Imagine your finances as if it were a house. What kind it is doesn’t matter, so go ahead and picture a modest bungalow or Taylor Swift’s Beverly Hills mansion. Regardless of its style, size, or price tag, a house is only as good as its foundation. It forms the base on top of which the rest of the building sits, and it has to be both strong and accurate in order to do this successfully. One small flaw can spell disaster in the future and threaten the integrity of the rest of your house’s structure.
While the actual foundation of TSwift’s ocean side mansion is made out of concrete and rebar, the foundation of your finances isn’t made of such sturdy material, but that doesn’t make it any less important. A budget can be written out on paper, saved on an iPhone, or memorized in your mind, and they all amount to the same thing. A well designed budget lays the groundwork for a financially healthy future as it supports the infrastructure of savings and debt reduction. Without it, your chances at planning for the future are at risk.
When making a budget, you have to tally every dollar you make and spend. Once you see the comings and goings of your cash, you can identify where you’re misspending. A budget will help put a spotlight on purchases that you were in the dark about making. Perhaps it’s one too many cold brews from Starbucks or unnecessary cab rides around the city.
When you see these recurring purchases in the black and white of your budget, you’ll be able to eliminate whatever it is that’s draining your extra pocket money and redirect this cash towards other goals. Goals like travelling overseas, paying off your student debt, or just being prepared when a sudden emergency demands immediate payment.
When your budget’s in its infancy, you may not have amassed enough extra cash to cover an unavoidable trip to the mechanics or that essential visit with the doctor. You can find yourself just shy of making these payments, needing only a few days until payday to get the cash that you need. But if you don’t have the luxury of waiting until you get paid, a payday lender can offer an immediate bridge between paychecks and solve your minor cash shortage problem.
These lenders come with specific rates, terms, and conditions that distinguish them from traditional lenders. Companies such as MoneyKey have streamlined their online application process to eliminate much of the bureaucratic red tape that delays or even precludes your request. When you apply for payday loans online through MoneyKey, you’ll only have to submit basic contact and financial information. This practice allows individuals with poor credit — typically those who get denied by conventional lenders — access to life-saving cash.
Refinancing can also work in your favor. The idea is to obtain a new loan at a new interest rate, so that you can create more room in your budget. Refinancing comes in many forms – for instance, you can refinance student loans, car or even house.
Remember this should you get slapped with a charge, bill, or repair you can’t afford. A small dollar loan can help bridge the gap between paychecks while you start construction on your budget. Until you’ve created a strong and steady foundation to your finances, these products are a great way to pay for your responsibilities.