Simple ways to break the cash-crunch cycle

Whether they get paid weekly, fortnightly, or monthly, they have a zero (or perhaps even negative!) balance by the time the next payday comes around.

And it isn't just people on low incomes who experience this problem. Some people, no matter what they earn, just have to spend everything straight away.

Their money burns a hole in their pocket and they don't stop until their wallet and bank account are both empty.

Obviously this behaviour is not ideal. One of the main problems is that they probably don't have an emergency fund tucked away for those unexpected car repairs, plumbing disasters or any of the other hiccups life likes to throw at us.

This often means getting into debt to cover these emergencies and even for day-to-day living when the cash runs out. Using credit cards in this situation is a really common way to get into serious debt.

If you can't build up savings then you are also more likely to need to use finance to buy major items, getting into a long-term cycle of debt, and probably aren't saving for retirement or other long-term goals.

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