Tips to help you manage a cash crisis

Having a cash crisis? Below are 10 tips to help you survive and get back on your feet.

Of course, the number one thing to remember when you have a cash crisis is to stop spending!

I especially like the suggestion in the article for selling stuff you no longer need since that raises needed cash and it helps clear out clutter from your home. And personally, I think I would get a second job before moving back in with my parents.

Although it was not mentioned in the article, I also suggest going through your household budget with a fine tooth comb to see where you can cut costs including cable TV, magazine subscriptions, dining out, pricey cell phone service with tons of data, and any other unnecessary monthly expenses. During a cash crisis, it's also a good time to make as many meals as possible from the groceries you already have in your fridge, freezer and pantry. If there are any other ideas you have after reading the article below, please share them in the comments section.

by Bernardine Quesada

At one time or another, we are all faced with a crisis wherein we need cash quickly.

Depending on how desperate for cash you may find yourself, the list below explores a few ways to raise money in a short amount of time. Taking into consideration that there is no savings, here are a few more ideas to consider before starving or turning to a life of crime...

Look through everything you own and find things you no longer use but are still in good condition. Once you have all the items together, you can have a garage sale, if weather permits. Or, you may be able to sell certain items such as baby clothes to a second hand store, if the clothes are in good condition. Consider consigning some of your own clothes to a consignment store, but keep in mind that it can take from 60 to 90 days to get some cash in. You could also sell your stuff online on a site such as eBay, but again, it may take several days to get paid.

Previously relegated to back alleys and sleazy neighborhoods, the pawnshop is now considered a viable place to raise some quick cash. There is a pawn shop in West Los Angeles where some Beverly Hills residents drive up in their Mercedes or BMWs to pawn off fancy items for cash. One of the secretaries where I work regularly visits a pawn shop to raise some quick cash, or to even purchase gifts such as electronics and jewelry.

Everyone has jewelry or electronic equipment around the house that can be used to raise cash. The pawn shop operator appraises the item, and will loan a percentage of its value while giving the borrower a month or two to pay it back and get the item back. If you do not go back to pay off the loan, then you forfeit the item. But if you were not using the item anyway, then losing it would not be too painful.

The discomfort of borrowing money from a relative or friend can be eased by putting everything in writing. The best way to do it is by offering to pay interest on the cash, such as 5%. This rate is better than what they would get from a regular savings account at a bank, yet not as high as a credit card. This way, the loaner feels that he or she is getting something out of it while doing you a favor.

Outline the terms of the loan in the loan agreement, have both parties sign in front of a Notary. By all means, pay the loan back as soon as you can or risk losing your relationship.

Many utility companies require an initial deposit when you first set up an account, especially you have bad credit or no credit history. In any event, this money is yours after 12 months and you should call your utility company to reclaim the money. Although it's supposed to be automatically returned, the companies usually take a long time or possibly neglect to send it all together. I got $120 back a few years ago year after nagging the water utility company.

Check through your couch and you will find a lot of change. Go one step further and check through pockets of all your jackets, old purses and even old bags you have in your garage or attic. When I cleaned out my whole garage, I found a large stash of change I left in a bag with some photos--don't ask me how or why is got there, I truly don't remember! I also found $5 in the pocket of a jacket I no longer use. Every little bit helps!

Rent is one of your biggest expenses--why not share it with someone if you have the room. Or if you are truly desperate, move in with your parents or sibling for a few months until you get back on your feet. I realize this is one of the most difficult suggestions, but it is certainly doable if you really need the money.

Of course if you are moving in with someone you must be considerate and pitch in for chores etc, but that is a whole different subject.