Payday loans are typically very expensive and can be difficult to pay off. It is better to try to avoid needing payday loans in the first place. The one benefit that payday loans do offer is that they give you instant access to cash in an emergency, but that comes at a significant cost. There are a number of things you can do to help you manage your money better so that you won’t be in a position of needing one of those payday loans.

The first thing you should do is to honestly look at your current spending habits and compare that with your income. You shouldn’t be spending more than you earn, regardless of how high your credit limits might be. It’s important to try to save some money with every paycheck.

Next, evaluate your purchases themselves. Do you go out to lunch everyday at work? Bringing your own lunch can save you a lot of money over the course of a year. Simply, if you buy lunch for $5/day and work 22 days/month, you’re spending $110 a month. You bring a homemade sandwich, salad, and piece of fruit everyday for a very small fraction of that cost.

Try to curb your impulse buying. Sometimes you feel like you want something, only to buy it and find you’ve changed your mind a few weeks later. It’s called buyer’s remorse. Delay the purchase, if you still want it next week, buy it then, after you’ve allocated some of your resources towards that purchase. And then there’s always the old adage when it doubt, do without.

Payday Loans Alternative

There are options if you need cash till payday. If you’re really strapped for cash, try to avoid the bad credit lending institutions and consider selling something you own on eBay, or at the local consignment shop. If you have a lot of things you can bear to part with, you might want to have a garage sale. Typically, you will probably get a better price for collectibles on eBay or at a consignment shop. Selling unwanted items not only frees up space in your home, but also can help to bring in some extra cash.

Save Money at the Supermarket

Don’t be embarrassed to use coupons. Many restaurants are offering coupons to entice customers into their establishments. These can significantly cut your restaurant bill, especially if you have a “buy one, get one free” dinner coupon. You can also find coupons for haircuts, home services (such as a visit from your plumber), and of course, the grocery store. Clipping coupons can cut real money off your grocery bill, especially if the store offers double or triple coupons.

Look at the services you pay for in your home. Do you really need the super platinum plus cable package? Or can you live with the basic package? Do you really need unlimited calls and text messages, or can you live with a more basic mobile phone plan?

Don’t Use Payday Loans For Luxury Items

You also want to avoid the “I deserve it” trap. You deserve to live a life free of debt collectors hounding you. Just because a television commercial tells you that you need to have the latest, greatest, newest (insert product here) doesn’t mean you really do. If your mobile phone is still working, why do you need to get a new one? Often, you can get a free phone when re-upping your contract with the cellular service provider.

Take care of the things you own. Don’t skip basic maintenance because you’d rather buy a big screen TV. It will cost you more if your car ultimately breaks down. The same goes for your own basic medical care… don’t skip those annual visits to your doctor and dentist.

You may want to try a little experiment. Promise yourself you won’t buy anything other than your staples: groceries, gas, train or bus pass, and your monthly bills of course. After two or three weeks, you’ll begin to understand just how much money you spend unthinkingly.

Pay Yourself Before Reaching For Payday Loans

One of the more important habits you can get into is to “pay yourself first,” and that doesn’t mean getting one of those payday loans and getting cash for yourself. It means that if you have a regular job, you can probably set up direct deposit at work. This means your check is deposited automatically into your checking account. What many people don’t realize is you can often set up two or three direct deposit accounts. Set up a savings account at the same bank where you have your checking account. Then ask your Human Resources person how to go about having whatever amount of money you can, even if it’s as little as $10 a week, into the savings account. You won’t even notice a difference in your paycheck, but over time, the money in that savings account will grow. It’s a good idea to have between 3 and 6 months salary saved up in case of emergency. Yes, you read that right, save three to six months worth of cash and use that money for emergencies instead of relying on payday loans as your bailout fund.

Finally, be a smart consumer. If it’s really important to you to buy something that’s fine, go ahead and save up for it, or buy it if you have the cash. But don’t feel you need to buy the latest $110 jeans just because they’re in style. Buy what you can afford. Your financial health is more important than having stuff. Good spending and savings habits will keep you from needing one of those payday loans in the first place. And if you can avoid being in that situation, you’re ahead of the game!