Payday always seems so far away when you’re already strapped for cash midway through the pay period. So, what’s a person to do when they’ve spent a little too much and payday is still days away?
It’s time to get creative. If your fridge is full and your bills are already paid, then you’re in good shape. If, on the other hand, the only thing in your fridge is a box of baking soda and you’re sure the electric company will be cutting power to your apartment any day now, then you have to get cracking. Here are several steps you can take when you run out of money before payday:
1. Take Stock of the Situation
Don’t panic. You need to stay calm and think clearly to find a solution. What absolutely has to be paid and what can wait? Make a list and prioritize your expenses.
Now, what options do you have? You could get a low-interest loan for low to middle-income earners or perhaps you could sell something. The point is you do have options that will carry you to payday.
2. Talk to Family and/or Friends
Borrowing money from family members or a close friend is often a good choice because these types of loans are usually interest-free. Having said that, not everyone has someone with extra cash to lend. While it’s not fun asking to borrow from a close contact, it could be your best bet for getting out of your financial jam.
3. Sell Something
Do you have any old gadgets lying around that you don’t use anymore? eBay or the Facebook Marketplace are great places to unload that kind of stuff quickly.
Take a look around your house and find items you can part with that others may want. Snap a few pictures and post the ads online. As they say, one man’s trash is another man’s treasure, so get to it!
4. Pick Up a Part-time Gig
The internet makes it easy to make money instantly. From writing gigs to pet sitting and more, you should be able to find something to do that will earn you a buck or two.
If you have a particular talent – painting, perhaps – or you enjoy something – dogs, for example – you can turn it into a money-making venture online. Just be aware to avoid any potential scams.
5. Make a Budget
Running out of money before payday may only be a one-time thing, but if it keeps happening every pay period, you have a cash flow/budgeting issue. You either can’t or won’t live within your means, which will eventually have devastating financial consequences if you don’t figure out a way to do so.
The best way to make sure you don’t run out of money before payday again is to create a budget and stick to it. When you have a budget, you know exactly how much money you have coming in, how much your bills are every month, and how much (if any) you have leftover. Knowing this information is empowering as it helps you manage your finances, so you don’t worry about making it from payday to payday.
Many people struggle with their finances and it’s a common problem to run out of money before payday comes around again. If you find yourself in this situation, following the steps outlined above will help you make it through to your next paycheck.
If, however, you get tired of living this way, be sure you create a budget and stick to it.