If you budget an allowance for yourself, would you end up needing a cash advance because you can’t control your spending? We give our children an allowance to spend at their own free will, why not give ourselves one? It may help to have some “free will” money to spend in order to keep the other budgeted categories unscathed by the end of the month. Using a cash advance to pay for cost of living expenses is only a budget buster. Plan ahead and keep money aside for the extras.
It ultimately boils down to control how much we spend on extras. When we give ourselves a bit of freedom which allows us to have dinner out once in a while or stop for that much needed afternoon caffeine boost, we often times will be less apt to overspend.
How can you give yourself a cash advance?
Take a look at your budget. Where is the category which gives you a chance to spend on something frivolous? Even dieters give themselves one day a week for a treat. A good budget maker would do the same by rewarding themselves with a small treat for keeping living expenses within their allotted budget. Would this be $10/week or maybe $25 if you cut back somewhere else? Could you load up your coffee card (if that is your splurge) and when the amount is gone, you go without till the next month? Would you squeeze a bit more out of another category in order to give yourself a cash advance? I wonder how many people would find ways to cut back if it gave them more spending power.
Maybe you could care less about a coffee run, but would rather upgrade to a smartphone. Most of us have learned to avoid the wait by using credit or cash advance short-term loans to purchase items we cannot afford at the moment. Instead, we could set aside our allowance and save up in order to make the purchase with cash. That’s right, pay for the item in full at the time of purchase. When is the last time you have paid cash for an item you wanted? Did you ever think that you could purchase your upgraded smartphone in full? How do you think that would affect your overall finances?
It may take some sacrifice in the beginning. If your spending turned from a “pay for it later” approach to a “pay in full now” one, not only would your debt decrease, but you would have more money to spend. How could that be possible? What you aren’t paying a creditor or cash advance lender in fees and interest, you could be saving towards another treat. Better yet, reinvest that money for your future. I would bet that the majority of people who carry large debt amounts have not even stopped to think about what happens after retirement. It’s a mindset; learning to view your money differently.
Are you old enough to remember the days of store layaway programs? The store holds your item and each week you make your payment. Once it is paid in full, you get to take the item home. This was the way it was done before credit cards were so readily available to those who cannot afford them. This was the way people took advantage of sales but did not accrue large amounts of debt.
When you live paycheck to paycheck or have very little for extras, this money mindset makes more sense than using credit or a cash advance in order to make a purchase. Start giving yourself an allowance to build up the money to pay in full. Its mind over matter; when the “matter” is your money, you mind should be on it.
