Would a fast low fee payday loan work to your advantage when multiple charges are looming ahead? Do you have the means to escape all charges by having access to quick free cash? Unless you have a savings account or know a good friend or relative who will help you out of your financial crunch, you will be smart to try to fix it all at the competitive cost.
It’s not very often that extra money falls into our budgets. When it does happen, you have to be smart about every financial decision you make. Tax season is a great example of extra money coming into many bank accounts via a tax return. It is a good day when this money comes. Some people have it spent before it comes while others hem and haw as to what it may be used for.
Another type of money which comes to fewer people’s way is in the form of a bonus. Some employers share a boost in profits or use the money to congratulate employees for work well done in the form of a check above and beyond earned salaries. There are some best ways to use this money to your advantage. Before you begin to spend a dime, make sure you know how this will affect your taxes and take out of the check what you will need to cover any tax liability. If this bonus puts your earnings into a higher tax bracket, you will be thankful that you withheld potential payment ahead of time.
Replace low cost payday loan fees with a supportive savings account.
One of the best uses of extra money is to support your own budget by putting some if it away into your savings account. Consider it the best payday loan possible. It will be free! Not only are you saving money right now by not spending the whole bonus, but you will be saving money later when you no longer need to apply for a short-term loan to cover unexpected costs.
If you live paycheck to paycheck like many Americans, it would also help to use some of this money to pay down your debt. Lowering the principle will reduce the interest charges against each term period will also help to cut future costs. The lower the principle, the less interest will be added every statement. If you do have an online payday loan out at the time you receive your bonus, it would be a smart choice to pay off the high interest debt. If you do not, find the cred card with the highest interest and low the principle balance there instead.
If your bonus check is big enough, look into some investment options. Could you make a payment into your IRS or at least start one? It’s never too early to start saving for your retirement. Even if you cannot invest the maximum contributions each year, any amount saved for the future is better than nothing.
Of course, a bonus would not be as much fun if you didn’t reward yourself just a little bit. Your happiness is important as long as you can keep the cost low. Keep your money servicing your own needs. With debt payments lowered, you will find you have more money each month to use to your advantage. Now that you have a savings account to keep your finances focused in a positive direction, divert your credit card and fast payday loan usage when financial situations try to sabotage your efforts.