Cash Crunch at the Month End

avatar

I had never witnessed Cash Crunch until this month as because I was pretty good at managing my funds throughout the month. But this month was a little different and I am facing the Cash Crunch in the last week of the month. This is mainly because this month, I have to pay my Kid's School Fees and other Adhoc payments, and this way I am out of cash.

image.png
PC: Pixabay.com

The good thing about my situation is that I mainly park some extra money every month for situations like these and thus I have withdrawn some from Fixed Deposit and thus till now I am okay in completing the month. I think similar things will happen in next month too because I have some Medical Insurance and Life Insurance to be paid which I have not thought about.

Though I have a Recurring Deposit running every month for Life Insurance I missed the Medical One and thus now I need to dig in my Fixed Deposit to get some money. I am just thinking, that it's always better to keep adding in FD at the end of the month if you have some extra money so that in the times like these you can continue your work without having to worry about it.

I am also using Credit Cards for situations like these, though I am not overspending it for groceries and other things Credit Card is useful at the end of the month when I have to pay it after 30 days of purchase. In my case, I never spend more than 5% of my credit card utilization; thus, I can continue with the cash crunch at the end of the month.

How do you handle the Cash Crunch at the end of the month?

Posted Using LeoFinance Beta

neoxian hive-engine proofofbrain vyb cent archon ctp india leofinance
0
0
0.000
11 comments
avatar

I have an emergency fund to cover episodes like these, but it took a hit this year because of major oral surgery.
So far, it is still liquid, just about 1/4 of what it was.

It is still lower than my comfort zone, lol, but it will take time to refill it.

I try to avoid credit cards as much as possible and limit them to what I can pay off the following month.

I try hard not to pay any more interest than I need to.

I hope your situation turns around quickly.

!CTP

0
0
0.000
Reply
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
Reply
avatar

Seems like you're doing everything right and will weather the financial emergency just fine. We use our credit card to buy groceries and stuff but pay it off all the time so we don't have to worry about the extortionist interest rates. We just use it to get the points and then when we have accumulated a bunch of them we roll them over onto the next bill.
It's actually been quite some time since we experienced an end-of-the-month cash crunch. And that's because we don't have any child-rearing expenses anymore. Not for a long time.
!ALIVE
!CTP

0
0
0.000
Reply
avatar

Yes my friend things will get tighter as inflation increases, find as many ways to increase your incomings you can, things will not get better for awhile we haven't even hit the famine year yet.
@codingdefined
Thanks for sharing on Listnerds😎
!ALIVE
!CTP
!LUV
!BBH

0
0
0.000
Reply
avatar

I also had to pay a lot for LIC this month. I use the flexible FD feature that ICICI bank provides. We can withdraw the money whenever we need extra. Otherwise it can stay in the FD.

Wow your daughter is starting her school. That's nice. All the best.

0
0
0.000
Reply