Is What You Earn More Important Than What You Spend?

May 2, 2013 by · Leave a Comment

Obviously there is a direct correlation between earnings and spending. To paraphrase Mr Micawber, ensuring that you don’t spend as much as you bring in, is the path to success and happiness.

There are many people out there who believe that the only way to be successful – at least financially – is to earn a whopping salary. But even if you do, if you cannot control how much you spend and on what, the success and happiness that you crave will prove to be elusive.

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Now that is not to say that it does not matter how much or how little you earn, just so long as you don’t spend it all. Clearly, there is a level of income which is necessary for most of us to be able to get by in relative comfort, without struggling constantly to make ends meet. But the point is, that this level of income may be considerably less than the six figure salaries we are all conditioned to believe mark you out as successful.

Take for instance someone in a good salaried position who decides to leave the comfort of a good steady job to strike out on their own Self-employment can be an exciting adventure, but it can also be quite scary. For many starting off on a new venture means having to adjust to a lower income, obviously in the hope that further down the line things will improve to the extent that their new venture will bring an improved salary and working conditions. However notwithstanding the initial drop in salary, most self-employed people will tell you that they enjoy life more. It’s possible to make adjustments in your lifestyle and outgoings to meet your reduced income.

So at the end of the day it would appear that so long as you have at least a median level of income, the amount you spend each month may be more important than your actual income in determining your future contentment.

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Filed Under: General, Personal Finance ·

Tips On Using Payday Loans To Your Advantage

April 17, 2013 by · Leave a Comment

We all know that in financial terms times are tough these days. More and more people are struggling just to make ends meet each month. Constantly juggling your finances can be extremely stressful and it looks as though it is something we will all need to get used to for the foreseeable future.

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If you are finding things tough then you may have considered applying for a payday loan to help ease your short term money worries. Certainly payday loans offer  major benefits in that they are so easy and quick to apply for. If your application is accepted you could have the money you need in your account in a matter of a few hours. Compare that with traditional bank borrowing! However, as with all financial products there are pros and cons. So, before you think about applying for a quick cash advance we suggest you bear the following points in mind:

Do you really need the money that quickly?

As has been stated, one of the main reasons for choosing a payday loan over more traditional forms of finance is the speed of application. But it is worth asking yourself whether you really need to access funds in such a hurry. If you have a bill that has to be paid immediately, then a payday loan may be the obvious choice. But if you still have some time before payment is due, why not consider a less expensive form of borrowing, such as a credit card, overdraft or personal loan?

In short, reserve payday loans for real emergency situations

Start off small

The interest rates payable on payday loans are substantial, much, much more than with other forms of borrowing. Also, if you are unable to pay the loan back on the due date and have to roll it over, there will be extra charges added to the advance as well. Given these factors, it makes sense to borrow only what you need and no more. If you have used payday loans in the past without any difficulty, then by all means go for a larger amount, but if you are a first time applicant it makes sense to start off with a small loan

Use them strictly as intended

Payday loans are designed for short-term use only and should not be regarded as a long term borrowing solution. Over an extended period the interest and charges can be crippling and this is one of the reasons payday loan lenders have attracted so much bad publicity. If you are in any doubt about your ability to repay the loan on the due date – usually within 30 days – then payday loans are best avoided. There are other options available, some of which have been mentioned above. In addition, you could consider pawning some of your more valuable possessions or perhaps visiting your local credit union for assistance on a more long term basis.

Filed Under: Loans & Mortgages, Personal Finance, Saving Money ·

Get Started Saving Early!

April 2, 2013 by · Leave a Comment

There is lots of advice around for savers. Some of it is good, others have less merit.  Much of it tends to relate to a particular product or investment vehicle. But there is a different way to approach things. When it comes to savings there are two golden rules: start early if you possibly can,  and save regularly.

The very first thing we can recommend for you is to save now for the future. You can start saving and place your savings into a certificate of deposit or savings account. Right now both CD rates and savings rates are very low but don’t worry – while  interest rates on deposit accounts and mortgage rates are at historic lows at the moment you are after all goling to be taking a long term approach and these rates are bound to increase in the future.

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You can also invest in a little riskier place like in stocks or mutual funds. You should only really consider this once you have a broad range of general savings already in place upon which you can fall back if some riskier investment fail to take off.

Stocks and shares are worth considering simply because there is no other investment that will give you that kind of level of return in the long run, but do your homework first or you may find it is a costly and salutory lesson.

The second thing to do in connection with any savings plan is put together a budget. Find some money to put into savings after budgeting and save, save, save.

When you change jobs or think you need some extra cash for aholiday or perhaps a special purchase, resist the urge to cash out these accounts.You are in it for the long haul, remember.   Having savings set aside not only helps you plan for a rainy day, but also means that if unforeseen events crop up, you are able to handle them without recourse to other forms of credit like, for instance, payday loans or credit cards. These can be particularly expensive. Some payday lenders are OK, like The Blue Sky Loans Co but as a general principle you really want to avoid paying for expensive credit if it’s at all possible.

Filed Under: Personal Finance ·