A payday loan is usually an expensive loan, and is often difficult to pay off. Payday loans should be considered emergency loans only, as you get instant access to a limited amount of cash. But its much better for you to avoid the need for this type of loan in the first place. You can do a number of things which will help you to avoid the need for this kind of loan.
First, its a good idea to honestly review your spending habits. How do they compare to your income? Do you spend more than you make? Do you spend almost everything you make? Are you able to save any money? Even if you have high limits on your credit cards, you dont want to spend more money than you are earning.
Next youll want to look at what youre spending you money on. Are you buying coffee every morning? You could probably make it yourself at home for pennies plus you wont have to tip the barista. If youre spending $5/day on coffee and buy coffee 22 days/month then you are spending $110/month on coffee!
Try to curb your impulse buying. Sometimes you feel like you want something, only to buy it and find youve changed your mind a few weeks later. Its called buyers remorse. Delay the purchase, if you still want it next week, buy it then, after youve allocated some of your resources towards that purchase. And then theres always the old adage when it doubt, do without.
If youre really strapped for cash, you might want to consider selling something you own on eBay, or at the local consignment shop. If you have a lot of things you can bear to part with, you might want to have a garage sale. Typically, you will probably get a better price for collectibles on eBay or at a consignment shop. Selling unwanted items not only frees up space in your home, but also can help to bring in some extra cash.
Consider using coupons. Restaurants and businesses often send coupons through the mail. Look through the value pack and your Sunday newspaper. Clip coupons for groceries. You can also find coupons for everything from plumbing repair, to haircuts, to half off dinner at a local restaurant. Dont feel embarrassed to use these coupons. It doesnt mean youre cheap or poor, it means youre a smart consumer. Why pay more for the same item?
Another way to cut your expenses is to review your home services. Is the basic cable package good enough, or do you really need all the movie channels? How about your cel phone ” do you need a monthly unlimited plan? Most people dont come close to using an unlimited plan and there are always cheaper options.
Do you really need to have the latest, greatest thing? Is your current cel phone good enough? Or do you need to buy a new one just because it came out in your favorite color? Consider the free phones when youre re-upping your cellular contract. Theres a lot of stuff to be had, and you probably cant afford everything. Its a matter of prioritizing what you want and saving up for it.
Take care of the things you own. Dont skip basic maintenance because youd rather buy a big screen TV. It will cost you more if your car ultimately breaks down. The same goes for your own basic medical care dont skip those annual visits to your doctor and dentist.
A fun experiment to try is to promise yourself to buy only staples for a month. By doing this, youll be able to see how much money you throw away on frivolous things. You may feel a little deprived at first, but after a short time, you will be able to weed out what you really want from want you think you need.
A very important habit to develop is the habit of saving. If you dont like the word saving, try thinking of it as paying yourself first. Make a plan to put a certain amount of money into your savings account each week. Keep this money separate from your other money. Dont pay bills from this account. Even if you put away as little as $5 or $10 a week, youre savings will add up over time. As a general rule of thumb, its a good idea to have saved up between 3 and 6 months salary in case of emergency.
Finally, be a smart consumer. If its really important to you to buy something thats fine, go ahead and save up for it, or buy it if you have the cash. But dont feel you need to buy the latest $110 jeans just because theyre in style. Buy what you can afford. Your financial health is more important than having stuff. Good spending and savings habits will keep you from needing a payday loan in the first place. And if you can avoid being in that situation, youre ahead of the game!
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