Money Rut

So here it is, a week before payday and your wallet and bank account are empty like theaters during the premier of Disaster Movie. It is often this habit of living paycheck to paycheck that gets us into these binds. And as costs rise and incomes don’t keep up with these fluctuations or we find a pink slip in our inbox, this is becoming more common in today’s economy. In fact, some 50% of workers are in this exact situation.

How does one run out of money? The problem lies in discipline. Some two-thirds of us have some kind of budget in place but only about 20% really follow it. The other problem is that while we were busy buying the latest fashions or travelling to Aspen for our winter holiday, many of us neglected our savings accounts. These are all contributing factors to what I call “inequity of living standards”.

Many find that when we aren’t able to sustain we simply whip out the credit card to help carry us over until that next payroll deposit. The problem is that credit card issuers are hacking credit lines like Jason Voorhees in a Friday the 13th flick. What I predict next is that we will see more and more consumers migrating to payday loan scammers in order to make ends meet. My advice: stay away and don’t post-date that check!! There are three things I want you to consider before exploring the two options above:

1. Is it essential? - By essential I mean does it fulfill Maslow’s two basic needs: physiological or safety. While that new sweater would look nice, I’m sure the old one in the back of the closet gathering dust and cobwebs would suffice for another season.

2. Is it practical? - Many folks have different definitions of what is practical, but let’s look at it this way: You are buying groceries at the big chain grocery store without a coupon in sight, or you could buy those groceries at an alternative grocer and perhaps get an extra bag’s worth of food for the same price. Practicality needs a plan.

3. Will you be able to pay for it when the bill or maturity date comes? - A big one and even if the answer is not clear, consider this: Are you willing to change habits in order to get out of this rut? If you truly are committed then go ahead and make ends meet. If you constantly find yourself lacking follow-through, find funds from another source: borrow from friends/family, get a second job, and/or seek help.