Your finances come down to more than just what you have sitting in a bank account or stored under your mattress for a rainy day. There’s value in the assets you own too. What most people don’t realize is how far their assets actually go. When you’re struck by a sudden financial emergency, or you find yourself needing to track down extra sources of cash as quickly as possible, it’s worth taking a look at your assets on a deeper level. Examining the value of all the things you have and use on a daily basis may give you an insight into where you can save some extra money. Here are the areas you need to consider when you’re looking to convert assets into quick cash.
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Large Physical Assets
Your large, physical assets are the big items you own or hold a specific share of equity in. For instance, you might not own your entire home if you’re still paying off a mortgage. However, if you’ve paid around 40% of what you owe, you might be able to re-mortgage and get some extra cashback into 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 you might be responsible for.
Intangible assets are a little more complex and much easier to overlook when you’re searching for an extra source of cash. An intangible asset, for instance, might include something like a life insurance policy. If you have a life insurance policy that allows for a life settlement, you can essentially sell the policy you’ve built so far for a cash sum. Even without a financial emergency or sudden expense to worry about, many people still end up taking a life settlement because they want to access extra cash or start a new life insurance policy elsewhere. It’s something you might want to look into yourself by checking out a guide on everything you need to know about selling your life insurance company through a life settlement.
Smaller Physical Assets
Smaller physical assets are the items you might have in storage, or in your home which have significant value. Depending on how much cash you need straight away, selling things like a television, games console, guitar, or even a diamond ring can give you the extra cash you need. Your smaller physical assets are generally the things you can live without, even if you’d rather not. Usually, these are the resources you’ll sell when you need a small amount of extra cash. You can often sell smaller physical assets on sites like eBay and Facebook marketplace, or you could consider taking them to a buyer of used items. If you go this route, just be cautious to stay ahead of mobile money fraudsters so you do not leave yourself open to online predators.
Other Often Forgotten Assets
When you’re considering all of your options for converting assets into actual cash, you can always look into other forgotten assets too. For instance, if you ever invested in a friend’s business, you could always consider asking them whether you can sell your shares. Another option could be to look into whether you can make some money out of your retirement funds a little early. Although not all retirement accounts will give you the option to withdraw money early, there will be some options to access extra cash depending on your situation.
You should make sure you’re aware of any tax requirements you’ll need to deal with when you’re looking into this source of cash, however. Next time you’re panicking about not having access to the money you need it might be worth looking into whether there are any additional assets you may have overlooked. The things in your life worth the most money might not always be immediately evident to you when you’re struggling with the search for funds.