You might have noticed a small trend on some of our payday loan advice. You have probably seen the word "budget" pop up a number of times. Well, we talk about a budget and its importance for a reason! A great budget can do wonders for your financial life. If you budget correctly, then you can even avoid the need for a payday loan. But how do you do that?
A Great Budget and You
What you need to do is figure out how much income you take in every month. The amount needs to be after taxes, of course. This should only be the income you know you are going to make, not unexpected income. Only budget what you know you will have. It is important to know as close to the exact amount as possible, do not round off the number. If you do that then you are giving yourself money that is not there. Next thing you need to do is figure out every single bill that you will have each month. These include: mortgage/rent, phone, internet, television, insurance, credit card, etc. Subtract these from the amount of income you have coming in. It is also important to know when each bill is due. Know if there is a week where four bills are due, or if the bills are generally spread out throughout the month. These are the things you need to worry about first, after you figure out your income. Next you need to figure out how much you spend on other expenses. These expenses are things like: gas, food, investments, school tuition, donations, and anything else to which you routinely contribute. These are not expenses that are only done on a one time basis. This can help you because you now see how much money you have after your bills and needed expenses. Does that number look bigger then you thought it would? Hopefully it does. This means you know have what is called "disposable income." Do not let that phrase fool you, however. Just because it is disposable does not mean you should waste it. This is the money you can use for entertainment, but also have in case of an emergency. This is really how you set up a successful budget for you and your finances.
Beating Your Budget Demons
Now that you have a successful budget you can hopefully avoid a payday loan. You know what bills you need to pay and you know where your money is going during the month. Your bills will not surprise you any longer. Congratulations, you are now ahead of the financial game. That is more then many people can say. Hopefully your need for payday loans is broken, and your money is working harder for you now.