No one can predict the future with 100% accuracy. That’s why it makes so much sense for parents to prepare for various contingencies, like unexpected medical bills, a long-term job layoff, a house fire, and higher than planned college expenses. What are the most efficient ways for those with children to bolster their financial situation? Besides crowdfunding and selling life insurance policies, they start side businesses, sell unwanted personal belongings, refinance mortgages, take out personal loans, and more. Here are some suggestions for families who need to cover the monetary shortfalls that life sometimes brings their way.
Using Crowdfunding Platforms
Crowdfunding is currently experiencing its second growth phase. The first wave of popularity took place in the late 2010s when individuals, companies, and families discovered that they could raise significant amounts of money by taking their cases to the public. Now, the organizations that operate the platforms have grown more sophisticated and are able to offer a wide range of tools to parents who wish to raise funds for special causes like medical bills not covered by insurance, a scholarship fund in memory of a deceased loved one, and more.
Selling Unwanted Life Insurance Policies
If you own a life insurance policy with a face value more than $100,000 and are older than 65, it’s possible to turn it into cash that can be used for any purpose whatsoever. Those at, or past retirement age, can check out policybank.com to find out all the pertinent facts about getting money in exchange for unneeded or unwanted policies they currently own. The logical first step of the process is to review a helpful online guide that shows how to sell a policy and reap instant financial rewards. Consider the fact that many aging adults no longer need life coverage when their children are grown or, for whatever reason, they decide they don’t want to pay monthly premiums to the insurance company. Note that once a person sells a policy, they not only get a cash payout but don’t have to make any more premium payments.
Holding Garage Sales & Selling Via Online Auctions
The age-old tradition of selling personal belongings to raise money is alive and well in the 2020s, only there are plenty of fresh variations on the theme. Online auctions make it much easier to get your items in front of millions of potential buyers. For larger items that are hard to ship, the old-fashioned garage or yard sale is the way to go. To maximize income from sales events, prepare carefully by categorizing all your goods into one of six categories: sell online, put in the trash, donate to charity, keep, send to recycling, or sell in a garage sale. For online sales items, take high-resolution photos and write short, accurate descriptions. Never post something without including a photo and keep receipts for all donated items for tax purposes.
Starting a Small Business
Consider starting an online company that resells goods or provides services directly to the public. There are hundreds of products to choose from, so be sure to select something that you’re interested in writing about and selling. Resellers don’t have to keep inventory, but they do need to advertise and drive sales for the main producer of the goods.
Taking Out Personal Loans
The short route to getting hold of the funds you need for a special project or purpose is a personal loan. Check several reliable online lenders to find the best rates and terms based on your credit rating. Check with your local bank and see if they can match or beat any offer you get. Some banks and credit unions want to keep your business in-house whenever possible.
Refinancing Mortgages and Car Loans
For generations, mothers and fathers have turned to renewing mortgages, or refinancing as it’s also called, as a reliable way to adjust their budgets. When renegotiating home or auto loans, it’s possible to reduce monthly payments by a substantial amount and end up with more favorable interest rates at the same time. However, not all mortgages are refi-friendly, so it might take you a bit of searching before you’re able to locate a lender who can offer a reasonable deal on a home loan refinancing package. Car loans are much simpler to redo, mainly because the dollar amounts tend to be much lower, and the life of the loans is much briefer.