Financial Freedom in Your Twenties: Tips for Covering an Unexpected Expense

canstockphoto1730072Whether you are in college or have just graduated, chances are you do not have a lot of cash on hand. When you face a sudden expense, having no cash on hand can feel rough.

You may feel panicked at how you will make ends meet, but the best way to react is to stay calm and think about possible ways in which you can earn money.

Making list of 25 ways to make money off of the top of your head can help you enter into a more relaxed state of mind. Even if your list contains some ideas that seem ridiculous or impossible, this type of exercise will begin to jog your mind for ways to create wealth and meet the expense that you face.

If your car needs a repair or you face medical bills, here are some ways that you can prepare to cover an unexpected expense.

1. Calculate the exact amount you owe.

First, you should try to figure out exactly how much money you owe. You should ask a mechanic what the exact amount for a repair will be. Whatever the expense is, it is important that you have an idea of how much you will need to pay to resolve the debt. Having an exact figure in your mind can also help you to feel motivated to work hard to obtain that sum of money.

2. Figure out how much time you have before you need to pay the money.

You should also know how much time you have before the money is due. If you figure out that you owe taxes for the year, then you will at least know that you have until April 15 to pay the expense. If you know the time period in which you must obtain the funds needed, you will be able to determine how much time you should dedicate to earning the funds. You may only have a limited period of time to earn a few hundred dollars and find that you need to accept overtime shifts at your job. If you need a car repair, then you may be able to work out a payment plan or extended payment date with the mechanic.

3. Sell some of your old belongings.

Selling some of your old items can be an easy way to come up with extra cash. Perhaps you have some old designer jewelry that you never wear and that can be sold to a thrift shop. Maybe you have some old designer handbags that you will never use. Selling some of these items is a great way for you to move forward in your life and get the funds that you need to pay for your unexpected expense.

4. Search for “mini tasks” that you can do for money in the neighborhood. 

There are now many websites on the Internet that feature postings for “mini tasks” that people want completed. Whether you go grocery shopping or walk someone’s dogs, these could be a couple of easy ways in which you begin earning the income that you need.

5. Take on an extra job.

Taking an extra part-time job can also be an easy way to supplement your current income. Whether you become a server or bagger, at least you know that you will have an extra stream of income that is consistent.

When you have an unexpected expense, the best thing that you can do is to start planning for ways to attack the problem. Being proactive in handling the expense can help you move on in your life and show you the importance of building a savings.

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