You may have already heard stories of people who get trapped in the bad credit payday loan industry. You may know individuals who are in the same situation. By this time, you may have decided to stay away from delving into the lending business. Learning from others’ mistakes is one good thing if you don’t want to suffer the way they did.
Analyzing how others get trapped in debts, you will have lots of questions that will start with ‘what if’. However, dwelling on what might have been will not solve their problems. Are you someone who hasn’t tried applying for a loan and still deciding if this is the right action to take? Are you someone who is lucky enough to pay off all your debts and would want to stay away from fast payday loans?
As we all know, small, short-termed cash advances can solve a consumer’s temporary immediate money needs. But if they are not responsible enough to handle financial issues, it could turn into a big problem in the future. I’ll share with you some of ideas I know that will surely help!
Save, save and save.
Early in life, our parents have taught us that to be successful; one must learn how to save. Let’s start with your very first paycheck. Don’t start spending your hard earned cash the day you receive your paycheck. By this time it’s commendable if you already have a budget list. Is your paycheck enough for your budget? Is it more than enough or do you have to cut your list to your basic needs? You may have bills that you have to pay, and then list your bills on top of the list. Remember, bills that are paid on time will prevent you from paying more. If you can, save at least 10% from your income. When all expenses have been deducted, then you will have to budget what’s left for your daily needs.
Create a personal emergency fund.
There will always be situations when you need cash instantly. You have to be always ready for it. It would be good if you can still save an extra 5% for emergency purposes aside from your 10% savings. If not, then you can just divide your savings and make it 5% for emergency and 5% for your savings. If a time comes that you need to take your emergency fund out, make sure that you pay it on the next paycheck. It’s much like creating your own instant payday loan account. The only difference is that you don’t have to pay for skyrocket interest rates and service charges.
Look for an extra source of income.
If you can’t save because your income is barely sufficient to make ends meet, you can always exert effort for an extra mile by searching for part-time jobs. Don’t let low-income hinder you from the financial freedom that you so desire. Let’s say you have a computer at home and an internet connection. There are lots of part-time job offers if you search on the internet and the good news is you can do it from home!
Take time to incorporate these in your routine and you’ll find that you want to save more and more every payday. In the end, you will be able to save enough and spend it anyway you like!