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 May 25, 2011
TMZ reported
that at the beginning of his final season on Two and a Half Men,
Charlie Sheen
requested $10 million of the pay he was to receive for the season up
front. The contract between him and Warner Brothers stated that he would
then pay back Warner Brothers a payment of $769,230.77 after each
of the first 13 episodes. The article went on to report that
Sheen had received pay increases equaling
781% over the last 10 years ($160,000.00 to $1.25 million per episode).
Payday loans
Have you ever been short on cash and needed an advance? Perhaps one of the
worst things you can do is to go to a payday loan office. Yes, you will
receive money right away but the interest rates they charge are
outrageous. This example from Wikipedia says, "For a $15 charge on a $100
2-week payday loan, the APR is 26 × 15% = 390%". Even
Charlie Sheen didn't pay more than 4% on
the $10 million he borrowed.
Another option is to approach your boss or human resources manager for a
payday advance. Most likely your HR representative has been approached
before about this subject and will have a written company policy on the
matter. Some companies are more lenient than others, and you may be asked
the reason for the advance. Some companies reserve paying in advance only
if the employee is facing a financial emergency. The advantage of getting
an advance from your employer is that you will most likely not be charged
interest.
Bigger problem
The news stories never said why
Charlie Sheen asked for the advance.
However, asking for your pay in advance usually indicates you are having
money troubles at home. The truth is there are plenty of times a financial
crisis comes up because of a lack of planning and budgeting. Even if you
are not spending money on luxuries or desires life seems to have a way of
getting your money. The car breaks down, the kids need shoes, or the gas
prices went up. A better plan is keep track of your expenses and income,
plan for out of the ordinary expenses, and write a budget for the next
month.
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