taking stock

If Financial Challenges Arise

Balancing your budget helps insure you are able to meet monthly expenses and build savings. But this can be a challenge, especially when unexpected costs arise. If you find yourself struggling just to pay your basic expenses, like your rent or mortgage and food bill, what’s the best thing to do?

1. Look for ways to increase your earnings and reduce your expenses.
2. Use a credit card to cover expenses you can’t afford outright.
3. Take out a short-term payday loan.

If you guessed “A,” you’re right. Using credit or a short-term loan to cover day-to-day expenses may leave you more financially vulnerable than ever. The interest you pay for these products adds up and can lead to serious debt. Increasing your income and/or cutting back on spending makes it possible to free up money for what you owe and to build savings without added risk.