5 Strategies for Covering Urgent Expenses

The truth is that although not all urgent expenses are unexpected, they often are. You never know when you might need to take care of urgent home or car repairs, when you might lose your job, or when someone in your family might get severely ill or injured. Or what if you found yourself in a situation where you had to cover heavy legal fees?

Remember that you never know when you might need to cover urgent expenses. They can occur anytime, and the best thing you can do to be prepared is to save money for an emergency fund. You also need to know where and how to get help next time you must pay urgent expenses. This will allow you to react quickly and avoid getting into debt.

So, how can you be financially prepared to face such unexpected expenses? You can try one or a few of these five strategies for covering urgent expenses.

Build an emergency fund to be ready for urgent situations

Building an emergency fund is to face urgent expenses without worry. If you’re living paycheck to paycheck, you might feel like you’ll never be able to save enough money to help you cover unexpected expenses. But the truth is that it’s even more critical, in your situation, to rely on an emergency fund. Think of it as a financial safety net that will support you whenever times get rough.

Set aside a small amount each month to start building your emergency fund. Keep this money in an easily accessible savings account. Set up monthly automatic transfers so you don’t have to think about saving money. Over time, your savings will add up and help you cover urgent expenses whenever they occur.

Take a close look at your budget and categorize your expenses

When you have a financial emergency, taking a moment to assess your situation is important. Start by reviewing your monthly budget and categorizing your expenses. Essential expenses cover your basic needs, such as food, shelter, and utilities.

Look at your other expenses and decide whether they are essential or non-essential. When you’re done categorizing your expenses, find ways to cut back on non-essential ones. Keep in mind that the sacrifices you make will only be temporary.

You can even negotiate a payment plan with some of your service providers. All your efforts will help you free up some funds you can use to cover urgent expenses.

Get some cash quickly by taking on a loan

If you don’t have an emergency fund and can’t reduce your expenses any more than you already do, taking on a loan can be a good option to help you access some cash quickly. Payday loans, for example, allow you to receive money extremely quickly. However, before you apply for a payday loan, be sure you’ll be able to repay it when you fully get your next paycheck.

Your goal is to cover unexpected expenses, and it’s best if you can do that without getting into debt because of a high-interest loan you can’t repay. Whenever you think about borrowing money, be cautious and learn about the different terms of the loan before you take it out.

Sell unused items or find a side hustle

To get the money you need to cover an urgent expense, you might want to consider selling some items you don’t need anymore. Used books, handbags, electronics, clothing, and children’s toys could earn you money, whether you sell them online or host a garage sale. You could also make a lot of money by owning collectible items such as vintage toys, comics, and coins.

If you can’t think of anything you could sell, look for a side hustle that will help you earn some extra money. Or perhaps working a few extra hours at your current job could be enough to help you cover those unexpected expenses.

Research the community resources in your area

Your community could help you figure out additional strategies for covering urgent expenses. Local charities and nonprofit organizations in your area could help you deal with financial emergencies.

You could also benefit from emergency financial assistance programs designed to help ease your financial burdens while you deal with urgent expenses.

It’s best to research the resources available in your area in advance so you will know exactly where to find them when you need them the most.

Don’t hesitate to ask for help when you need it. You can be sure you’re not the only one going through a similar situation and that help is available. You only need to know where to look.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com