Payday Loans

35 Creative Money Saving Tips To Avoid Payday Loans – Part 4

In the last three parts of this article, you read about twenty-one very creative ways to save a lot of money so that you can avoid payday loans. Following are seven more tips and tricks that will help you save more money.

22. Avoid Foolish Purchases At Bars

When people go for drinks in bars, they forget their financial goals and prefer to ‘enjoy the moment’, which often causes a serious dent on their wallet. For example, when you are drunk, you are likely to feel tempted to make some foolish purchases, such as ‘drinks for everyone’. So, the best thing is to avoid going to bars at all, especially during a period while you are working hard to bring your finances back on track.

23. Review Your Credit Score

In order to reduce your expenses, to increase your savings and to avoid payday loans, you must also pay attention to your credit score. You must first understand how your credit score is calculated (what factors are taken into account). And then you must review your credit report, at least once every six months. The objective of this review should be to ensure that the entries mentioned in the report are correct and complete. The review will also help you find those areas of improvement, where you have to work more to increase your credit score. As per the US laws, you are entitled to one free credit report every year. You can contact the three major credit Bureaus (Equifax, Experian and TransUnion) either by visiting their official websites or through phone (they have toll-free numbers). If you find that there are certain errors and mistake sin your report, you must file a dispute immediately with the credit bureau and get those errors rectified. An increase in credit score will help you negotiate with your lenders and insurers for lower interest rates and premiums. Besides that, regular review of your credit report will also ensure protection against identity theft, as it provides you an opportunity to spot unusual activities (if any) that were otherwise not in your knowledge.

24. Treat The Monthly Contribution Toward Your Saving Fund As A Mandatory ‘Bill’

In order to avoid payday loans, you need a lot of money saved in your emergency fund, which you can access anytime when you need. Therefore, you are strongly recommended not to take your savings effort lightly. Once you determine that you have to contribute a certain percentage of your monthly income toward your savings account, make it a mandatory affair. An easy way to do this is to learn to treat these contributions as necessary bills, such as your utility bills. This attitude, this frame of mind, will help you achieve your financial goals more efficiently.

25. Consider Shopping At Dollar Stores And Thrift Stores

Though shopping at dollar stores and thrift stores is recommended, you are also advised at the same time to be very careful with your selection of the right items. In general, these stores provide you ample opportunities to buy things at much lower price as compared to other stores. If you shop carefully in a dollar store, you can easily find a wide range of products that are EXACTLY the same as they are offered in other big stores; the good news is that dollar stores offer these products at much cheaper price without compromising with the quality. Likewise, thrift stores provide you an opportunity to purchase name brand clothes at heavy discounts.

26. Consider Getting A Second Job

If all your saving efforts do not seem to build enough savings to avoid payday loans, you must seriously consider the option of getting a second job. If you have already reduced all your expenses to an optimum point (even practicing frugal living) and you still need more cash to meet your emergency fund requirements, you should work on strategies that can increase your income. There are several ways to do that, such as working overtime, asking for a raise from your current employer, switching to another employer who is offering you a better pay and getting a second job. In this age of Internet, it is very easy to get a second job; in fact, there are many things that you can do right from the comfort and convenience of your home, such as freelance writing. You can work in your free time and earn extra income. But, you will have to be very careful before you finally decide about getting a second job. For example, you must consider the tax implications as well. If a second job is pushing you into the next tax bracket, you will probably be able to save very little as compared to the number of hours you work for the new job.

27. Use Cash; Avoid Credit Cards

Interestingly, the habit of using cash for most of your purchases can also prove to be very helpful in saving a lot of money, which will eventually help you avoid payday loans. Credit cards are no doubt handy, but you must use it very wisely. The problem with credit cards is that when they are in your wallet, you feel encouraged to spend more because you have been approved a high spending limit on them. But, when you go for shopping with limited amount of cash in your wallet, you are less likely to feel tempted to go for impulse buying; instead, you will focus on purchasing only those things that you have planned for. When you use cash for purchases, you will always be well aware of your current financial situation, which will encourage you to spend wisely because you very well know how much hard work you have put in to earn that money. Credit cards often result in careless spending, as it provides you no idea on whether a particular purchase is something you can afford or not.

28. Set Your Budget In A Way That Is Easy To Monitor

While you are working on different ideas to save money so that you can avoid payday loans, you must pay special attention to whether your budget plan is efficiently designed to allow you to track the progress or not. You are advised to have both weekly and monthly budgets, as it will help you track your expenses more efficiently.

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One Response to “35 Creative Money Saving Tips To Avoid Payday Loans – Part 4”

  1. John says:

    Very interesting and suggestive tips. Saving a lot of money is a very important issue. Every one wants to save a maximum amount. After reading this article, I found the major steps to save the money. It is very wisely described that we should save the some amount as emergency fund. I am fully convinced with this tip. If we make a habit for doing so, this habit will help us to achieve our goals and our life will become very easy and smooth. Also, you must pay attention to your credit score and understand how your score is calculated. With this system, you can reduce your expanses and increase the savings. It is specified in step 22 that avoid foolish purchase at bars. If you avoid going to bars at all, you can also save a good amount. Though shopping at dollar stores is recommended, it is advised to be very careful with you election of the right items. Thrift stores provide you an opportunity to purchase name brand clothes at heavy discounts.

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