Sources To Procure Emergency Funds In The Absence Of An Emergency Fund

Emergency Cash Loans

Emergency funds are set up to provide people with the requisite financial aid during a critical situation.  However, many times an emergency might strike, when people have still not set up an emergency fund or are in the early stages of establishing the same. In some instances, the fund might not be enough to cover the expenses of a particular emergency. When faced with such situations, most people seem to be at a loss to arrange the requisite amounts in a timely manner. Availing emergency cash funds is the most common option for people seeking a way to get out of the financial mess. In addition, there are other sources that such individuals can turn to for obtaining the funds to cover an emergency. These sources are discussed as follows:

1. Revise – The Monthly Budget

One of the easiest and convenient sources of getting the money in time is from the monthly budget. This will definitely require the individuals to make major adjustments in their everyday expenses. It might also put them through a phase of considerable discomfort for several days. However, this method might prove to be the preferred option for people with limited loan repayment capacity. In fact, procuring money in this way can help them avoid the addition financial burden of EMIs.

2. Sale – Household Stuff

There are several household items that can bring in good money on sale through proper channels in times of emergencies. The best thing is that the absence of a majority of these items will not make any major difference to lifestyle of the individuals. By putting these items up for sale on websites such as Craigslist, ebay or even social media groups, people can raise enough money to stride over an emergency situation. On the lighter side, the sale of these items will create an opportunity to purchase new products in accordance with the latest trends.

3. Advanced Salary

Individuals seeking funds to see them through an emergency situation can also turn to their employers for help. Depending on their organization and their duration of work, they can either ask for an advance on their salary or even seek an emergency cash loans at 0% interest. While the former option may be acceptable to all organizations and employers, the latter option is generally offered only by small businesses to their oldest employees. However, some medium and large business organizations might have other policies in place to help employees facing a financially critical situation.

4. Borrow Money – From Friend or Relative

Even though this is often the least preferred method of overcoming the financial stress during an emergency, borrowing from a friend or a relative is another option. They key to preventing the deal from wreaking havoc on even the strongest relations, is for the individuals borrowing the money to treat it like a business transaction. In fact it is highly advisable for both the borrower and the lender to do the deal in a proper legal manner to avoid any unnecessary confrontations and misunderstandings, which can ruin their good relations. The legal document can act as a silent assurance and a reminder for the lenders and borrowers.

5. Emergency Overdraft – From The Bank

It is possible for an individual to seek an emergency overdraft on their salary account within a few days of their pay. However, the overdraft amount offered is not more than the usual payday deposit of the individuals. Despite that, the amount might be enough to see them through their difficult times. All the individuals need to do is to explain the situation to the bank and request them to offer an overdraft for the amount they might need. It is also important for the individuals to seek information about the overdraft fees they need to pay to the bank, which in most cases is quite reasonable.

6. Take Loan – On Savings

Even though taking small short term loans on savings and retirement funds is not recommended, it might be justified in some emergency situations. Many financial institutions offer a loan against the collateral of savings and retirement funds at relatively easier terms. However, there is generally a maximum limit to the amount of loan that can be allocated in lieu of these collaterals. Moreover, repaying these loans along with the associated interest is mandatory by law. This means that the individuals do not actually suffer a loss on their savings or retirement fund while also being able to overcome a financial crisis in as successful manner. This is generally a better option than taking out a loan as it actually helps people to make use of their savings without spending a single penny from the same.


It is important for people to understand that emergency situations do not come after proper announcement. However, with little planning, discipline and flexibility, it is possible to overcome the financial stress during such times without actually disturbing their life savings in a significant manner.