Exhausting cash before making it to the next salary day can be stressful. This can happen when we make money decisions emotionally, rather than rationally. For instance, you may get tempted to buy an expensive bag for your mom on her birthday or maybe plan a vacation with your dad on Father’s Day. You may even want to visit your favourite restaurant with your friends over the weekend. All these expenses pile up. When this is coupled with some unexpected expense, it can become way too overwhelming.
Not tracking your expenses or making hasty decisions can push your account balance to dangerously low levels by the end of the month. You may even consider taking a personal loan to relieve your financial burden. But, without proper planning, this can snowball into insurmountable debt.
The good news is that there are ample ways to deal with a month-end cash crunch. Here’s a look at some of them.
Opt for Alternate Finance
Look for a lifetime free digital card, so that you can shop conveniently and benefit from offers. LazyCard by LazyPay is a revolutionary product that lets you carry out financial transactions without worrying about the bank balance. You also enjoy ₹500 cashback on your first card transaction and up to 5% cashback on every purchase. There are no hidden or annual fees and the interest rates are quite low. All you have to do is download the app on your Android or Apple phone, upload the KYC details and send it for review. You will receive the card once the application is verified. Payback the amount within the next 30 days which helps ease the financial strain and keeps you from touching your savings and running into debts.
Buy Now Pay Later
This is a powerful instalment-based tool that lets you purchase products and pay back at a later day with low-cost EMIs. There is no pressure of paying upfront from your pocket or using your credit cards if you are already facing a cash crunch. Neither do you have to wait for your next salary and miss out on exciting deals and discounts.
Do away with multiple OTPs and PINs and start buying products and get them delivered. Shop daily essentials or fancy items from across 100+ of your favourite apps like Swiggy, Zomato and Rapido. You can either shop directly on partner websites or scan and pay at any store. The repayment of the Buy Now Pay Later scheme by LazyPay can be settled within the next 30 days.
Consider an SIP
A Systematic Investment Plan lets you begin with as low as ₹500. It is one of the best forms of disciplined investment in a mutual fund where the amount is deducted from the linked bank account automatically. This can be on a quarterly, monthly or weekly basis. You can increase or decrease the limit as per your convenience. It acts as a safety net to fulfil additional needs or deal with a cash crunch at month-end.
A unique feature of SIP is the rupee cost averaging where you can purchase more units when the market is dipping and buy less when the market is high. The investment risk is low and you can expect significantly higher returns than FDs and PPFs. You do not have to time the market but ensure continuous investment to be able to see exponential growth due to the compounding effect.
Expense Monitoring Apps
It is a good idea to leverage technology in your finance management efforts. Expense trackers help manage money on the go and offer a big picture of your finances. You can see a categorisation of your expenses and get an idea of your purchasing behaviour. Look for apps that will also notify you when you have spent more than a set limit and help organise and discipline your buying habit. Adjust the limits as per your changing financial status.
Cut Down on Unnecessary Spends
It is one of the smartest ways to reduce the risks of a cash crunch. Apps have made it quite a breeze to get food, clothes, beauty services and other products at your doorstep with just a few clicks. Exciting deals and discounts further encourage impulse buying. Try to curb the urge by setting a monthly budget and sticking to it. Avoid spending more than 30% of your salary on miscellaneous needs. Order once in a while but try to repeat clothes, shift to homemade meals or try DIY products instead of costly salon sessions. All of these combined can ensure a cash flow breather and keep you from borrowing money.
Following these tips can help you stay money-ready always. Make the best use of FinTech and BNPL products like LazyPay, switch to smart spending, create an emergency buffer and review your finances frequently to further ensure good financial health.