Payday loans should only be used as emergency loans. Too often people get trapped by them, the loans are expensive and difficult to pay off, so it is much better for you to try to avoid the need for this kind of loan altogether. There are a number of small, easy things you can do to prevent yourself from ever needing a payday loan in the first place.

First youll want to take a look at your spending versus your income. You shouldnt be spending more than you make, no matter what the limit on your credit cards. Its good practice to try to put away some money with every paycheck.

Next youll want to look at what youre spending you money on. Are you buying coffee every morning? You could probably make it yourself at home for pennies plus you wont have to tip the barista. If youre spending $5/day on coffee and buy coffee 22 days/month then you are spending $110/month on coffee!

Try to curb your impulse buying. Sometimes you feel like you want something, only to buy it and find youve changed your mind a few weeks later. Its called buyers remorse. Delay the purchase, if you still want it next week, buy it then, after youve allocated some of your resources towards that purchase. And then theres always the old adage when it doubt, do without.

If youre really strapped for cash, you might want to consider selling something you own on eBay, or at the local consignment shop. If you have a lot of things you can bear to part with, you might want to have a garage sale. Typically, you will probably get a better price for collectibles on eBay or at a consignment shop. Selling unwanted items not only frees up space in your home, but also can help to bring in some extra cash.

Dont be embarrassed to use coupons. Many restaurants are offering coupons to entice customers into their establishments. These can significantly cut your restaurant bill, especially if you have a buy one, get one free dinner coupon. You can also find coupons for haircuts, home services (such as a visit from your plumber), and of course, the grocery store. Clipping coupons can cut real money off your grocery bill, especially if the store offers double or triple coupons.

You should review your home services. How much do you pay for your cel phone? Do you really need to have unlimited text messages? You can probably get a cheaper package, just pay attention to what your contract says about changing your plan. How about your satellite or cable package? Do you really need all the movie channels or can you get away with the local free tv?

Do you really need to have the latest, greatest thing? Is your current cel phone good enough? Or do you need to buy a new one just because it came out in your favorite color? Consider the free phones when youre re-upping your cellular contract. Theres a lot of stuff to be had, and you probably cant afford everything. Its a matter of prioritizing what you want and saving up for it.

When youre trying to economize, dont skip maintenance items because you need to have a new something. It will cost you more in the long run if you avoid the dentist for a few years than it would if you went in for regular cleanings. The same goes for your car. Oil changes and other basic maintenance are important and can help keep you from more expensive repairs.

A fun experiment to try is to promise yourself to buy only staples for a month. By doing this, youll be able to see how much money you throw away on frivolous things. You may feel a little deprived at first, but after a short time, you will be able to weed out what you really want from want you think you need.

Another really good habit to get into is to set up a savings account and automatically deposit a set amount each week into that account. Even if its as little as $5 a week, youll be able to save up $260 with no effort on your part. If you have a regular job, you can set this up with direct deposit, and you wont even see it happening. Ultimately, you want to try to have between 3 and 6 months salary saved up for emergencies.

Finally, be a smart consumer. If you really need something, then save up for it, or buy it if you have the cash. Think about your purchases. Do you really want that item? Will you still want it in a week, month, year? Is it worth what you will be spending for it? Its important to have good financial health. Dont spend more than you make. If you dont already have a savings plan, start saving money. Developing good financial habits can keep you from needing a costly payday loan in the first place.