How to Get Out of a Financial Bind without an Emergency Fund

There are many ways you can get into a financial bind, whether you fall behind on bills or get hit with an unexpected expense. Tapping into an emergency fund would provide relief in these situations, but what happens if you don’t have one? Read on to learn some ways you can get out of a financial pinch quickly if you don’t have money saved up:

1. Use your credit card

Credit cards can be used as a reserve fund if you manage them properly. That means making monthly payments on time and not allowing the balance to get too high. Ideally, you’ll want to use a credit card sparingly and pay the full balance due each month. If you’re unable to do that, pay more than the minimum when possible so you can have some bandwidth for emergencies.

2. Get an instant online loan

Applying for an instant online loan is fast and easy. You also don’t need to have a great credit score to get approved. There are dozens of online lenders who work with poor-credit applicants to get them the funds that they need. Applicants with higher credit scores will get better rates and terms, but poor-credit borrowers can still get the funds they need if they search for the right lender.

3. Borrow money from family and friends

You may not want to go to family and friends for cash, but some situations warrant it. When you bring up the topic, clearly explain your situation and don’t be upset if they say no. If they agree to lend you the money, make sure to put a repayment plan in writing. This will ensure that you’re all on the same page.

4. Review your budget and cut expenses

Sometimes, simply cutting out expenses can help you get out of a financial bind. Review your budget and see where you can cut unnecessary costs such as take-out food or expensive cable TV packages. Eliminating these expenses and adjusting your budget may be just what you need to get back on track.

5. Look for a side hustle or get a second job

Increasing your income is a great way to avoid getting into another financial bind in the near future. Look for a side hustle doing something that you love, like online writing or dog walking. If you have the bandwidth, find a part-time job in the evenings or on weekends. That will keep you earning instead of spending during those hours.

6. Start an emergency fund for next time

Building an emergency fund can help prepare you for the next time you’re in a financial pinch. Many experts recommend saving three to six months’ worth of expenses. To start an emergency fund, you can open a savings account and put money toward it each week, even if it’s just a few dollars. Small deposits add up to large bank balances over time.

The bottom line

If you’re stuck in a financial bind, don’t worry. There are many options you can choose from to get the funds you need. Use your credit card, get an instant online loan, borrow from friends and family, or cut expenses to get out of your current financial bind. Once that’s done, try increasing your income and building an emergency fund so you’ll be prepared the next time you get an unexpected expense.