Our last $100 giveaway just wrapped up so it’s time for another one! The prize is $100 cash through Paypal or Amazon gift card (winner’s choice). The theme for this giveaway is a difficult one – When there isn’t enough money at the end of the month.
Let’s face it: most young adults don’t have a lot of money in the bank. The edge that young adults have is their future earnings potential and the fact that they have a long period of time before they hit retirement. Those in their 20s and 30s face different challenges than those in their 40s and 50s. They likely haven’t reached their peak earnings potential, and oftentimes they have a lot of debt whether it’s in the form of student loans, credit cards, mortgages, car loans, or otherwise.
One thing I have noticed about my peers in their 20s is that they generally are willing to work hard and desire things like a home, a decent car, and a family that is provided for. The problem is that my generation has more student debt than any generation before us. If you start with a relatively large student loan payment, tack on rent or a mortgage, health insurance premiums, auto expenses and insurance, cell phone bill, etc. there is a high level of fixed expenses each month right out of the gate. There is little room for error in most cases.
But what about those expenses that come once in a while…and usually are unexpected?
What if you own a home and your furnace breaks? What if you have an unexpected surgery and are faced with a $3,000 bill (and that’s a kind of bill you can expect even if you already have insurance)? What if your car breaks down and requires a $2,000 fix?
While these are not fun situations to be in, the reality is that young adults as a whole have a cash and cash flow problem. Many are just starting their careers or trying to find a job in their field. Others are still trying to figure out what they want to do with their life. Sometimes there simply is not enough money at the end of the month to cover all the monthly bills, life expenses, and unexpected bills.
What can you do?
If you have something that you can live without, try selling it. Whether it’s an Xbox or some stuff that’s been sitting in your or your parent’s basement for years, see how much you can make selling those things.
Appeal to Friends and Family
If the situation is dire enough, you can always appeal to your parents, siblings, and others for a short-term loan. Obviously an important point here is to make sure you pay them back asap! I would say paying back friends and family that lend you money should be your top priority; more so than credit card debt or anything else.
Appeal to student loan companies
I know some people who have worked out a plan with the companies/institutions that own their student loan debt so that their monthly expenses are only a certain percentage of income. I have not looked into this personally, but it sounds like a win-win. Especially if you are in a tight spot, making a call to try to work out a deal can be a good idea. One example would be only paying interest this month and having an additional month tacked on.
Check out Active Hours
Active Hours is the sponsor of this giveaway. They are similar to PayDay loans but charge no fees or interest. They operate off of donations or “tips.” They are a startup and relatively new. I would not recommend PayDay loans to anyone, but I think that Active Hours may be a good option if you are really in a bind.
Please note: I did not receive compensation from Active Hours, though they are the sponsor of the giveaway. I was not required to mention them in the post, but I did because I really do believe their services could be a good option for someone who is in a tough spot.
There are other solutions such as working odd jobs for someone and getting the cash immediately, or other side sources of income like babysitting, taking on shifts at a restaurant, and otherwise. Ultimately though, the goal is to get cash quickly and make up the difference so that you can move forward and not be stressed out about not paying your bills.
Make a plan going forward.
Once you fix your cash flow problem this month, start doing some of the things that will set you up for success going forward:
Track Your Spending – see if there is anything you are paying for that you could live without
Create a Budget – compare your results month-over-month
Pursue Side Income – my favorite way to deal with high expenses
Obviously it’s not fun to have to deal with not having enough money, but there is hope! Especially if you are a young adult – you have your entire life ahead of you and many years to plan and work yourself into a better financial situation.
Who’s ready to win $100??? If you want to enter the $100 giveaway, the rafflecopter widget is below. Best of luck!