Borrowing from a 401k is a hard no. Taking out a loan is not an option. Asking for money from friends and family is the last stand....or is it? Maybe, just maybe, there is still a few more options you can have full control over; and it's closer than you think!
I know these changes will in no way address a possible larger monetary issue at hand, but hopefully it will free up some funds quickly, and without going into more debt.
Also, please visit your local government sites to see what other assistance may be financially available to you. Surprisingly there are many programs that may be of assistance to you during a financial hardship.
Here's the 5 quickest ways I freed up funds:
1. Cancel Subscription Services.
I used this time to cancel non-essential subscription services. I personally discovered that I had around 6 subscription services on auto pay/auto renew. Also, do not forget to review those phone app services. Is there something that you can cancel, or put on pause in this time frame?
2. Change your Cellphone Services.
My cellphone bill regularly was between $60-$80 per month. I cancelled mine, and transitioned month to month @ $40/mth. I also get an extra $5 credit for autopay. I also rarely used my data, so I lowered it to 15 gigs/monthly. As a result, my bill has dropped to $35 a month.
3. Review Electricity Usage.
How many things do you keep on, unnecessarily? Lamps? Hallway lights? Closet lights? How many things do you keep plugged in when not in use? Phone chargers? Printers? Coffee makers?
In lieu of hallway/closet lights staying on, or being used so often, maybe consider battery operated stick-up lights. Another consideration is to begin unplugging those non-essential items when they are not in use.
Also, adjusting your thermostat....really does help! I actually noticed a significant decrease in my bill when I adjusted mine from 74 to 83. I know it sounds like a lot to deal with, but it is surprising how cool our home still is. My spouse, who use to get upset if the thermostat was not at 74...now even raises it back to 83 if he sees it is lower than that number! Always do what is best for you and your family. 83 degrees is what is works for us currently :) Lastly, You can also check your local state/energy website to see if they offer financial hardship/payment plan/equal pay options.
4. Cut The Cable.
This would be a good time to review how much your cable bill is. Does it include internet service? I can tell you EVERY time we had cable and internet...our bill was ALWAYS going up, even when we were told the price was "fixed". Our bill at one point was almost $200 per month! And let me tell you....paying that price....did not improve the service!! We cut the cable, and increased our internet.
Our cost is now under $80 per month, and our internet connection is overall much better than it was when it was part of the cable package! Imagine that! Also, I am hearing that local government/city municipalities are assisting individuals with internet costs. I think it is income based, so make sure you double check....you may just qualify for free or almost free internet!
5. Review food expenses
Yes. Extra food expenses could be costing you as much as $250 to $300 extra per month!
A daily Starbucks tall specialty drink runs around $4. That's almost $30 per week if you decide to visit them 7 days a week. That's $120 per month, on just coffee! Now add a food item which average is around $5. Weekly, food and drink together is around $63. Monthly is $ 250. Don't forget the taxes...You just hit around $260-$270 per month minimum, just at Starbucks! Yearly that equates to around $3100-$3300! Wow!
Not going at all is a bit drastic, and frankly may pose to be difficult. However, by just cutting back and going 2 days per week rather than daily brings spending down to $18-$20 per week rather than $63 per week, a weekly savings of over $40!
So, get those bank statements, and see how many times you eat out. You may be surprised how much it is really costing you.