4 MORE Tips For Dealing With An Emergency Expense If You Have Zero Savings *Bonus Resource List*
You can watch my full YouTube video on this topic here!
If you’re finding yourself in a financial jam and wishing you had more money saved up for a rainy day, you’re not alone! According to Bankrate’s 2023 annual emergency savings report, just 48% of American adults reported having enough savings to cover 3 months of living expenses. From that same survey, 57% reported feeling “uncomfortable” with the amount of emergency savings they did have in the bank. And 22% of those surveyed reported having no savings at all, the second lowest number in 13 years of polling.
So are Americans worse at saving money than they used to be? Hardly. 74% of those surveyed blamed inflation, rising interest rates, and unemployment for their lack of (or insufficient amount of) emergency savings. We’ve been through bumpy economic times over the past 3 years, and while inflation is coming down we’re still seeing above-average prices everywhere from the housing market to the supermarket.
Here are 4 MORE things to do if you run into an emergency and don’t have any savings:
1. Ask about a payment plan or extension. If the emergency expense is a bill or medical expense, contact the company right away to discuss your situation. Many companies offer payment plans and extensions, allowing you to pay the bill over time if you can’t cover it all right now.
2. Consider selling some of your belongings. Evaluate if you have any items that you could sell to raise money to pay for the emergency expense. This could include jewelry and watches, designer accessories, furniture, tools, sports gear and workout equipment, musical instruments, and collectible items/antiques. If you’re selling jewelry or watches, get them appraised first so you don’t sell them for less than they’re worth. You can either list the items yourself on an online marketplace, or take them to a consignment shop. If you’re listing your items online yourself, make sure to only take reliable forms of payment such as Venmo, and keep your personal safety in mind when communicating with potential buyers.
3. Find out if you qualify for assistance from nonprofits and government agencies. Some organizations and government programs can provide emergency financial assistance to people in need, depending on the situation. These include charities like The Salvation Army and United Way, along with many other organizations (see links below). If you’re in the military, get in touch with your base Family Readiness Center to get more information about military-specific financial help.
4. Do some freelance work. Companies like Upwork, Freelancer, Uber, Favor Delivery, and DoorDash all let you take advantage of the gig economy and earn some extra money relatively quickly.
Government Financial Relief Programs
Temporary Assistance for Needy Families (TANF)
Federal Unemployment Insurance
Social Security Emergency Assistance
Non-Governmental Financial Relief Programs
Your local food banks, nonprofits, and charities!
Relief Organizations For Military Families & Veterans
Disabled American Veterans (DAV)