It's easy to get caught by a gap in your finances. Even if you budget carefully, unexpected expenses can come along. When it happens, you might start to panic. How are you going to make sure you pay your bills and still get to eat? You always have a number of options available but deciding which one is best can be tricky. Each one has its pros and cons, so everything method of surviving isn't equal. If you're facing a gap in your finances, have a look at the risks and benefits of the following choices to help you decide.
Borrowing from Friends or Family
For some people, the first thing they think of will be asking to borrow money from someone they know. However, for others, this is the last thing they want to do. You might feel embarrassed or too proud to ask someone for a loan. On the other hand, you might know that someone will lend you the money and trusts you to pay it back. If someone is willing to give you a loan, it can be one of the easiest ways to borrow. However, the risk is that it could affect your relationship. If you don't return the money, it could mean losing a friend or falling out with a family member.
Short Term Loans
Short term loans allow you a more official way to borrow a small amount of money. Many people find them useful to bridge a gap in their finances. You can use them to pay for your expenses, then pay the money back on your next payday. One of the benefits of a short term loan is the speed at which you can get approval. You can apply for one online using a site like https://prettypenny.co.nz/short-term-loans/. You could have the money you need within a couple of hours. However, it's also important to remember the risks. You need to ensure you can pay back the loan, especially if there could be fees for late payments.
Selling Some Stuff
If it's very rare for you to need extra cash, selling some of your things could be an option. You might have something you no longer need. Or you may even be able to return a recent purchase. It's a quick and easy way to get some cash, especially if you don't need much. You can sell online, using sites like http://www.ebay.com/. However, this is an option you can't use all the time. It only really works for a one-off, unless you have a lot of stuff you can sell.
Adjusting Your Budget
You have some money left, but you're not sure how to stretch it until the end of the month. It's not enough to meet your usual budget. When this happens, you have the option of cutting down your expenses for a couple of weeks. Take care of the most important expenses first, such as bills. Then adjust your spending to fit what you have left. It won't hurt to go without coffee for a few weeks or even eat instant noodles for a bit. However, this option only works if you have enough money to survive.
There are risks and benefits to any method of bridging a gap in your finances. Make sure you examine them all to make an informed decision.