One of the great challenges of becoming an adult has to do with handling money. Life’s a game, and finances, budget and savings are all a part of that. How to save, what to spend on, and how to make and maintain a budget are all important parts of becoming a self-sufficient adult.
Life really is a game and one of the goal posts is “Getting to the end of the month before getting to the end of your money!”
If you are using your credit card, or going into overdraft, or piling on your line of credit and not paying off your bills every month, you are losing this game. This problem is easy to diagnose. You are spending more every month than you make. And you can’t keep doing that!
If you buy your lunch at a restaurant or cafeteria everyday and have two trips to Starbucks a day, but can’t pay your phone bill every month, somethings wrong. You simply can’t ignore the math.
All that being said, sometimes unexpected expenses and situations arise. If you have a dental emergency, or a major car repair or a job loss you can get caught off guard. We would all love to have a huge emergency fund set aside, but in reality, the bill will be bigger than whatever you’ve planned for.
So how do you get over these financial speed bumps?
You can use a cash advance on your credit card. However, the interest rates can be really high. And, if you have a balance on that card you will have to eliminate the balance completely before the interest stops. It’s just not a good idea to take a cash advance of a credit card that has an already high balance.
You can ask friends and family. Beware that not paying the loan back very, very quickly can do more damage than just your credit score or finances. Most family disputes (including the ones where people don’t speak to each other for years) are over money issues. Beware!
Payday and cash advance loans. There are places you can get a short term loan very quickly. These can be better than having a creditor report you to the credit bureau, or have your bank slap some bounced check or bank fees on you. If you are smart about it a payday loan can help you get to past the beginning on next month.
Are we suggesting you get a payday or cash advance paycheck loan every month?
Of course not! However there are times when applying and getting an online short term loan quickly can save your credit rating, save you interest and penalties and reduce your stress.
If you do apply and receive a pay day loan make sure you make it a priority to pay it off on time. It will take the high penalty charges off you plate. And, you’ll be in a position to get another loan quickly if you ever need to.
Here are some tips to help you restructure things next month so you con’t have a cash flow problem again:
– make a budget and stick to it
– figure out your fixed expenses and don’t spend that money
– create a budget for yourfood (groceries) and stick to it
– put something into a short and long term savings plan
– try to save one months salary in an emergency fund.
If you make a budget and can’t make the numbers work, get another source of income, or change your situation to spend less. There really are no other alternatives.
There is nothing wrong with using an online payday loan to get you over a short term problem. What you must avoid is getting trapped in a online loan cycle. This happens quite often. Someone takes out a payday loan to get through the month because of a one time event. The next month they are struggling with their finances and they end up applying for another online loan to pay off the first one. And on, and on, and on. Eventually the intersest and penalties dig them a hole so deep that can’t ever earn their way out.
Don’t fall for that trap.
A payday loan should be used to get you over a singular event. If it becomes a regular thing you need to change your finances drastically.
Applying for an online loan should be a wake up call that you are walking close to the edge. Time to sit down and make a budget and financial plan.
If you do appy online for some short term financing here’s some thing to keep in mind. Make sure you get to see the terms and conditions before accepting the loan. And use a website that acts like a currator. Some online cash advance websites will take your application and send it to a network of lenders. Based on your credit, situation, work history and other things the lenders will offer their terms. This way you are sure you are getting offered the best deal, not just one offer from one lender.
If you want more of the finer things in life you either have to save more, or earn more. Unless, of course, you are waiting for the lottery of a huge inheritance.
You don’t have to be rich to be happy! If you want to work less, earn less and enjoy other things life has to offer, that’s a great choice.
However, if you want to live a lavish lifestyle you will need an income to support that. Online loans can help you over a short term cash crunch.
Just be aware that you are starting to ‘run with scissors’ financially.