A lot of people have their money tied up in investments and other things. Occasionally, life throws a wrench at you, so you wonder how to get emergency money quickly. In the same way, for others, occasionally something happens and they cannot wait until payday to get their cheque. They need money now.
This is a tough situation, but there are ways they can get their hands on money quickly, especially if it is an emergency. Let’s look at how to get emergency money fast, but also at some other ways that are fast, but perhaps a tad slower, if you can wait.
1. RRSP
You can take out money from your RRSP, although it is not recommended. However, in an emergency situation, reason and logic may be put on the back burner, which can be understandable. The reason it is not recommended is because you will be taxed on it.
There is the redeemable RRSP and the non-redeemable RRSP. While you cannot touch your non-redeemable RRSP, in reality, you can, but it is highly recommended that you never do this, unless you have a very, very good reason.
2. TFSA
If you have a Tax Free Savings Account, you can take out money from here. In fact, this is a good place to have an emergency fund in times like this. You also tend to get a slightly higher interest rate.
If you do take out money in case of an emergency, then try to put it back as soon as you can. This helps to reduce the loss of investment growth.
3. GICs
If you have Guaranteed Investment Certificates, then, in an emergency, it is preferred to use this instead of your RRSP. By taking out money from this, there is no increase in your taxable income. The only drawback is that you would have to forsake the earning potential.
4. Re-evaluate Budget
This is a slower way to get your hands on more money but it could also be a nice game changer for you. While it won’t give you money right away, by making changes to your budget out of necessity, you will find that you will have more money in the following months. This calls for sacrifices, but when you think about other methods, there are sacrifices too, except the money you need will be in your hand much quicker.
You could make changes like not eating out every day. If you eat out every day, you probably already know how expensive it is. Even a cup of coffee a day adds up. Why not bring your own food and coffee to work? You could reduce the amount you pay by about 75 percent! That is a huge difference.
Think of other things you do for entertainment. Do you really need to spend on certain things to that degree? Do you really need certain magazine subscriptions? Do you need to pay 3 phone bills? You could save hundreds of dollars every month with a few sacrifices. Sure, some sacrifices will hit you, but you may welcome other changes. In the end, you’ll have money in your hand, which is the main thing.
5. Getting Money Online
There are places online where you can get money quickly. You have to apply online and the funds could be in your account within hours. Make sure to use a reputable short-term financial service company, one that you have heard of or are familiar with.
Make sure that you only search trustworthy places. There are places with many locations in the country that allow you to apply online. These are safe, because you know it is a genuine financial institution with physical locations. Never apply to a place you find on the Internet where the website is called something like “Honest Joe’s Fast Cash”, with Honest Joe shaking hands with someone wearing a white doctor’s overcoat, smiling, on the front page. Do your research before you make such a move.
There are legitimate places where you can get money quickly, such as online payday loans from reputable providers. If you need cash now but cannot wait until you get paid in 2 weeks due to an unexpected emergency, this is a way to get money fast.
6. Borrow Against Your Home
Let’s say that you own your own home and built equity, you could borrow this equity either with a line of credit or as a loan. Equity is when you have either paid off a part of your mortgage or the value of your property has gone up while you have owned it. By taking out a home loan, you will immediately receive a lump sum of money.
As far as how to get emergency money is concerned, there are also other things you can do. For example, you could have a garage sale or you could sell some of your stuff online. Whatever option you take in the end (of all the above, or anything else), make sure you consider it as wisely as possible. You could incur additional debts, so make sure that you can handle these debts that may arise from an option you choose.