There is plenty of information which can be found online about the possible options that you have if you find that you have run out of money, but you still haven’t received your paycheck. This is important information which may be able to help you survive during these uncomfortable circumstances, and you should consider all of your options. The advice for those short on cash before their paycheck arrives is usually along the lines of the following:
- Contact friends and relatives that may be able to help you out.
- Sell things you no longer need or use.
- Pawn some items.
- Look for quick cash earners like babysitting.
- Cut back on everything except essentials.
- Contact creditors and see if you can get a delay on payments.
- Collect and recycle scrap metal.
- Use any gift cards that may be stored away.
- Take out a title loan.
- Get a cash advance on your credit card.
These are just a few of the common tips that people suggest. Your actual options will greatly depend on your personal circumstances and how much time there is until the next paycheck arrives. What isn’t often expressed is the things that you shouldn’t do when you find yourself in this situation, and the things you shouldn’t do may be far more important than the things that you actually do. Here are a few of the things that you want to avoid doing when you find yourself not having enough before the end of the month:
Don’t Be Relived When The Check Arrives
Most people are so happy and relieved when the paycheck arrives that they stop thinking about everything and simply start living like there was never an issue the week before. This is absolutely not the thing to do. The fact that the situation came about in the first place means that there is a major financial emergency which needs to be addressed. Not having enough money at the end of the month is only a symptom of the underlying problem. The reason why this happened need to be addressed, and addressed quickly to avoid the same situation happens again.
Don’t think You Have Your Full Paycheck To Spend
When the paycheck does finally arrive, don’t assume that you have the full amount to spend. When you were short of money before the paycheck arrived, there is a chance that you had to borrow money or deplete your stockpile of food. Whatever costs you had to incur to make ends meet, they need to be repaid right away. This means that your actual paycheck will be less than usual. If you fail to take these costs into account, the greater the risk that you’ll find yourself in a revolving “can’t make it to payday” situation.
Don’t Assume Things Will Get Better
Don’t make the assumption that things will get better and there won’t be a problem next month. That assumption will almost always be wrong and create a situation where you find yourself in even deeper financial problems. Instead, address the issue head on and come up with a plan of attack by creating a better budget and figuring out a way to increase your income through side ventures before you find yourself right back in the same place. Things rarely get better unless you take an active role to ensure that they get better.
Don’t Make What You Did Your New Emergency Plan
Once you have survived once not having enough money until your paycheck arrives, you begin to form a basic plan to enact if such a situation should occur again. This is a terrible idea. The fact is that the more times you have to make due without money before your paycheck arrives, the more difficult it’ll get, and the more money you’ll end up losing in the process. Just because you were able to survive once doesn’t mean that it’s a good idea to try to do it over and over again. Don’t let the situation become a monthly or bi-weekly habit. Instead, take the time to figure out a plan and make the difficult choices so that you never run short again before your paycheck arrives.
More often than not, avoiding some common actions that many people take when they first find themselves in a “no money at the end of the month” situation can go a long way to helping you not get deeper and deeper into a financial mess. So while it’s important to research all of your possible options on how to survive such a situation, don’t fail to take the often difficult, but necessary, steps afterwards to make sure that it doesn’t become a common occurrence.
To help those that might find themselves in a tight spot this holiday season, we are giving away $100 as part of our ongoing series of themed personal finance giveaways. There are plenty of ways to enter and you will have the opportunity to learn about a number of other personal finance blogs that may be suited for your current needs. At the very least, leave a comment about what you have done (or would do) if you found that you didn’t have enough money before your next paycheck arrived as this may be of great help to others that are going through this situation.
Jeffrey strain is a freelance author, his work has appeared at The Street.com and seekingalpha.com. In addition to having authored thousands of articles, Jeffrey is a former resident of Japan, former owner of Savingadvice.com and a professional digital nomad.
I’ve ended up in this situation a couple of time from being overeager to send a big debt payment in. When this happens, I start shopping the pantry, making meals from what we already have on hand.
I’m currently trying to sell some things that I don’t need, mainly clothing items, and I’m finding that it’s not as easy as it sounds. I’m tempted to just take everything to goodwill like I have done before, if I didn’t need the extra cash.
Although my emergency account has dwindled greatly in the last year (mostly from helping out relatives), I am fortunate that I always have a little bit stashed away for these emergencies but I tend to just get really creative and shop the pantry, or look for leftover giftcards that I tend to save for situations such as this.
I would stop spending! Use the food in my pantry; limit driving to work only; and make sure it didn’t happen next month.
I was in VERY close quarters when I was at University, and had several times that I didn’t have any cash, and no opportunity to get any for several more days until payday. Those times, I breathed in deeply, pulled up my socks, and ate noodles.
Now, things are not quite so dire. I’ve saved up an emergency fund, and am always assured of having my basic bills paid. But…I still cut it close on my spending budget sometimes. I pay my savings first, debt repayment second, and then spend what’s left.
Sometimes I still look at my bank account, and say ‘Noodles. It’s Noodles until Friday.’ And while these days there’s more in the pantry than just noodles, I eat from the pantry even if it’s not very tasty or exciting. Because I remember when I had no other choice.
When I was growing up the weekly wage often ran out by Wednesday. Thgere were certain meals we had to fill that gap. Two of my favourites were onions peeled and boiled and the liquid thickened with flour, served with potatoes boiled and left whole.
I suppose there were enough potatoes and bread bought to fill this space. I do not remember money being borrowed, that would only leave us extra short the next week!
Sorry, the second meal was onions fried and eaten with bread. This was when we had no potatoes, the only time I remember having neither we ate porridge!
Yes borrowing only makes the whole problem worse.
I took a title loan when I needed extra cash, and I made sure to make paying it back my first priority. I avoided paying unnecessary interests by paying my money back early, and I only borrowed as much as i needed.
Great Article, very informative. Very true that the next paycheck is not the only solution. Treat the problem not just the symptoms!