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What to Do When you Need More Money

Boost Your Income

If you are chronically short of cash the obvious first step is to try to increase your income. If you are a stay-at-home parent or even if you are already employed there is no reason why you can’t boost your income further to make it easier for you to cope with any unexpected payments. Part-time work or home businesses are one option but families can also make some quick money from simple activities like garage sales. This is a great opportunity to clear out your cluttered family home and is a great chance for children and parents to bond. You can also sell items on eBay where you are more likely to get the best price. Even though someone in your neighborhood might not be looking for that item there might be a dozen bidders around the country that are looking for exactly that. You can also sell your used books on Amazon and unneeded furniture, treadmills and other heavy items on Craig’s list.

Reduce Your Expenses

Save MoneyThe next thought that often comes to mind after increasing your income is reducing your expenses. If you find you are overspending regularly then perhaps it is time you looked at your finances. Families can find it hard to keep track of all of their ingoing and outgoing payments so it might be wise to turn to online banking to help you keep a closer eye on what’s going on in your account. Some banks allow you to create sub-accounts that allow you to set asside money for saving, for vacations, for certain bills or whatever you choose. Reviewing how much you are spending could help you to address areas where too much money is going out. The key is to look at all your expenses, track them and then eliminate the unnecessary ones. Simple things like eating out less, and skipping expensive first run movies can help. But more importantly cutting back on recurring expenses like trimming cable services back to the basic package, eliminating the landline phone in favor of Magic Jack or simply a basic cell phone (without the fancy smart phone features) can all add up to hundreds of dollars saved every month.

But if you still run into a deficit one particular month you can try this:

Speak To Family And Friends

If you’re only struggling to find a small amount of money then speaking to friends and family may be a better option than dipping into your overdraft or  reaching for the credit card. More often than not they’ll be willing to help for infrequent needs if you will be able to pay them back relatively quickly  – allowing you to cover costs without incurring interest. For larger sums though, this option may be better avoided though as owing those you know money can put unnecessary strain on your relationship.

Borrowing Money

Borrowing should always be your last resort. But if you need a larger sum of money – to purchase a new car for example – you should definately look at all your loan options. There are plenty of options available from loan companies and at the moment interest rates are low. Be sure to choose a reputable firm which will be able to advise you on which are the best loans for your situation. You should never take a loan unless you’re confident that you can make the repayments and you should always look at the interest rate closely.

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Image courtesy of Daniel St.Pierre / FreeDigitalPhotos.net

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