Needs vs. Wants

Recently, I had a friend tell me he was thinking about taking out a payday loan to use for the next couple days before his next paycheck. I asked what he needed it for and why it was so urgent. It turned out he just wanted it so he could go to Best Buy and buy a Playstation 3!

I asked him if he needed a PS3 immediately. Obviously, he didn’t need a PS3 — he wanted one. You can get a payday loan whenever you want and for whatever reason you want, but that doesn’t mean you should go out, get a payday loan and then buy all the electronic gizmos you want. Payday loans are meant to be used in situations where you have to get cash on the spot because of a pressing need, which he didn’t have. They’re meant to be a quick fix to help you get past pressing needs until your next paycheck…and I don’t think I have to tell you that a PS3 is not a pressing need!

In the case that you are financially stable and need some money for a few purchases, there are probably better ways to go about it.

Tips for Managing Your Finances

• Set a weekly budget for yourself. Figure out how much money you typically spend each week, and then try knocking $25 off it. This way you’ll still have some money before payday.
• Start a spare change jar. Every time you get change for a purchase, throw it in the jar and see it what it adds up to every couple weeks. If you use a debit card more than cash, sign up for a bank account that rounds up your purchases and deposits the change in a savings account.
• Try cooking food instead of eating out or buying prepackaged meals. It’ll take longer but is healthier and much cheaper.
• You’ve heard it before, walk or take public transportation instead of driving. You’ll save money on gas and help the environment too.
• Find one thing you can do without or a cheaper substitute for it. For instance, get a lower cell phone plan, cancel the extra movie channels on your cable subscription, find a cheaper gym membership, etc.

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