Downsize to Manage Your Money Better

Debt is an ever-increasing problem in America. Although there are lending guidelines to keep people from getting into too much debt, it seems we are using loans instead of cash to pay off more and more of our expenses. We might start out with a mortgage that takes approximately 30% of our income, followed by a car with a loan that might take another 20%. Already, we are facing a 50% outflow of income monthly and the three to six month's emergency fund suggested by most financial experts soon becomes a pipe dream. In this situation, sometimes to stay current, one has to take a payday cash advance just to make ends meet.

One of the ways to avoid getting into this dilemma is tried and true, but may be somewhat unpopular: Downsize your home and car. Just because you can afford the maximum 30% of your income to go towards a home, doesn't mean you need to max out. If you are a single householder with no second income or just do not need the space, think about keeping a financial cushion for yourself in case you job suddenly disappears. Buy a used car, instead of a new one and you can avoid the depreciation of thousands of dollars the moment you drive off the lot. The car can still be the model and make you want, and even have a warranty for some parts if it is a certified pre-owned which can come with a warranty.

While it's nice to know that there are payday cash advance services that can help in a tight spot, it can be a good thing to learn to live below one's means. Then, when you take out a payday cash advance, you will be pretty certain the situation is temporary and can be paid back on the next business cycle.

Contributing National Payday Staff Writer

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