I few of us have been bitten by the bug, not once not twice, severally its a sure sign that you need financial 911. I listened on radio the other day a financial consultant speak about the dangers of taking an advance on your salary, for the regulars at the HR office come 16th of each month this one is for you and for those who need to know why its a bad idea to take the advance, this one is for you too.
The major reasons that most people take advances are:
- AVAILABILITY: Its the easiest option to getting fast cash when you are strapped, not many of us have other options
- CONVENIENCE: Its rather straight forward to apply for it, doesn’t take long either and you understand the process
- LIFESTYLE: Damn I looked good in that suit, those red heels will be amazing, i need to get them fast before someone else
The advance is like a drug, though it will give you an initial high, it will soon wear off and you will have the chills, major signs of withdrawal! Here’s why to just say NO
- You get tied into the habit of doing it month in month out. You may lie to your self that the next month you will have a better handle on things but really that is you being mythical to yourself. Say No
- You are actually taking a loan from your employer which you have not yet earned. Think about it you signed a contract to get paid at the end of a full working month. The full working month has not ended by 17th, so actually you are not keeping your end of the bargain. Say No
- You may think that the advance will help you pay some bills mid month but really the chance of you doing something completely different with your advance is very very high. You will get easily lured to the new shoes or the new suit or the trip out of town. Derailment will be at an all time high at this point, watch it! Say No
So what are the options really when you think about it? How can you get out of this rut?
- SACRIFICE: Its like they say when loosing weight, no pain no gain. You have to prioritise the critical things that you cannot do without monthly. New heels are not a necesscity. Critical items are: busfare, rent, house bills and food. The rest is something you can do without, such as you dont have to feel bad when you dont contribute for a funeral expense if you really dont have the money you can help in other ways, you don’t have to meet up for coffee at java neither must you chip in to BOGOF for pizzas on Tuesdays. You may have to lay low for a while, and if your friends don’t get it then maybe they really arent your friends. In short, be REAL to yourself.
- PLANNING: believe it or not planning helps in a big way, because you are able to know how much you have come end month and how much you can spend. At no time can you spend more than what you have because you will not have it. You have to be strict when it comes to planning. In short, be REAL to how much you actually can spend.
- SAVE: We all need savings. If you’ve ever had a personal medical emergency or death in the family and found yourself calling for a harambee then you know exactly what I mean. Its critical to put away part of your salary monthly as savings for emergencys. Paying money into your savings should be like paying a bill and should be non negotiable. In short, be REAL to your future.