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Tips for Funding a Big Life Change

It’s time to change your life, but that’s easier said than done, especially if your savings are looking for a little anemic. Whether you want to go back to school, put a down payment on a house, set off on the round-the-world trip of your dreams, start a business or something else, the biggest obstacle you might be looking at is a lack of funding. Fortunately, that’s not the end of the story. There are plenty of ways to get the money that you don’t need that don’t involve having to work 80 or 90 hours a week. Depending on what you’re after, one or more of the solutions below might work for you.

Sell Your Life Insurance Policy

Many people do not realize that their life insurance policy might have value beyond what it could be worth to beneficiaries. While you won’t get as much from selling a policy as you may have originally planned to leave your beneficiaries, you can get more than you would for surrendering the policy. You can review a guide to selling a life insurance policy to get a better of understanding of your eligibility, what is involved in the process and whether this is the right choice for you.

Take Out a Loan

It can be hard to save money on a low income, and for some of the above endeavors, you might want to consider taking out a loan. If you’d like to pursue a degree, you may be able to get a mix of both government and private student loans. There are also loans and grants available for those who want to start a business. Be sure that you thoroughly review the terms that accompany any type of loan and that the interest rate will be manageable for you. A loan is not the right solution for every funding need, but for certain situations, it can be the best solution.

Crowdfunding

It’s unlikely that anyone is going to crowdfund you to put a down payment on a house, but if raising money means you’ll have something tangible to offer, this can be a terrific way to get the cash you need and get people excited about what you’re creating. Examples of endeavors that can be good for crowdfunding include developing an app, creating a graphic novel or book, or creating a product or service that supporters can benefit from. To crowdfund successfully, you can’t be shy about reaching out to people and marketing yourself enthusiastically. But if that is something you’re good at, this can be an excellent way to raise the money that you need.

Sell Your Belongings

You may have more worth to sell than a life insurance policy. Some go all in on this as they sell off their house, the car, and most of their belongings to travel or take on another enormous life change. However, you don’t have to do anything this drastic to pick up some extra money. You certainly could look at downsizing your house or your car, but you might also be able to sell off collections or certain items, such as clothing, books, tools, and many other items. Increasingly, there are apps that can help you with this, or you can sell at an online marketplace. Offline, for clothes, there are consignment shops, and for books, there are used bookstores. Yard sales are still popular in many areas as well.

Family and Friends

Family and friends may be eager to help fund some of your endeavors. It’s not uncommon for older family members to help younger ones out with the money needed for a down payment on a home. Family and friends might be interested in investing in a business idea that you have. They might also offer you a loan for the life change you’re considering, but it’s important to be careful about mixing money and personal relationships. You may want to draw up a formal agreement in which you agree on a repayment schedule and whether or you not you will repay with interest to avoid misunderstandings later.

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