How Being Broke Really Pays Off
A lot of Americans have found themselves in a difficult financial situation at some point in their lives. For many, due to poor money management, being broke is no joke. They are unable to get their financial lives in order, and many struggle to make ends meet and pay the bills. With increasingly more people living paycheck-to-paycheck and often unable to cover their household’s financial needs, it helps to learn how to budget like you’re broke.
Anyone can end up in a bad financial situation. Whether you earn a little or a lot, mismanagement of funds can lead you to a lifetime of financial brokenness. If you live beyond your means, it will likely catch up with you at some point and lead to further debt. Whether you are facing financial difficulties or simply looking for a way to improve your money management skills, put on your I’m broke and loving it hat and start that savings account growing.
- Deal with debt: Being broke is no excuse for not taking a closer look at your finances. Ignoring your debt won’t help. Sit down, figure out how much you owe (including interest), and learn what kind of interest you’re paying for the different types of debt you have. Why? Well, part of budgeting like you’re broke is trying to lower your payments as much as possible. Knowing the interest rate used to calculate your balances provides you with the chance to reach out to your lenders and to possibly negotiate lower rates, payment arrangements, or some other solution that will improve your debt balance.
- Prioritize payments: Once you have managed to reduce your outstanding debt as much as possible, it’s time to prioritize. According to many financial experts, the debt with the highest interest rate should be tackled first. Whether you choose to go down this path or decide to pay your way from smallest to highest debt amounts (giving you some sense of accomplishment), organize your payment due dates, divide your take-home pay accordingly, and make budget cuts based on what you can afford and when you need to cover payments on each debt.
- Have a plan: By dealing with your outstanding debt, you are putting a practice in place. Having organized your bills, it’s time for you to plan. Continue your I’m broke strategy for as long as you can, but do try to work toward a less restrictive plan. This will allow your monthly finances to become easier to handle while still keeping you on a course to reach financial stability. Remember, the plan you started with initially might need tweaking as you pay off your debts — readjust as you accomplish milestones in your financial plan.
Payday Advance as Backup
Anyone on a quest to better financial stability can experience setbacks. Whether it’s unexpected situations or financial emergencies, a discount payday advance allows you to cover most unplanned events without throwing your budget strategy off track. Payday advances are convenient small loans that provide users with just the right amounts to deal with unexpected situations. Money from a payday advance is deposited into your personal bank account and is readily available through your personal bank ATM card. Payday advances are sure-fire ways to tackle those unplanned financial predicaments that threaten to wreak havoc on your financial efforts.