In an ideal world, you can have all the money you need and want. In the real world, however, you must sometimes resort to cash loans to finance your needs and wants. In an ideal world, your debts will pay for themselves without any effort on your part. In the real world, however, there are three things you must do after you have received your cash advances.
Budget Your Money
You applied for cash loans because the household budget went haywire for various reasons like medical emergency, sudden death and unexpected school expenses, among others. Well, now is the best time to put your budget back in order especially now that you have an additional expense - principal loans plus fees and interests - to think about.
Experts recommend that the budgetary allocations for all household expenses be reduced by at least 10 percent from the time the cash advance was approved to the time it was paid. Of course, it will be so much better if you continue to stick to the revised budget even after the debt was paid.
Ideally, the percentage of the budget for each household item expense must be: food 10 percent; home and utilities 40 percent; transportation and maintenance 15 percent; clothes 5 percent; miscellaneous expenses 5 percent; and savings fund 10 percent. Of course, you can vary the percentages to suit your lifestyle but always remember that you have to reduce the amounts you spend on each one in order to pay off the cash loans in the shortest time possible.
Save, Save, Save
In turn, your adherence to a strict budget will provide for plenty of opportunities to save, save, save. And when you do, you will still have money left over so that you will not have to take out more cash loans in the future!
There are many ways with which you can save like:
* Turning off the appliances when not in use as well as unplugging them whenever possible.
* Lessening recreational entertainment provided by outside sources like movies and dinner in restaurants. Instead, just watch DVDs at home and eat more home-cooked meals. It also helps to bring your lunch to the office.
* Opting for generic brands in clothes, accessories and shoes, whenever possible. Or you can always invest in one good suit instead of 3 bad suits.
* Foregoing the little luxuries in life like salon and spa treatments.
You will find the truth in the adage that a penny saved is a penny earned. And each penny saved can go a long way towards paying every penny of your cash loans!
Earn Extra Income
If you have a hobby that others like, you can always turn it into a side business. This way, you can earn extra income with which to supplement your regular income. You never know, too, if it will be the start of better finances when a hobby turns into a full-fledged business. And you don't even have to go far from your home as there are online jobs that you can engage in.
Truly, when it comes to cash loans, you have to the savviest individual you can be, finance-wise. Otherwise, you might just find yourself the fool in the game of life.