Three Ways to Find Financial Resources When You Need Funding Quickly

We all try to be solid and responsible financial planners. We budget, pinch pennies where possible, and make schedules of our bill deadlines so no payment gets missed. Yet, for all our efforts, we can sometimes fall short of the mark. Sometimes, a payment is due or another crucial requirement comes up and we might find ourselves strapped for cash. If you’ve ever been in this situation or known someone who has, you know it can be a devastating and embarrassing position to be in. Thankfully, all hope is not lost. There are a few resources you can call upon when you need funding quickly. Today, we’re taking a look at three best bets.

1. Personal Loans

This is often the first avenue that many people try when they’re looking to obtain money quickly to meet a pressing need. While a viable option, it’s important to keep in mind that working with a professional lender is an obligation and responsibility and one that should be taken seriously. As such, personal loans should only be requested to fund serious, emergency scenarios. If your car breaks down and you can’t drive to work until it’s fixed, that qualifies. If that designer handbag you’ve been coveting finally goes on sale but you’re still a few hundred dollars short of affording it, that does not.

Moreover, most personal loans carry a hefty interest fee so while it might feel nice to get that cash in your pocket as quickly as possible, understand exactly what you’re signing up for. Likely, you’ll be paying a significant amount more for the item once it’s all said and done. There are also differing timelines to consider. Personal loans you can request and secure online are the quickest and can get you back on your feet in no time. Pursuing a similar loan from a bank or credit union could take a few weeks or longer.

2. Payday Advances

If you’re employed, speak to your employer about possible receiving an advance on your next paycheck. While some might have a stern policy against this type of flexibility, remember that your bosses are people too. If you have a dire circumstance that directly affects your quality of life (for instance, not being able to afford next month’s childcare), he or she may be willing to work with you a little. There are also some apps that allow you to bypass some of that red tape and give yourself the advance.

You’ll scan a copy of your electronic timesheet into the app and request the amount from it that you’d like to draw, telling the app how many hours you’ve worked that week. This can be a valuable resource if you have an immediate financial need, such as a bill payment, that cannot wait until payday. Key points to remember with apps like this is that most have a daily limit (usually around $100) and the lag time can take up to one business day. It’s not exactly the route to take if you’re stranded and need money immediately, but if you can wait a little while and you don’t mind a smaller check when payday does roll around, it could work to your advantage.

3. Ask Family or Friends

If you do find yourself in the situation where you need money as quickly as possible, sometimes the only lightning-quick way to do it is to ask trusted friends or family members. While you might be comfortable with the person you ask, it’s often wisest to treat this like any other business transaction. Be sure to get everything in writing and set a strict payback schedule so you don’t forget or let too much time pass.

Depending on the nature of your relationship, the payee might even tack on interest to the loan, so be prepared for that option to come up. Remember, doing business with family members can be the trickiest situation at all because there are emotions involved. No one likes the feeling of owning someone a debt hanging over their head. So, make the timeline for payback as short as possible.

Financial Assistance for the Short-Term

The options above can help you make ends meet until a more reliable source of funding arrives. While they’re fine to use in small doses, remember that the best way to achieve financial security is to set reachable goals, save as much as possible, and budget for both the things you need and the things you want.

If you find yourself relying on any of these mechanisms month after month to help pay for your routine expenses, you may need to speak with a financial counselor to get your spending in check and make sure there isn’t a deeper issue lurking beneath it. In the meantime, rest assured that even in the direst of situations, you can often find someone or some entity willing to help. So look around and do your research, confident that should you find yourself in need, you know where to turn.