As you make your way through life, you have to work really hard to keep your finances in shape. Even with the wages from a full-time job, it can be a challenge to balance the monthly budget and make ends meet. Before you even put your paycheck in the bank, part of it disappears for taxes. From there, you have to take care of your rent or mortgage and the ever-rising costs of utilities.
Transportation costs and food expenses take another big bite out or your earnings, and soon you are left with little at the end of the month. With day-to-day expenses taking so much of a paycheck, we are often not in a great position financially. When something comes up suddenly or we find ourselves needing a significant amount of cash, it’s not going to be found in our meager savings accounts. In order to handle a big, unexpected expense you may have to rely on borrowing from friends or relatives if you can. Fortunately, you can also tap into some more creative avenues when you need to bring in money right now.
Selling Your Life Insurance Policy
If you find yourself suddenly facing extraordinary expenses due to a life-threatening or chronic illness, you may be able to sell your life insurance policy. Getting cash for your policy can really help reduce the financial stress at a time like that. With a viatical settlement, you can sell your life insurance policy to an investor who pays you a reduced death benefit in advance. Then, upon your passing, they receive the full benefits of the life insurance policy.
If you are interested in this option, it’s important to do your research so you know how the payout is determined. Your payout is based on two primary factors, the value of the death benefit of the policy and the policy holder’s life expectancy. In most cases, if you have a longer life expectancy you will receive less money for the settlement.
Tap into the Equity in Your Home
Another great way to get the funds you need is to pull from the equity in your home. If you own your own home you’ve likely been paying down the loan balance for a number of years. With the demands for homes these days, it’s also probable that your home and land has gone up in value.
You can leverage your decreased loan balance and the appreciation in value by refinancing or taking out a secondary loan. If you refinance you can pull cash out at the same time. At today’s lower rates, you may also be able to lower your monthly payment. With a secondary mortgage, you can tap into your equity and free up the cash you need for important purposes.
Use the Power of the Internet to Raise Funds
One of the most powerful aspects of the Internet is that it gives people the ability to get their message out to the world. In the past, if you had an idea for a great new product you’d often be stymied because you couldn’t get the investors or money you need get things going. Now, you can tap into the power of crowdfunding sites and raise all the cash you need to start your business and get your innovative product designed, developed and built. By creating a compelling pitch and leveraging the power of social media, you can get a viral buzz going. From there, you’ll be able to book advance orders for your new product and use that cash to fund your startup and product production.