A payday loan can be perfect for someone who needs emergency funds quickly, but it can also be incredibly expensive. High interest rates can cause payday loans to quickly drain your savings account, an issue that is only made worse if you have excessive spending habits. It’s a little-known fact that those who don’t have a lot of money tend to get careless when they do have funds available to them. Many find themselves living beyond their usual means, and when the money runs out they are in worse financial shape than they were in before.

While keeping a separate savings account for payday loans is a good first step in controlling excessive spending, there are still a few things that people can do to make things easier for themselves financially.

1. Stay away from extended warranties for electronics and appliances. A salesperson will always make it sound like spending a little extra money on an extended warranty is a great investment that you simply cannot go without, but it’s still extra money that can be used for other purposes. It may sound cynical to say so, but it’s a salesperson’s job to get customers to spend that extra money. For most new electronics and appliances, the factory warranty should be enough to cover anything that could go wrong. If you must purchase an extended warranty, a good rule of thumb is to never spend more than 10 percent of the purchase price on a warranty.

2. Just because you have insurance doesn’t mean that you won’t be paying for deductibles or service charges. While you should always have car or health insurance, you may want to forego buying insurance when you don’t need it. The money that you would be spending on insurance each month can go into a savings account where it will eventually turn into a nice nest egg that will keep you from relying too heavily on payday loans.

3. While you may want to invest in pet insurance, it shouldn’t be necessary if you manage to keep funds available to help your ailing pet. As with other forms of insurance, pet insurance needs to be paid for monthly. The money that would go towards keeping your dog or cat insured could instead go into a savings account. When your pet does get sick, injured or old and needs specialized care, you will have some funds set aside that will help cover the costs of treatment. That money can also be used for other emergencies that are likely to arise.

Paying for expensive insurance on things you don’t need or purchasing extended warranties on reliable appliances is often not wise for those who are trying to save money or build a nest egg. They may sound like a good idea at the time, and any good salesperson will make it sound like a great idea, but you should always ask yourself if it’s really necessary.

Being able to easily pay for damage that may occur to a new Blu-ray player may make that extended warranty seem worth a purchase, but your priority should be to build up a savings account capable of covering at least six months of living expenses if you should encounter financial difficulties. It really is the best way to keep your debts from spiraling out of control.

Whether you are practically living in poverty or you are a part of the wealthy one percent, you should always pay close attention to where your money is and how it is being spent.