Avoid a cash advance by creating your own savings account. It is a phrase used often and followed by few. It is difficult to do when budgeted expenses are waiting on the next paycheck. Difficult is still doable, it will just need a bit more focus and effort to follow through. Since many people use cash advances online as a option to not cut back, it will take a change in thinking and possibly habits to improve finances.

Do you use a cash advance to avoid cutting back?

I have had to change the way I thought about money. You cannot always prepare for life circumstances which can create financials troubles without any notice. Creating a savings account was one of the first things I did. I can’t say I have no where else to put my money anymore. For me, (and I am certain others have similar thoughts), if there is extra money in my checking account, extra items tend to land in my grocery cart and daily extras tend to creep into my expenses. I am so used to being rigid with my spending, that it feels good to be able to say “I can” when the children ask for a particular cereal that their friends eat. If the money is in my checking account and not attached to a scheduled payment it slips through the cracks.

How can a cash advance be replaced by a savings account?

So what do I do? When I know there is going to be extra in my account, I will try to pay down one of my credit card bills. Or I immediately make an online transfer into my savings. I have a certain amount which comes out of my checking account that automatically gets deposited into the savings at the end of each month. It takes a lot for me to withdraw money from my savings. The savings account is the forbidden zone that takes a financial emergency for me to dip into. I can honestly say that I do pretty well in this department because I dislike having to go elsewhere for money. It would take an extreme emergency for me to go to a relative, friend or utilize a financial service, (not including car or home loans).

Cash advances do not come free.

I started with saving $25 dollars a month. It took me to cut out all food and drinks out of the home during the work week to manage that one. I do allow myself to treat the kids every now and then. The same reward applies to any extra left-over from my paycheck. My bills are split in half throughout the month, so if I pay extra towards my debt, I allot myself a bit of cash to spend. It alleviates the urge to refill the credit card. One thing I have learned writing about cash advances and payday loans is that using credit cards when working so hard to pay them off is self-sabotaging behaviors.

When it comes to money, there needs to be some strict rules while have a few more which are a bit more flexible. Treat yourself every now and then for a good job. Build that savings up to utilize in financial emergencies. Filling the gas tank or the pantry with food from your own money is where the true savings is had.