Living on a single source of income seems to be very challenging while prices are going through the roof. For some people, it is less than an ideal situation. Well, you like it or not, the life does not always give you what you desire. You will never stop living rather you will find brilliant ways to manage your finances.
To meet all your needs including unexpected expenses, you might take short-term loans. However, not all short-term loans are affordable, as you have to pay back the whole of the debt at once. You can find yourself stuck in a tight corner even if you borrow. You can avoid it if you take 12 month payday loans from direct lenders. Though these loans come with a high rate of interest, you do not have to pay the entire debt at once. These are instalment payday loans, meaning you will reimburse your loan in 12 equal instalments. However, you have to be a bit more cautious if you are living on only one source of income. Following tips can help you manage your funds:
Set aside for emergency funds
When unexpected expenses catch you on the hop, you feel hacked off. Without enough deliberation, you take a loan that seems impossible to pay back. As a mature person, you know that life is unexpected, so you should have braced yourself for emergency in advance. As you receive your salary, you should set one-fourth of your income aside for a rainy day. If you continue to save money, you will find a huge balance in your emergency account after a couple of months. This approach will not let you get crazy if you encounter a big expenditure.
Set a budget
There is no doubt that you have to be frugal if you are dependent on a single income source. Make a list of all expenses such as commuting charges, debt instalments, food and drink cost, utility expenses, and the like. Make sure that you set aside 25% of your income for emergency funds every month and the rest income will be used toward regular expenses. If your expenditure is more than the balance, figure out what you can leave out.
Make your debt your priority
12 month loans with no credit check from direct lenders come with high rate of interest. If you miss your instalments, late payment fees and interest amount are levied as penalty. Your loan instalments must be the first one on the list. To avoid defaults, it is better if you set aside the due amount every month. If the loan agreement has a clause of prepayments, you should pay before the due date.
Change your spending habits
Your attitude toward money can help you save a lot in the long run. You should think twice before spending a penny. Once in a month, going to a restaurant for meal and the cinema for entertainment is not bad, but regular visits can drain your money. Like other people, you may also try to keep up with the Joneses, but it will result in permanent debt cycle in the end.
Avoid the use of credit cards
Having a credit card is not a threat as long as you use it responsibly. If you do not have enough funds to meet your emergency needs, you can use your credit card. Make sure that you pay the bill within the given time. Otherwise, penalty will be imposed. Use cash for your regular expenses. The best way to avoid the excess use of credit card is to lock it in your cupboard and keep pounds and debit card in your pocket.
Aforementioned tips will not only help you save money but also reimburse 12 month loans with no guarantor on time.