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Making Smart Decisions When You Need Extra Money

Need Extra Money?

When you’re facing financial troubles, there are basically two solutions open to you.

1) You can find a way to reduce expenses


2) You can find a way to make more money.

There are plenty of tips for lowering costs every month, but bringing in extra money can be a little harder.

Here are the best places to get some extra cash, as well as a few ideas that aren’t nearly as attractive.

Credit Card Cash Advance – Bad Idea

Not only will you pay higher interest rates, but the increased payment next month will leave you in more of a bind. Getting a cash advance isn’t bringing extra income to the house; it’s only increasing the amount of your debt and putting you further behind.

Retirement Funds – Bad Idea

You are stealing from your future when you take money out of your retirement accounts. Not only are you going to regret it later, but you’ll also regret it when tax time rolls around. The government will take a hefty ten percent penalty, and you’ll be wondering why you didn’t look for another solution.

Selling Family Heirlooms and Valuables – Bad Idea

If it’s something you don’t like anyway, then it can be a viable option. However, the fact is that that $50 dollars you might get for your grandmother’s antique brooch that you love and cherish will soon be gone, and the regret could linger forever.

Payday Loans – Bad Idea or Good Idea?

Whether the payday loan is smart or not depends on the alternative you are facing. If you are a hundred dollars short on the rent, then the $30 or $40 dollars you might be charged for a payday loan is a lot cheaper than an eviction. Write down the fees you are facing if you don’t get an infusion of cash, and then you can decide whether this is a good idea or not. You should also have a plan for how the payday loan will be paid off when the time comes.

Selling Stuff you Don’t Use, Love or Want – Good Idea

Extra money, Garage Sale Princess

Extra money, Garage Sale Princess—BarGal (Flickr.com)

While selling cherished heirlooms isn’t wise, selling the other stuff lying around your house is incredibly smart. Furniture you don’t use sells fast on Craigslist, as well as tools and other cool stuff. If you have a ton of books and media to part with, consider setting up an eBay store and moving it out that way. You can also have a garage sale if you have a lot of nickel and dime items that you just want out of the house.

Freelance Work – Good Idea

Do you have a skill that could be put to good use? You don’t have to be a whiz at engineering to do freelance work. You can take any skill and put it to work writing blog postings about your passion. If you take incredible pictures, then your second calling might be waiting as a wedding photographer. Think about what you love to do, and then see if there’s a way you can market it.

Second Job – Good Idea

You may not like the idea of working another job, but it can help you get ahead financially. Paint houses on the weekends, offer services for yard work or just get an evening job at your favorite store. The extra income will be welcome, and you will finally start getting ahead financially.

There are many ways to change your financial position. The key to finding the right one is to consider the long-term. Don’t sell something that you will regret for the rest of your life, but do consider taking a part-time job so you can have money to get out of debt. Taking the time to consider the long-term impact of your decisions will help you find the right course.

About the Author:

Donald Kyte is a personal finances guru and freelance blogger writing for www.paydayloan.org.uk.