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Addictive or vicous?

I would rather term cash advancing as vicious rather than addictive. You have your streams of revenue that you use to fulfill your expenses on a periodic basis. Most of the expenses can be bucketed with a periodicity of being weekly (like Grocery), monthly (Rent), quarterly (Car Maintenance), semi-annual (insurance) or annual. A person goes in for a cash advance to meet certain extra expenses for the current period (generally this is a short period - week or month) from his/ her future earnings. What is not realized is that you need to meet up with your liabilities (expenses) in the next period as well and most likely you are going to be short on the revenue stream in the next quarter because you have already eaten into that by using the cash advance!

What to do? Take a cash advacnce next period as well..You just entered one vicious cycle of cash advancing..

I like this adage, "stretch your feet as much as your blanket can accomodate". Here feet stands for expenses and your income is your blanket.

Learn more about this author, Akhilesh Mittal.
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