The global recession has left many people in dire financial straits. Working class people and families have found themselves struggling to make ends meet. But a new middle class has emerged who are cash poor but asset rich. And all around the world, people are looking for new ways to make their pennies stretch further.
It’s important to know how you can make whatever assets you have work for you. It doesn’t matter whether the asset in question is a Monet or a Mondeo – it’s how you use it that counts.
Monetising Your Assets
Monetising your assets may sound like a strange idea, but is actually easier said than done. Companies often pay people to advertise on their cars, particularly if you are a person who regularly drives on a busy commuter route. Your home can earn you extra money if you rent out one of your rooms to a lodger. And if you own any specialist computer or musical equipment, you could use these to teach in your spare time, or even hire them out.
Leveraging Your Assets
Assets can often be used to obtain credit, by leveraging them as collateral against a secured loan. This solution is a great idea for people who know that they will be able to pay off the loan, in full and on time. But secured and homeowner loans do come with risks; in serious cases of non-payment, your asset will become forfeit. And if a secured loan sounds too risky to you, there is another option.
Pawning Your Assets
Over the past 15 years, pawnbrokers have gained a respectable and trusted reputation as a valuable resource for asset rich individuals who need to raise money. Safer than securing your asset against a loan, and not as permanent as selling your asset outright, pawning is a popular choice for many individuals. To pawn an asset, simply go to a recommended pawnbrokers, such as H&T Pawnbrokers, and make an enquiry about how much your asset is worth.
Selling Your Assets
Track All Your Accounts With Personal CapitalPersonal Capital lets you see all of your accounts in one convenient place. Sign up now for free.
Selling an asset should only be considered as a last resort, but it’s important to remember that this option does exist. Homeowners in particular have found that they are able to improve their standard of living by selling their property and moving back into the rental market. Whilst not ideal, it’s all about planning for the future – a future which won’t be possible if you are unable to weather the storm of the recession.