How creative financing can help you save money in a recession
No matter how much or how little money you have, you should spend it wisely.
You’re probably overwhelmed – like everyone else – by the number of people telling you that this is the kind of market that is hard on consumers but that it’s also the time to invest to see major returns in the future.
If you’re having a hard time stretching your budget to where it needs to be to help you survive then how are you supposed to find extra money to invest in your future?
Creative financing can help you do both and save money right now.
Let’s say that you need a car to get to your job every day. If you don’t have the cash saved up to buy a car, you’ll need to finance it. You may not have the money right now, but that doesn’t mean you don’t have the need.
Instead of going to a bank and begging them to give you money, you can work out a deal with the seller of a car directly. You get to determine your own interest rate, they make money and you get a car.
This gives you what you need at a rate you can afford, and money goes back into the pockets of people in your community instead of lining a bank vault.
Creative financing through peer-to-peer lending
Another example of creative financing is peer-to-peer lending. Instead of going through a traditional financial institution, you can connect with individuals willing to lend you the money you need.
With peer-to-peer lending, you can negotiate a lower interest rate compared to traditional lenders. This is because there are fewer overhead and middleman fees, so the lender is more willing to lend at a lower interest rate. Plus, you can often negotiate the terms of the loan, such as the repayment period and interest rate and balloon length, directly with the lender.
Creative financing through crowdfunding
Crowdfunding has become popular in recent years.
It allows individuals to raise money for a particular project by reaching out to a large number of people through online platforms.
You can use crowdfunding to raise money for almost any project.
In SubTo, we can turn to community members to create a pool of lenders for larger projects that allow investors to get projects done, and private lenders to make money with minimal effort.
By tapping into a large group of people who are interested in your cause, you can raise money quickly and with a little upfront cost. That’s the beauty of creative financing.
In times of economic downturn, creative financing can be particularly helpful in making the most of your resources.
By finding ways to save money and get what you need without relying on traditional financing, you can weather the storm and come out stronger on the other side. That’s what you can learn how to do in SubTo.