Does your household budget support your monthly finances or are you finding that sometimes there is just “too much month for your money”? Seeking the help of a payday loan for a little extra cash to get through the month is not a bad thing unless your budget doesn’t support paying it back. It can at times be difficult to manage your money, even with the help of a short-term loan. But when you understand how to handle your money and can maintain control of your financial budget, a few simple fixes may be all you need to get back on track and work towards a payday loan payoff.
The first thing to know about managing money is that it takes a budget. While the act of making a budget is not all that hard, some people don’t like to sit down and face the realities of how much money comes in and goes out of their finances each month. Once you can get a handle on how much you make and spend on a monthly basis, it will be a lot easier to payday off your payday loan as well as any other bills you have weighing you down. The first step in doing so is gathering the past three months worth of bank, credit card, and loan statements. This will help you determine how much you have spent over the past three months by adding up all of your costs and dividing that amount by three to get an average. Have you discovered that you are spending more than you make? It doesn’t seem possible but that’s what happens when you have to take out short-term loans, borrow from credit cards, or delay car payments because your cash flow is coming up short.
Once you have come to terms with how much you actually spend every month, create spending categories for all of your expenses. It’s always wise to have a “miscellaneous” category that allows for those periodic or unexpected expenses; perhaps a fast cash payday advance. Also, create a category for regular car maintenance, visits to the dentist or anything else that you do annually, semi-annually, or even tri-annually.
Next, determine the difference between the “wants” and “needs” in your spending. This is a tough one even for the best of budgets. A mortgage or rent, utilities, food and gas are all needs. Those are things you most likely cannot cut from your budget. Cable TV, fancy cell phones, and gourmet coffee every morning are, on the other hand, something that you should be able to live without. You may have to bite the bullet so to speak and cut some of those items from your spending. The money you save by foregoing certain items can help with a payday loan payoff or maybe even prevent the need to borrow in the first place.
Also, take a look at your credit card statements to determine what kind of strain using your credit cards has put on your budget. These handy plastic purchasing tools can come with a high price in the form of interest. In the long run you will end up paying a lot more for what you buy if you can’t pay off your balance every month. The sooner you pay off your credit cards, the sooner you will have more money in your budget every month. If anything, pay more than your minimum payment but remember that paying off your payday loan has to be a priority as well. If you can’t pay cash for an item, then you probably can’t afford it!
There are times when emergency costs come up. It’s best to put away some money every month in a savings account for these situations. If you have to take out a payday loan, be sure you can pay it back with your next paycheck and that your budget supports this kind of borrowing.