going to need 2,000 minutes a month, only to find 300
or even 200 would do just as well.
If you’re coming to the end of your contract, or if your service provider is
willing to waive the early-termination fee, ask to have your deal changed as
soon as possible.
Think about this: Verizon’s America’s Choice 3,200-minute plan runs about
$200 per month; you’ll spend just $40 for its 400-minute America’s Choice
plan. This is provided you don’t start going over on your minutes and
incurring pricey overage charges, that’s $160 in savings each month, or
$1,920 a year. Even changing from the America’s Choice 1,100-minute plan
at $80, would still cut your telephone bill in half for an added $480 in your
pocket.
Local and long-distance calling: If you’re not using all of your cell-phone
minutes each month on a plan that doesn’t allow you to just roll them over,
you can at least offset your landline costs with those otherwise-wasted
minutes. Are you already doing this? Try bundling your local and longdistance plans if you’re regularly spending more than $50 per month. Many
bundled plans start at just $50 before taxes and fees and allow you to talk
for as long as you want without the huge bills.
Calculate all of the above carefully, though. If your usage is not steady, you’ll
pay the same rate every month, meaning no breaks for vacations when your
usage normally decreases.
Your checking account: When was the last time you looked at the monthly
fees your bank assesses on your checking account? By switching to a noninterest-bearing account, you can pay far less money and avoid higher fees.
Bankrate.com’s annual survey of checking accounts found that average
monthly fees are up to $10.86 on interest-bearing accounts, vs. $3.72 for
regular checking accounts. You’ll have to keep $2,258 socked away in that
interest-bearing account to avoid fees versus the $245 minimum for the noninterest account. So, what are you giving up?
Average yields sat at a paltry 0.27% in the fall of 2003, the time of the
Bankrate report. Meantime, if you can, try to plan your ATM withdrawals. The
average fee you’ll pay for using another bank’s ATM machine is $2.69 --
$1.40 to the ATM’s bank and $1.29 to your own. Eliminating only one of
these withdrawals each week can save you a nice $140 per year.
Your insurance: You can save on your insurance policies in a variety of ways.
Ask your insurance provider outright for discounts: Besides the usual good
student and safety discounts on auto policies, ask for a multi-policy discounts
if you’re insuring more than one vehicle. Raise your deductibles on older cars
or drop collision coverage altogether if your car is worth less than $1,000.
Raising your deductible from $200 to $500 can reduce your premium by as
much as 30%, according to Insure.com.
NEVER overpay to borrow your credit cards. Do you think that 2% or 3%
isn’t worth fighting for on your credit card’s APR? Consider this: If you’re an
average American, you owe $8,940 in household credit card debt, according
to CardWeb.com’s CardData Service. At the average APR of 16.44%, you’ll
pay $1,470 per year just in interest alone.
For every 1% decrease in APR, you will save $89. However, the difference is
far more dramatic over the entire life of your debt. Figuring you can make
monthly payments of 5% of your debt per month, you’ll pay $3,334 in total
interest at the higher rate. However, at an APR of 13.44%, you’ll have paid
$2,551 – that is 23% less.
Also, lots of cards come with added benefits, such as airline miles or, better
yet, even cash back. American Express’ Blue Cash card rewards you with up
to 5% cash back; the GM card awards 5% back toward a GM new car
purchase or lease. On the average credit card debt of $8,940, that works out
to $447. Use MSN Money’s Credit Card Analyzer to find other low-rate and
cash-back cards. In addition, you can check CardWeb for a list of the
monthly rewards that credit cards are offering.
Your mortgage. Your biggest savings potential here is to get rid of PMI, or
private mortgage insurance. PMI protects the lender should you default on
your loan. You’re obligated to pay this so long as your equity remains below
20%, but once you cross that magic threshold, you should ask your lender to
drop the fee.
The law actually says your lender must drop the fee once your equity crosses
22%, provided you have a conventional loan originated or refinanced after
July 29, 1999 and you have a good payment history. However, if you have
an older loan, you could be paying this unnecessarily without realizing it.
Depending on the size of your mortgage, this could be adding hundreds of
dollars to your mortgage cost annually. Look into this, today.
Make the most of your current resources
Begin by using what you have. Paying for Internet access already? E-mail
can be a great way to cut your long-distance telephone costs. It may not be
a substitute for your weekly heart-to-hearts with Dad, but it probably should
substitute for the “when can we get together again?” calls. Why spend
precious money leaving voice mail?
Take the time to get rid of what you don’t use. If you’re not using it, you
won’t miss it when it’s gone. Donate all unwanted items for a tax deduction,
have a garage sale or sell them on eBay. If you have to come up with money
for a storage unit for all that stuff, it’s time to eliminate that debt.
Pay attention to potential income
Perhaps you have had a hobby for years but have never considered it as a
money earner. Take a good look at it now. If you love to scrapbook, consider
putting an ad in the paper to teach others how to do the same. At the same
time, establish a Web page where others can sign up to learn your craft
online.
Could you have old money just waiting to be claimed? Perhaps, you made a
move and forgot about an old bank account. There are plenty of free sites
that list people who are owed money by insurance companies, banks and
utilities. Try MissingMoney and CashUnclaimed.
Ask for a deal
It’s that time again when you need to go out and buy a big-ticket item. You
know by now to shop around for the best price but are you prepared to ask
for a deal. Next time you have your heart set on that ruby ring and you are
prepared to drop 3K to make the purchase, stop and think about haggling
that price a bit. Don’t just assume because you are at a finer jewelry store
that the price will be carved in stone. Ask. It never hurts to ask.
