Lyons Leadership

Payday loans are typically very expensive and can be difficult to pay off. It is better to try to avoid needing a payday loan in the first place. The one benefit of a payday loan is that it gives you instant access to cash in an emergency, but that comes at a significant cost. There are a number of things you can do to help you manage your money better so that you wont be in a position of needing a payday loan.

The first thing you should do is to honestly look at your current spending habits and compare that with your income. You shouldnt be spending more than you earn, regardless of how high your credit limits might be. Its important to try to save some money with every paycheck.

Next, evaluate your purchases themselves. Do you go out to lunch everyday at work? Bringing your own lunch can save you a lot of money over the course of a year. Simply, if you buy lunch for $5/day and work 22 days/month, youre spending $110 a month. You bring a homemade sandwich, salad, and piece of fruit everyday for a very small fraction of that cost.

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 you really need some extra cash fast, look around your home. If you have unwanted items, you might consider selling them. If you have collectibles, you probably want to bring them to a consignment shop or sell them on eBay. If you have a lot of things you could bear to part with, have a garage sale. By doing these things youll clear out some space in your home, and youll get cash for doing that.

Dont be embarrassed to use coupons. Many restaurants are offering coupons to entice customers into their establishments. These can significantly cut your restaurant bill, especially if you have a buy one, get one free dinner coupon. You can also find coupons for haircuts, home services (such as a visit from your plumber), and of course, the grocery store. Clipping coupons can cut real money off your grocery bill, especially if the store offers double or triple coupons.

You should review your home services. How much do you pay for your cel phone? Do you really need to have unlimited text messages? You can probably get a cheaper package, just pay attention to what your contract says about changing your plan. How about your satellite or cable package? Do you really need all the movie channels or can you get away with the local free tv?

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.

When youre trying to economize, dont skip maintenance items because you need to have a new something. It will cost you more in the long run if you avoid the dentist for a few years than it would if you went in for regular cleanings. The same goes for your car. Oil changes and other basic maintenance are important and can help keep you from more expensive repairs.

You may want to try a little experiment. Promise yourself you wont buy anything other than your staples: groceries, gas, train or bus pass, and your monthly bills of course. After two or three weeks, youll begin to understand just how much money you spend unthinkingly.

One of the more important habits you can get into is to pay yourself first. If you have a regular job, you can probably set up direct deposit at work. This means your check is deposited automatically into your checking account. What many people dont realize is you can often set up two or three direct deposit accounts. Set up a savings account at the same bank where you have your checking account. Then ask your Human Resources person how to go about having whatever amount of money you can, even if its as little as $10 a week, into the savings account. You wont even notice a difference in your paycheck, but over time, the money in that savings account will grow. Its a good idea to have between 3 and 6 months salary saved up in case of emergency.

Finally, the best thing you can do is to be a smart consumer. If you really want to have something, save up for it, or buy it if you have the cash. If you cant afford something, save up for it. Dont go into debt for the sake of a new big screen plasma TV or this years hot phone. Your financial health is more important. Developing good savings habits, and being smart about your spending will prevent you from needing to get a costly payday loan.