by Dexter Damien Chan

Created on: February 16, 2010

Nobody plans for Financial Trouble but there are at times such a scenario may happen. But rather than coming up with a solution at the point of happening, you should have started planning for it.

And the below are my 9.5 suggestions (3 methods to start planning for now and 6.5 methods that can help you if you are in need of a solution soon...)

The Special Emergency Funds

To start preparing yourself in this, I suggest to you to start two funds using the Principles of Starting Early and Paying Yourself First (at least 10% to 20%) and if you are using 10% you can further split this percentage into like 2% and 8%. 

The 8% can go into a bank savings account. The 2% can go to a special account like Money-Market instruments. The latter will help you to earn attractive interest (though not comparable to stocks)

So when there's a urgent need to raise cash, the 8% account can be used first and till the last resort, you can make use of the interest earned from the 2% account before actually utilizing it.

If you feel the pinch of paying yourself first, it's all in the mind. I have personally tried setting aside and carry on with my daily lifestyle, the impact is minimal.

Want to be more special? Make use of the interest earned from the 2% account and put a partial into equities/stocks.

Investing In Stocks

My suggestion to you will be to Invest early in yourself and get yourself some knowledge of buying good stocks.

Stocks that pay good dividends and stocks that you can hold for long enough. If you implement the strategy above and this strategy, you can actually seeing the dividends going to our Special Emergency Fund and the interest earned going to the long-term stock investment. 

Side-Line Business vs Part-Time Job vs Selling Something

Finding a part-time job may not be that easy in reality. And at a tight situation, you may have to make do with a lower pay but still incurring transportation cost and daily expenses. Health may even suffer.

How about selling those stuff that you do not need? Garage Sale? eBay? Garage sale provided that you have lots to sell and that people are willing to buy at that instant. Same for eBay, it may take some time to set up professionally, for the response to come in and for the transactions.

So why not start your own side-line business early in your life. Managing an Online Business (e.g. Affiliate Marketing, eBay) is becoming easy and with so much good information available online, you can get started earlier. And the start-up

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