Cash Advance Addiction & Secure Financial Future Planning

by : Michael Tagnani

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Cash advances are viable short term financial solutionsfor urgent issues that cannot wait until your next pay date. When used responsibly,cash advances can come in very handy. However, there are certain cash advancecompanies that actually prey on the temptation of spending money before you’veeven received it. This is the complete opposite of good financial planning.

Many people find themselves in legitimate need of a cashadvance, and then through poor planning find that they are short on funds forrepayment when payday rolls around. They then decide to take out a secondadvance to cover the first. This is the beginning of the cash advanceaddiction. For many people, this turns into managing biweekly loan fees for theexcessive number of payday loans they wind up juggling.

The general rule for your finances should be to earnmoney, put a small percentage in savings, and then spend. In today's economy this can be a difficult rule tofollow, but it is the only way to avoid the cash advance addiction.

Here are some tips to help you avoid the cash advanceaddiction and plan a more secure future.

1.?????Know YourFinances and Make a Budget - This is the hardest part for some people. Youneed to put all your bills in front of you and lay out a monthly budget.Unnecessary expenses need to be cut back whenever possible. Don't forget toinclude daily expenses into your budget, like groceries and gas. If possible,leave a small amount as a cushion for an unexpected event. Ideally, that"small amount" can then go into a savings account.

2.?????Set Goals– Goals are always a great incentive for everyday life as well during yourfinancial planning. You can start by clarifying your ultimate goal and thenwork backwards into smaller, tangible goals. Your ultimate goal may be to have$250,000 saved by the time you retire.? Asmaller tangible goal might be to lower the number of extra minutes you pay foron your cell phone or only go out to eat once a week instead of twice. Set thatlittle extra in savings.

3.?????Save,Save, Save – Every little bit counts. You can start by saving $5 a week ina coffee can if you need to. Throw all your change into a jar and at the end ofthe month you'll have extra money to add to your savings.

4.?????Open aHigh Yield Savings Account – Once you have saved at least $100 find a bankoffering a high yield savings account. Many banks now offer you 3.0% interestor higher. Keeping your long term goal in mind, you can always use your"emergency fund" if necessary, which will eliminate the need for gettinga cash advance.

5.?????AvoidTaking Out Multiple Cash Advances – If you find yourself in a situationwhen you simply can’t avoid taking out a cash advance, plan and budget for therepayment on your next pay date. Do not take out second and third payday loanswith the reasoning that other things came up. Trying to manage multiple cashadvances will become very difficult faster than you think.

If you follow the stepslaid out above you’ll be on your way to a more secure financial future. Yoursavings account will be there earning you money until you run into emergencycircumstances. Taking out an occasional cash advance may ariseBusiness Management Articles, but you willneed to be disciplined and promptly take care of