5 Smart Ways to Raise Cash in a Flash
Need money now? It might not be as hard to earn as you think!
Strategies to Earn Money Quickly
Sooner or later it happens to the best of us: Your car breaks down. You get hit with a medical crisis. Your kid declares that he simply can’t live without an electric guitar for his birthday. At some point you are likely to be faced with a need to come up with extra funds, and fast. If that feels like a tall order, try these smart strategies to quickly put money in your hand--without landing you in hot water.
Strategy #1: Sell Your Stuff
Big items, like furniture or bikes, are easiest to peddle at an old-fashioned yard sale. For gadgets, clothes and books, you often can get the most online.
• Electronics: Try Usell.com. It aggregates offers from dozens of other websites, and it charges no fees to buyers or sellers. For a used iPhone 4, recent offers ranged from $100 to $140.
• Books/DVDs: Try Sellercentral.amazon.com. Yes, it takes a larger cut than other sites (99 cents per product plus 15 percent of the sale price), but its heavy traffic can help you find a buyer quickly.
• Gift cards: Try Cardpool.com. Which pays up to 92 percent of the value on cards from most major stores. Send in your card electronically and the site will mail you a check within one day.
• Kids clothes: Try Thredup.com. It will pay you up to 40 percent of the resale value of the item you’re selling. The site also covers the cost of shipping and sends you the mailing bag.
Did You Know You Could Sell These?
• Wine corks; empty paper towel and toilet paper rolls: Try Etsy and eBay. Such items are favorites of amateur crafters. You could get $20 for 200 wine corks or 50 toilet paper rolls. Etsy charges a 3.5 percent cut and a 20-cent listing fee. EBay takes 10 percent.
• Broken electronics: Try eBay and Craigslist. Handy buyers rewire and resell broken appliances. You could get $10 or more per item.
• Your hair: Try Hairclassifieds.com and buyandsellhair.com. You could get $200 to $500 for 10 inches or more of hair (if it’s not dyed or permed).
Strategy #2: Rent Your Stuff
Got a spare room in your house, extra space in your garage or valuable equipment such as a lawn mower? There’s a good chance someone will pay to borrow it.
• Your home: Try Airbnb.com and homeaway.com.
What you can make: About $60 per night for a private room in a house (minus a small commission or service fee for the site). You don’t have to live in a vacation hot spot; popular properties include those in small towns.
Be aware: You might need to charge less than Airbnb’s suggested rate until you build up a base of positive reviews.
What you can make: About $60 per night for a private room in a house (minus a small commission or service fee for the site). You don’t have to live in a vacation hot spot; popular properties include those in small towns.
Be aware: You might need to charge less than Airbnb’s suggested rate until you build up a base of positive reviews.
• Your car: Try relayrides.com.
What you can make: Up to $1,000 a month. Cities and college towns where not everyone owns a car are popular.
Be aware: Consult your insurance policy first; some policies prohibit renting and might not cover you in an accident.
What you can make: Up to $1,000 a month. Cities and college towns where not everyone owns a car are popular.
Be aware: Consult your insurance policy first; some policies prohibit renting and might not cover you in an accident.
• Anything else: Try Zilok.com,snapgoods.com and rentabilities.com.
What you can make: $15 to $25 per day for most items. Keep the season in mind (snowblower in winter, for example).
Be aware: The sites deduct a 5 percent to 7 percent commission on your profits.
What you can make: $15 to $25 per day for most items. Keep the season in mind (snowblower in winter, for example).
Be aware: The sites deduct a 5 percent to 7 percent commission on your profits.
Did you Know You Could Rent These?
• Wedding gown: $100 per day
• Stand mixer: $20 per day
• Xbox 360: $30 per day
• Lawn mower: $50 per day
• Sewing machine: $20 per day
• Stand mixer: $20 per day
• Xbox 360: $30 per day
• Lawn mower: $50 per day
• Sewing machine: $20 per day
Strategy #3: Get a Loan
Personal loans from banks used to be commonplace, but these days they’re not easy to nab. Fortunately, there are plenty of alternatives. Use our breakdown of options to figure out which source works best for your situation.
• Family
How long it takes: Usually one to two days for the check to clear.
Pros: You can create your own terms, but interest rates of about 1.65 percent might apply (check with an accountant about tax implications).
Cons: Not repaying can ruin your relationship with a family member.
Do it right: Get the terms in writing. See a sample note at legaldocs.com.
How long it takes: Usually one to two days for the check to clear.
Pros: You can create your own terms, but interest rates of about 1.65 percent might apply (check with an accountant about tax implications).
Cons: Not repaying can ruin your relationship with a family member.
Do it right: Get the terms in writing. See a sample note at legaldocs.com.
• Strangers
How long it takes: About a week.
Pros: Peer-to-peer lending sites lendingclub.com and prosper.com let you borrow from strangers. Interest rates average about 13 percent for a three-year loan.
Cons: You need a great credit score (750+) for the best rates.
Do it right: Have some recent pay stubs to fax to verify your income.
How long it takes: About a week.
Pros: Peer-to-peer lending sites lendingclub.com and prosper.com let you borrow from strangers. Interest rates average about 13 percent for a three-year loan.
Cons: You need a great credit score (750+) for the best rates.
Do it right: Have some recent pay stubs to fax to verify your income.
• Your 401(k)/IRA
How long it takes: As little as a few days.
Pros: It’s your money! And interest rates are low, about 5 percent.
Cons: You might have to pay back the loan within a certain time or face penalties.
Do it right: Don’t take a loan if you have any reason to think you might leave your job; if you do, you might have to pay the loan in as little as 60 days.
How long it takes: As little as a few days.
Pros: It’s your money! And interest rates are low, about 5 percent.
Cons: You might have to pay back the loan within a certain time or face penalties.
Do it right: Don’t take a loan if you have any reason to think you might leave your job; if you do, you might have to pay the loan in as little as 60 days.
• Your home
How long it takes: A week to a month.
Pros: With a home-equity line of credit, you borrow money with interest rates of about 5 percent.
Cons: Banks require a credit score of 660 to 680 and might foreclose on your home if you don’t pay them back.
Do it right: Shop around to find a good deal at bankrate.com.
How long it takes: A week to a month.
Pros: With a home-equity line of credit, you borrow money with interest rates of about 5 percent.
Cons: Banks require a credit score of 660 to 680 and might foreclose on your home if you don’t pay them back.
Do it right: Shop around to find a good deal at bankrate.com.
Strategy #4: Hire Yourself Out
These days, many websites quickly match temporary workers to odd jobs. Below are some of the highest-paying positions that require little or no experience.
• Baby sitter
Payoff: $10 to $25 an hour.
Get hired: Fill out a profile on sittercity.com or care.com.
Payoff: $10 to $25 an hour.
Get hired: Fill out a profile on sittercity.com or care.com.
• Virtual assistant
Payoff: $10 to $25 per hour, depending on the task.
Get hired: Taskrabbit.com.
Payoff: $10 to $25 per hour, depending on the task.
Get hired: Taskrabbit.com.
• Dog walker/pet sitter
Payoff: Walking: $10 to $15 an hour; sitting: $25 to $50 per day.
Get hired: Rover.com.
Payoff: Walking: $10 to $15 an hour; sitting: $25 to $50 per day.
Get hired: Rover.com.
• Research-study participant
Payoff: $25 to $100 or more per study.
Get hired: Check the websites of universities near you.
Payoff: $25 to $100 or more per study.
Get hired: Check the websites of universities near you.
Strategy #5: Tap Your Assets
It might be difficult or costly to liquidate certain investments, but other sources can be surprisingly easy to crack without adverse consequences.
• Liquidate your life insurance policy: If you have been paying premiums for at least five years on a whole (or permanent) life insurance policy, you can tap the cash value (the portion that has been funded by your premiums). Just be sure to replace the insurance with a more inexpensive term life policy so you don’t leave yourself with too little coverage.
• Cash in a CD early: Yes, the idea of a certificate of deposit is to lock up your cash, but in reality you don’t lose much by withdrawing ahead of the maturity date. Although you’re typically penalized about six months of interest for tapping the funds, the recent rate on a five-year CD was only about 1.5 percent. That means you’d forfeit only $75 on an early withdrawal of a $10,000 CD.
• Return items you aren’t using: Those sweaters you got at Christmas still sitting unworn in the closet? Kohl’s and L.L. Bean are famous for taking back any item, anytime—and those are just two of many big stores that do, so don’t hesitate to ask. An increasing number of retailers also keep electronic receipts, so you can return items even if you’ve lost the paper copy.
Don’t do This!
These four methods almost never make sense as fast-cash strategies.
• Pawning your stuff: You’d sell your items for less than half of what you could get for them on eBay or another auction site.
• Emptying out your 401(k): As if jeopardizing your retirement savings weren’t enough of a disincentive, you’d likely pay stiff penalties too: 10 percent plus state and U.S. taxes on contributions and earnings, depending on your age.
• Getting a credit card cash advance: You’d get whacked with 2 percent to 5 percent fees, and interest rates of nearly 20 percent might begin to accrue immediately.
• Signing up for a payday loan: Beware websites that promise a quick short-term cash advance. Most will burn you with interest rates upwards of 300 percent.
Choose the TOP Forex Brokers Right Now.
Start Your Forex Trading Journey!
No comments:
Post a Comment