Why Charlie Sheen asked for a pay advance at work.

charlie sheen loanMay 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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