Many Australians were affected by the great pandemic reset of 2020 to 2022. Companies closed, while some laid off their employees to save their businesses. Employees who lost their jobs struggled to put food on their tables and pay their bills. Working from home became the norm for others. Some had to change careers or livelihoods just to adapt to these cruel changes.
The Australian economy was also severely marred by the effects of Covid. The government confirmed a total of 158 million in financial losses from the GDP or Gross Domestic Product. That GDP cumulative amount is from Expenditure, Production, and Income, all based on GDP national measures.
While the country is now quickly recovering from these losses, many Australians still experience being financially short. It’s not only because of the far-reaching effects of the pandemic but also from daily struggles to balance their budgets.
How will you address these budget holes? You have two options: generate money, or get it through a loan. Both have their advantages in exchange for your time or possessions. Whatever works for you, there will always be a compromise.
Ways to Get Supplementary Cash
You can generate money to cover emergencies or important expenditures by selling, getting extra work, or converting assets into cash. Each of these methods presents its challenges.
Selling your possessions is the easiest method where you only stand to lose personal items and some of your time. Your answer might be somewhere in your house, your collections, or other possessions you can dispose of. You can also sell non-essential items to lessen your material losses.
You can also sacrifice-sale some of your valuable possessions and assets to meet emergency cash needs. Depending on their value, you can get bigger returns and a faster time frame to raise enough cash that you need. In exchange for these, is the risk of never being able to replace these possessions, or spending more money in the future in case you decide to replace them.
Your assets may have a bigger value and can also help raise funds to cover your financial deficiencies. Cars, real estate, expensive equipment, art, rare collections, and antiques are some of the higher-valued items you can sell. They will fetch bigger cash, in exchange for losing something major. It may be a necessary sacrifice to answer your financial needs. You may also need extra time to sell it on the market unless there are ready buyers.
Business Ideas to Generate Cash
You can start a small business that can yield more money, but this is also a risky proposition. Yes, a small business can take off the ground and pay for your financial shortcomings. It could also crash and burn, leaving you in deeper debt and back to square one.
If you’re planning to make money off of sales, it has to be a low-risk and high-yield endeavour. For example, you can sell downloads of your written work or ebook, or offer certain products or services. There has to be local demand for your items or services. However, like all businesses, you are treading on dangerous ground if you don’t have enough experience and insight into that particular business.
Selling your time and skills is another alternative option with lower risks. Your time and energy are also equal to cash.
An Extra Job, or Two
Getting an extra source of income from work may cut out a big chunk of your time, but the return can also be substantial. You can adjust for a while If it’s a part-time job and it’s temporary. However, you are also selling off your time and energy here. This can also lead to compromise for your main job or other personal activities and can cause issues.
Another option for you is to get another work-from-home job. This can somehow eliminate wasting extra time and add some convenience. You get to save time and money and avoid traffic and being outside. Getting on LinkedIn and applying for that 5-hour-a-day part-time or freelancer gig can earn you enough cash to balance your budget. Your compromise here involves proper time management and extra focus. But you would have to make sure you have enough time to rest and sleep to address your other main activities.
What are My Other Financing Options?
Financial help from friends and relatives can help alleviate some of your expenses and budget constraints. The problem with this option is that not everyone wants to ask for help. Many Australians prefer to resolve their financial problems on their own.
If your options are exhausted, the logical option is to borrow money. You can borrow from banks and lenders, but take note that they also carry major risks. You need cash and commitment in paying off the loan.
Getting a personal loan can be difficult if you have a low credit score, a history of non-payment, missed payments, or late payments. Those who went bankrupt before can receive discrimination and rejection from loan companies, even if they can afford to pay off the loan. The good news is, many lenders offer non-conventional loan offerings for these types of lenders, albeit with possible added fees, higher interest rates, and different loan terms.
Australians now have many options for borrowing cash. Banks offer standard personal loans that are not secured, and you don’t have to use any of your possessions as collateral. Many non-corporate, independent lenders accept applications from high-risk borrowers too. In addition to these, there are other alternative loan options, such as crypto loans. There are also fast payday loans with manageable terms and easy requirements.
If you plan to take out a loan, research and choose thoroughly before applying for the loan. High-risk borrowers may need more effort and documentation before they get that elusive approval. You also have to take note of all the terms and fine print. You need to discuss these first with your lender before you commit. You can ask them to present the complete terms and conditions so you know of any hidden fees or shady terms.
