- Personal Finance
Paycheck Runs Out.
What is a Paycheck?
Many people are employed and work for a paycheck which they receive weekily or biweekily or even monthly and so on. 99% of the people survive on paycheck and is about only 1% of the population who do not rely on paychecks but have enough investments or businesses that bring them enough money not to need a paycheck.
Basically, a paycheck is the form by which our employers reward us with wages that they pay for our services and hard work .
Some people work in the private sector and some work in the public sector. Those who work on public sector work to serve the people and they work in government agencies. The public servants are paid by our tax dollars.
Private sector employs majority of the people. These are organizations started by enterpreneurs and are privately run entities.
The Purposes of a Paycheck.
A paycheck is a lifeline for majority of the employed people. A paycheck is a means of survival. A paycheck has the purposes of paying for our rent or mortgage providing shelter for us and our families, buying us food and feeding our families, buying us clothes and clothing our families, paying for education for our children, paying for medical needs for our families and providing healthcare for them, paying for our entertainment bills - our holidays and our vacations. The paycheck also serves us by helping to pay for our transportation costs- our vehicles and related costs of maintanenace, car notes, gas, licensing and insurance.
A paycheck serves to help us get what we need not necessarily what we want. The paychecks go a long way in helping us meet our basic needs.
A paycheck is a payment we receive in return to the wager we have earned by trading our time for dollars.
Spending the Paycheck
The paycheck is our lifeline. Spending the paycheck requires careful planning. Without careful planning, the paycheck does not stretch long enough until the next paycheck. The paycheck may run out before the next paycheck, that is, too much month left after the end of the money from our paycheck.
First, set a side a portion of the paycheck that goes to your saving. One option have this drafted directly from your paycheck. I suggest at least ten percent of your wages should go to this end to build a nest egg for yourself.
Secondly, work a budget that ensures the paycheck goes to pay for the things you need such as your debts- mortgage or rent,car notes,insurance, utility bills and other expenses that are necessary for our survival.
Thirdly, set a side the money for emergencies. For no one knows when these will strike. Unexpected events such as sickness, an accidental damage to our vehicle, our household equipments such ac machine.
Fourth, set aside for charity, donations and offerings to our families, friends, churches,and elected charities.It is worthwhile to give to those in need and less fortunate members of our community.
Finally, all that is left,if any, can go into the miscellaneous fund. This is useful to cover our entertainment, eat outs, unexpected guests and visitors.
What to do if a paycheck runs out before the next one.
Our paychecks should be considered in a well prepared budget to avoid a case of running out of money before the next paycheck.
However, if the paycheck runs out before the next one, one may consider the following prepositions:
First, try to get an interest free loan. This is the ideal type of a loan. No interest during the life of the loan and which is payable by the next paycheck or several paychecks. You can get this from family or friends . Make sure the terms of the loan are clear to all the parties and if possible get these agreements written down to avoid any misunderstandings arising in future which could harm your relationships.
Secondly, if no interest free loan from anyone, try to obtain a salary advance. Some employers can allow their employers who become financially distresed mid pay-period to obtain a certain predetermined percentage of their total wages. This is ideal because it is money you have already worked for or earned. These advances have normally have no interest charged and they are just deducted from the wages to come.
Thirdly, may try your luck on payday loans. Irrespective of the negative publicity they have received, payday loans are less expensive compared to credit cards which charge penalities- late fees, high interest rates. Most payday loans have terms that one needs to understand before signing up for. Read between the lines and the fine prints. Most payday loans do no require credit checks and are easy to apply for. Some have one day approval time and are directly deposited into you account.
Fourth, can do some sales. You can sale the items you do not need to neighbors or online in sites such as ebay and make some quick cash.
Fifth, may take some stuff to a pawn shop or broker in exchange for some cash.
Six, may take up a part time job that will pay immediately like at the nearby construction site, local moving company. Offer to take your old neighbors dog for a walk in exchange of some cash. Offer to cut your neighbors grass at a fee. Clean your parents house and do their laundry for a fee. Offer to baby-sit your uncles kids for a few evenings for a fee and so on.
1. Are payday loans a way to go if a paycheck runs out before the next one?
2. What would you rather use if your paycheck runs out before the next one?
3. What would you prefer to do when you run out of your paycheck before the next one?
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