Beating The Month-End Money Crunch

Even though a majority of the millennials earn minimum in 5-digits, most of us end up in crisis or to be more precise, broke. With plenty of resources, skills, education and everything that ensures a handsome inflow at hand, we some-how lack one skill which manages this in-flow. Managing money seems harder than earning money these days. Managing expenses, maintaining a budget, savings, investing, growing money, all these need a plan and this is where the millennials lag. As the month-end approaches, the money crunch grows. The visits to cousins and friends become often (for borrowing money) or now that technology has our back, we depend on credit cards spending the money we have not yet earned. What’s the solution then?

We have come up with some of the most important things people must consider in order to avoid any month-end crunch. As a thumb rule consider investing in a few dividend-paying mutual funds like Axis Long Term Equity Fund provides a consistent surplus cashflow, thus allowing you to beat the month-end crunch!

Here are a few more easy tips & tricks to avoid the CRUNCH!

  1. Eat cheap

While paying a visit to expensive cafes and restaurants is alright occasionally but making it a habit is not good for your pocket. Frequent dine-outs or eat-outs can prove to be money eaters. The best solution to this is to make food and drinks at home. This will not only save you some major amount of money but will also help you in building wealth by investing it.

  1. Automate your budget

To be more precise, you must use high-end technology to your best advantage in automating your expenses and budget. To use it to the next level, you must automate your savings and investments even before you get hold of them. there are a lot of apps these days which help you do so.

  1. Pool car or switch to public transport

Owning a car is one thing, misusing it is another. We all own cars but only the smarter use it optimally. In this race of coming first, we often forget that there are other means as well which put your through the finish line at the same time too. Switch to public transport and it will save you a great deal on fuel expenses. Plus, it will be your little contribution towards saving the environment. Most metro cities are well-connected by metro, use it and utilize your money in investing.

  1. Go home-made

This is not a repetition of the first point, rather it means totally eating at home. When we order on a daily basis, it seems little but the amount by the end of the month sums up to a considerable value. Ordering your food should not become your habit or you end up losing a big chunk of money. Try and schedule your day in order to take out time to cook and exercise, attribute to a healthy lifestyle, physically, mentally and financially.

  1. Go SIP way

Start investing. There are no two ways about it. Even though this post is about saving that extra bit in order to avoid month-end crisis, but now that you are already making an effort, stretch a little more and save a 500 rupee note for investing. Like mentioned above, automate your savings and investing.

This may seem a little over the edge now but will prove to be a blessing later on. You will have created wealth with this small effort today. This corpus can be used as an emergency fund or as a down payment to your home or wherever you want. Start investing.

  1. Have a go-to fund

This is over and above your investments. From the day you start earning, maintain a habit of saving some from your household budget or your pocket money or where ever and put that money in your ‘Go-to’ jar. You may save this money in physical form or in your account but ensure that it is available at the time you need it the most. Liquidity is a major concern in times of emergencies and unplanned needs. This credit quota will keep you ‘money-ready’ at all times.

Whatever you earn, you can always manage your expenses within your limits and still lead a decent life. Going into crisis every month-end is not an option. Budget your finances accurately and invest in order to grow your money.

Smart investing, start investing!