Of Pay Day Loans and Proper Budgeting

2007-03-08 10:33:40

( Financial )



There are times when the salary you receive each pay day is not enough to cover for all your expenses. During these difficult times, you have several options. One of them is to apply for a pay day loan. Though short term, pay day loans offer immediate cash when money is urgently needed. For long term solutions, proper budgeting skills are guaranteed to work.

About pay day loans
In case that you are short of cash and your pay day is still some weeks ahead, you may try applying for a pay day loan. Pay day loan which goes by many other names, is a loan that is payable within a short period, and thus, have higher interest rate. This is how it works: you will be asked to issue a check with the amount you need plus the interest rate for your loan. The interest rate will vary on the amount you need. Then, the lender will give you the amount you need in cash. Once the deadline of payment comes and you still don't have the cash to pay it with, your loan will get bigger with each additional day or week you miss paying.

To acquire proper budgeting skills, it is important to know where your money goes, live within your budget and to set financial targets.

Write them down
Make a list of all the expenses you make in a week or a month. This will give you an idea of where your money goes. Skipping small but unnecessary purchases like that bar of chocolate you regularly buy after lunch will not only trim your waist. It will also fatten your wallet.

Live within your means
Now that you have an idea where your money goes, you can easily identify which items to minimize or totally skip buying. This will give you more control in stretching your salary between pay days.

Set goals
There may be instances when extra money is left from your last pay day. Keep this. You will never know when a financial emergency strikes. After all, it is much better to have savings for the rainy days. You may start small and later on, you can set aside quite a sum for dream purchases or lavish getaways.

Carefully budget your salary. Staying positive financially always offer an edge.


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