Who hasn’t sat down to table a budget only to realize they have no idea what they’re doing? Much like riding a bike, perfecting an effective wrist shot, and mastering the opening riff to Spirit of the Radio, it’s something that needs to be learnt and practised before you get the hang of. Even those who have managed to follow a household budget in the past may encounter difficulties when too many bills and repairs rear their ugly heads at once. It’s a huge challenge to meet your payments on time when your digital (or old-fashioned paper) financial plan fails you. When there’s no raise in your imminent future to help you cover this collapse, you’ll have to look elsewhere to get back on track. So let’s think about where you can find it.
- Banking Institutions: Traditional lenders like your home bank have a variety of financial products designed to help Canadians make their financial commitments. Unfortunately due to internal formalities, conventional lenders take too long to review and approve your application for a loan, meaning their assistance will come too late for your deadlines.
- Loved Ones: If they aren’t in the same position, friends and family can help you out in your time of need. The downside is that this rearranges your relationship so that you’re borrower and lender. This, coupled with the fact that these advances tend to go without clearly defined terms, can ruin your friendship.
- Non-Traditional Lenders: Lenders of online payday loans, on the other hand, can connect you with the money you need when you need it, without putting you in an uncomfortable social position. As their name suggests, payday loans need to be repaid by the date of your next paycheque, so they’re ideal for non-recurring and short term financial hiccoughs.
Once you find a stopgap in payday loans to fix your immediate concerns, you can turn your sights onto a more long term solution. Revaluating your budget is a necessary step. A well-balanced budget should provide you with the resources to cover unanticipated bills and repairs. Financial advisors suggest roughly 60% of your income cover monthly needs, like rent or mortgage payments. The remaining 40% is how you can pay for surprise expenses, as you should distribute that amount of your income evenly into savings, RRSPs, debt reduction, and pocket money.
If you realize your 40% isn’t enough, then it’s time to speak with a financial advisor. They can teach you how to rearrange your finances to better support your current needs. With a little bit of help, you can learn how to budget with the best of them. Until you find it as easy as riding bike, a payday loan can help you out in a pinch.