Inflation might be heading in the right direction these days, plenty of people are dealing with budgets that remain too tight for comfort. While it’s not always feasible to go out and find a second (or third or fourth) job to help make ends meet, there are some relatively simple ways that most folks can pad their pockets with some extra dough.
Where to start
After realizing that you need some fast cash, the next step can feel overwhelming. By starting off with small, manageable moves, however, it’s much easier to start tracking progress and moving closer to your financial goals.
Here are a few ways that you might be able to get the ball rolling:
- Many companies pay people for taking surveys. It’s easy to do, but the pay rate is generally pretty low.
- Taking out a personal loan might help. It’s great for short-term relief, but the long-term cost could be prohibitive.
- Homeowners could opt for a reverse mortgage. This might make sense for older folks, but it won’t apply to everyone.
There are a few other options, including cashing out a refinanced mortgage or taking a loan against a life insurance policy. Of course, it’s important to have a clear understanding of all the requirements and restrictions of each option before taking the plunge.
Risk vs. reward
Although a cash shortage is serious, it’s always a good idea to look at the big picture and determine if a particular method of bringing in money now will still make sense down the road.
Cashing in a life insurance policy, for example, means the loss of such benefits in the future.
For some people, it’s probably a better idea to look for ways to cut expenses — as painful as it might be — instead of trying to earn more cash.