The best ways to raise cash fast

By Liz Pulliam Weston

When you need money fast, the last thing you want is a lecture.

Yes, maybe you should have planned better, spent less, saved more. That's what the finger-waggers would say, anyway.

But you didn't, and here you are. What you do next, though, could determine whether this bind is a hiccup in your financial plans or the start of worse troubles.

Here's my list of the best ways to raise cash, in order, along with two methods you should avoid. (The list assumes that you don't have an emergency fund; if you did, that would be the first place you should turn to for quick cash.)

The best way to get your hands on some scratch is to:

Sell something

The hands-down best way to raise money is to convert stuff you already own into cash. You won't be obligating yourself to future payments, as you would be by borrowing money, and you don't have to invest a lot of time to reap the reward. Consider selling:

• Household possessions. You can list higher-value stuff on an auction site such as eBay, and bulky items that are expensive to ship, such as a car or treadmill, on Craigslist. Computers, cell phones, televisions and video game players may also be worth something, particularly if the items are only a year or two old. Otherwise, a yard sale could help you turn clutter into cash.

• Nonretirement investments. If you have stocks, mutual funds or other investments that are held in taxable (as opposed to retirement) accounts, consider selling them. First on your list should be any investment that's lost value since you bought it, since you won't be incurring taxes on the sale and you may be able to use the loss to offset other income. Talk to your tax pro for details.

• Heirlooms. You may steel yourself to part with Granny's jewelry or china, only to learn what appraisers already know: "old" doesn't necessarily equal "valuable." If you can't part with a couple of hundred bucks to hire an appraiser, you may want to take your items to more than one dealer or jeweler and compare offers.

A tip: If you're selling precious metals like gold or platinum for their scrap value, avoid the companies that advertise heavily. Their money is going to their ad budget, not to ensuring you get the highest price. Read "How to sell your old gold jewelry" for details.

Or you may want to:

Cash out

Like raiding your brokerage accounts, tapping other savings has financial consequences. The biggest one: You risk squandering money that you might need more in the future.

Still, these can be a ready source of cash in the right circumstances:

• Certificates of deposit. If you bust into a certificate of deposit early, you typically lose up to three months' worth of interest.

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• Whole life policies. Regular term insurance policies don't have any cash value, but so-called "whole life" policies have an investment component that typically builds up worth over time. If you have one of these policies and no longer need it -- because you don't have financial dependents, for example, or you have sufficient term insurance -- you may be able to extract that value by cashing out. If you still need the insurance, another option is to take out a loan against the policy. But if you don't pay the money back, you risk having the policy collapse, meaning you would lose your coverage.

The next best way to raise money is to:

Earn more

Asking for a raise is always worth a shot, but in this economy big boosts in pay are hard to come by, and smaller ones may not generate the quick cash you need. So consider:

• A second or third job. If your health and circumstances permit, taking on another job can really help you through a crunch. Employment that involves tips -- waiting tables, tending bar, parking cars -- will put money in your pocket the fastest. See "Need an odd job? Give blood, watch porn."

• A side business. Pick one with low startup costs, such as baby-sitting, dog walking, house sitting, poop scooping. If you have particular skills -- as a handyperson, say, or a tutor -- use those to generate cash. See "20 ways to earn an extra $100 a month."

Your next-best bet is to:

Hit up Mom and Dad

For this to be an option, your parents need to be able and willing to help out.

If your parents aren't both flush and generous, leave them alone. Hitting up folks who are already strapped is juvenile, selfish and cruel. Hitting up folks who aren't inclined to share just creates bad feelings.

Continued: Keeping the IRS happy

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