“The invention of the micro-loan was a big surprise to me. Who would have guessed loans of less than $20 made to poor people in undeveloped countries could create thriving local economies? And, even more surprisingly, that they more reliably pay off their debts than the wealthy of the world.” Joel A. Barker
It is becoming increasingly evident to people who currently live in our global village, that while wages are stagnating, prices of goods and services are skyrocketing. Donald Trump, the 45th president of the USA, has weighed in on this topic by threatening to impose a 45% import tariff on all Chinese goods imported into the USA. While I believe his rationale behind the threatened import duty is to grow the manufacturing sector in America, the actual result will be to drive up the prices of the goods that the average manufacturing industry worker will purchase; thereby, making it impossible to make ends meet.
Cutting back on your monthly expenses
The rational response to rising costs and a stagnating salary is to start trimming the fat off your budget. In other words, cut as many extras or nice-to-haves out of your monthly budget. A good example is to cut down on the number of times per month that you and your family eat out or order take-outs.
What happens when you get to the point where you have reduced your monthly expenses right down to the bone, and you are still not making ends meet? Well, the only other option is to find a way to increase your income. You can consider taking on a second part-time job, build up an online income stream, and you can speak to your boss at work about ways to earn an increase in your wages.
It stands to reason that there is going to be a gap between the time that you start earning extra income, and when you get your first pay check. How do you cope in the meantime? Even though in a perfect world, it is not a good idea to take out a microloan such as one of the car title loans San Bernardino, it might be worthwhile considering applying for a loan to get you through the last couple of days of the month before you get paid.
However, I believe that it is vital that you consider your options very carefully before you apply for any additional loans. In order to make ends meet in the medium- to long-term, it is crucial that you do not get stuck in a debt-trap.
Borrowing money from any financial institution or business authorised to grant loans will add extra costs to you monthly budget in the form of interest and levies on the money. Furthermore, you will have to pay the loan capital back over a period of time. Consequently, you will end up having less money to spend every month if you are paying back one or more loans.