A household budget is something everyone needs. It gives you a way to organize your bills, identify the amounts you owe and helps you keep track of your spending. Unfortunately, many people still don’t have one in place. Without one, you are more likely to give in to impulses purchases and not tuck away anything for a rainy day.
Where to Turn if You Don’t Have Money Available
If you live paycheck to paycheck and you do not have a budget in place finding extra money to cover an emergency expense can be difficult. If you compound the situation with bad credit, getting an approval on a loan through your local bank is not going to happen. Thankfully, there are places to secure the funds you need, quickly. Online installment loans offer an alternative option versus payday loans. Companies like Blue Trust Loans specialize in providing personal installment loans. They have multiple repayment options, each consisting of low monthly, affordable payments.
Borrowing Money From Your 401-k
If you are in need of extra cash quickly for a major car or a home repair and your credit is less than desirable. You can borrow money from you. A 401-k retirement plan allows you to borrow up to 50 percent of the balance. So, even if you’ve only contributed for a few years, you’ll more than likely have a few thousand dollars at your disposal. There is a small fee added on and interest monthly. The good news is that while you will pay back more than you borrow the extra funds are going to you, back into your retirement fund. While it’s not a good thing to borrow from your retirement account, if you have nowhere else to turn to this type of loan offers a great option.
Take On a Part-Time Job
With no funds to fall back on, any setback, even a minor one, can send your fragile system into total chaos. A fast way to get back on track and reduce your debt to a comfortable level is to take on a second job. It may be something in your field, services that you can provide or you can work at a local retail store, gas station or even drive for Uber. This way you’ll pad your existing salary and have extra money to pay down your debt and get your bills up to date.
Selling Things Online/ Hosting a Garage Sale
There are millions of people who search through various sites daily to get a good price online for the things they need and want. If you have a talent for sewing or woodworking you can create things and then list them for sale. If you aren’t crafty or don’t have the extra time to put into it, you can accomplish two things at once by hosting a garage sale. Sort through your basement, garage and your attic for things you no longer want or need, then clean them up, price them fairly and select a date. Posting signs on the street corners is free and effective. If you have a sizable amount of furnishings, tools and baby stuff you can earn a few hundred dollars in a single day, all cash. As an added bonus, you get your spring cleaning out of the way early.
Importance of a Budget
A budget is important for many reasons. First, it gives you a clear understanding of where all your money is going. Secondly, it allows you to keep track of the actual balances and see the progress. And third, it keeps your payments made on time, eliminating the missing bill lost in the pile. A budget is easy to start. Simply make a list of all your monthly expenses including gas, food, and school and then deduct your net income after taxes. The money that’s left is free and clear of any obligations. Take a portion and open a savings account, even if it’s only $25.00 it’s a step in the right direction. Depending on how much you have left you can apply some towards your highest interest credit card to pay it off faster and save money.
Most people will encounter a time in their lives where things go wrong and they find themselves in need of extra cash. The difference is that those who have and stick to a budget will simply pull the funds from their account and pay the bill. Those who live week to week will continue to scrap and hunt for extra money. Make the smart choice and get your finances in order by establishing a budget.