When an emergency occurs, it often requires very high costs, for example a car accident, unexpected medical needs, to a disaster that befalls you and your family.
If you haven’t built an emergency fund, then going into debt can be an option to pay for the emergency.
Before doing the method above, you should consider the 5 ways below to prevent an emergency without needing to owe.
5 Ways to Prevent Emergencies That Get You Indebted
Asking Friends or Family for Help
Asking someone close to you for financial assistance can be a serious relationship wrecker.
This is why many people prefer to go into debt rather than asking friends and family for help.
When you want to do this method, then you need to have deep conversations with family or friends.
Let them know that you won’t resent them when they don’t provide the help you need.
The important thing to do is that you need to treat it like a financial transaction and use clear letters between the two parties.
The agreement contains payment dates and other loan details.
Selling Or Pawning Something
When an emergency occurs, you can sell items that are useless or rarely used.
There are lots of parties who are willing to buy used goods from you.
However, if you need money right away, then bring your valuables to the pawnshop.
Pawnshops will accept items of value for mortgage and allow you to get money to cover emergencies.
Cut Your Spending
Begin evaluating how much money is needed for food, utilities, transportation, and so on.
It’s possible that you’ll find enough savings to be made to cover an emergency.
Lowering your lifestyle temporarily to prevent an emergency is better than going into debt with someone else.
Currently in Nigeria there are several websites that offer opportunities to raise funds online .
There you can explain who you are and what are the reasons that make you need funds.
Parties whose hearts are moved will provide assistance and donations to those of you who are experiencing financial problems.
Renting Something For Money
Take a look at what you currently have, and chances are you’ll find something that someone else needs.
For example, if you live near a tourist spot, you can rent rooms to tourists who come to get rental income.
Doing the 5 ways above is very effective in preventing emergencies and avoiding yourself from debt.
Choose an alternative method that you think is best for now.
Don’t Let The Above Happen Again
The next step is that you need to evaluate financial decisions so that they are better in the future.
Start saving to prepare for and prevent emergencies, so you don’t have to go into debt when an emergency occurs.
Not only that, you also need to start preparing for future financial needs now.
The best way to prepare for future needs is to invest.