The thing about cash advances is that they're pretty addictive. Once you get one, and you see how easy and fast it is, you'll pretty much do it over and over again. Sure, it was okay when the first time was really an emergency, like a family member landed in the hospital and you had no way to pay the bills. The second time, you're short on your car payment. Important, yes. Urgent, not so much. The third time, you're just really desperate to get that new pair of designer shoes that came out (They're just my size, and they're the last pair!), or even that new set of golfing clubs (Come on, they were 10% off! That's bargain!) Important or urgent? Forget about it.



So yes, a cash advance is a good thing, even better if you're living in a place like Canada where cash advance companies abound. However, like all good things, there must be moderation.

Here are 5 things that you must have in order to make sure that you're taking out a cash advance was a sound financial decision.

1. Make sure you have a good reason - True, this is quite a subjective reason, but let's use a little common sense here. Do you really need to take out a cash advance that has a really high interest rate for a pair of shoes? It's not to say that this is entirely wrong, but remember, it's pretty much unplanned and uncalculated spending that got you into this mess into the first place. Who's to say that the one pair of shoes is going to stay as one pair, or, God forbid, stay without a matching wardrobe?

2. Make sure that you have a sure and definite way to pay it back - Come on, you won't march out into a battlefield without bullets right? Same way, don't take out a cash advance, especially a large one, without a way to repay it. If it's a true emergency, at least make a backup plan with friends and family. True, it might get a little uncomfortable and awkward, but at least you won't be paying through the nose afterwards.

3. Make a budget, and stick to it - This is actually easier than it sounds! Keep track of your household and personal expenses for a period of time, then calculate it against your salary. If you're coming up with a positive difference, well and good. You've got disposable money on your hands, and, most likely, you'd be prudent enough to know what to do with it. A small treat now and again is a good thing. However, if you're coming up with a negative difference, time to rethink your spending habits!

4. The small things add up! - If you think that small habits (you know, a couple of sticks of cigarettes here and there) or perhaps a dinner in an expensive restaurant once in a while is no big thing, think again! If you sit down and calculate just how much these "small things" are actually amounting to big things, you'd be surprised!

5. Old school is still the best way - And what is the old school way? Simple! Save your money! You'll never know what lies ahead, and what curves life is going to throw at you, so best be prepared for smooth sailing!