How to convert your assets to cash quickly
Your finances aren’t all about what you have in a bank account or stored under your mattress for a rainy day. There is also value in the assets you own. What most people don’t realize is how far their assets actually go. When you are struck by a sudden financial emergency or need to find sources of additional money as quickly as possible, it is worth taking a closer look at your assets. Examining the value of everything you have and use on a daily basis can give you insight into where you can save extra money. Here are the areas you need to consider when looking to convert assets to cash quickly.
Large physical assets
Your large physical assets are the large objects that you own or in which you hold a specific share of net worth. For example, you might not own your whole house if you’re still paying off a mortgage. However, if you’ve paid around 40% of what you owe, you may be able to remortgage and get extra cash back in your bank account. Outside of your home, other larger physical assets can include things like cars and other vehicles, large or expensive electronics, and even areas of land for which you may be responsible.
Intangibles are a bit more complex and much easier to ignore when looking for an additional source of cash. An intangible asset, for example, might include something like a life insurance policy. If you have a life insurance policy that allows for a lifetime settlement, you can essentially sell the policy you’ve taken out so far for cash. Even without a financial emergency or sudden expense to worry about, many people still end up making a life settlement because they want to access additional cash or take out a new life insurance policy elsewhere. This is something you may want to take a look at yourself by looking at a guide to everything you need to know about selling your life insurance company through a life settlement.
Small physical assets
Smaller physical assets are items that you may have in inventory or in your home that are of significant value. Depending on how much cash you need immediately, selling things like a TV, game console, guitar, or even a diamond ring can give you the extra cash you need. Your smallest physical assets are usually the things you can live without, even if you’d rather not. These are usually the resources you sell when you need a little extra cash. You can often sell smaller physical assets on sites like eBay and Facebook Marketplace, or you can consider bringing them to a used items buyer. If you go this route, be careful and stay ahead of mobile money scammers so that you don’t leave yourself open to online predators.
Other assets often forgotten
When considering all of your options for converting assets to real money, you can always look at other forgotten assets as well. For example, if you’ve ever invested in a friend’s business, you can always consider asking them if you can sell your shares. Another option could be to determine if you can make money with your retirement fund a little earlier. While not all retirement accounts give you the option of withdrawing money earlier, there are some options for accessing additional cash depending on your situation.
However, you need to make sure that you are aware of all the tax requirements that you will face when looking for this source of money. The next time you panic about not having access to the cash you need, it might be worth checking out if there are any additional assets you may have overlooked. The things in your life that are worth the most money may not always be immediately obvious to you when struggling with fundraising.
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