How to manage or escape from getting financially broke at the month end is this article all about. I prefer the word ‘broke’ in terms of financial breakage or otherwise termed as month end finance crisis.
There are two specific reasons for me to write this in the month beginning
- only when you save in the month beginning you’ll not be broke in the month end.
- I can see a lot of people getting broke right after the first week of the month itself.
So, how to cope up with this. Money is the basis of everything in today’s world, is the only weapon we’ve got to survive in the world. A few ways to make sure, you don’t get broke at the month end.
1. Plan it out:
Make sure the digits of your expenses is always lesser than that of your income. Make a chart for your expense, make sure you list out every possible expense you may face for the whole month. Now allocate a percentage of your income to each of the expense. Finally, there must be at least a 10% saving. If you find the grocery prices to be on a hike that month, cut down your cab charges and use a public transit to tally the amount. This way plan your needs and expenses so that you will have a clear view on the management of your income and won’t be broke at the month end.
2. Prioritize your needs:
Stick on to the basic principle: -spend only for your needs. Don’t spend the income lavishly. Spend for your necessity and not for a social status. Buy or spend on items which are really required at the hour. For example, if you are a person whose career is based on a laptop or computer you can spend much on getting a high-end laptop. But if you are gonna use it only for normal purposes skip a high-end model pick a model which suits your budget. So this way you’ll be able to cut down the unnecessary expenses and save it throughout the month.
Invest your money somewhere sensibly. If not, at least put it in your bank account and get the interest amounts. Investments are also an equivalent of savings. They can be used in later times of need. If you have the spare money or your excess money in hand, it’s human tendency to spend it, so avoid it by saving or investing it in the right way so that it’ll help you at the month ends.
4. Choose the correct option:
Yes! Always choose the option which suits you. Right from the recharge plans for your mobile phones to your insurance package, make sure you make the right choices. Don’t overload yourself with so many EMIs at a go. Many do invest in chit schemes, make sure you pick a plan or scheme which will suit your income and not burden you. So always consult a financial adviser before getting your money involved. This will greatly help you manage the income and make sure all your money does not go away in EMI’s and insurance schemes.
5. Use the spare time wisely:
There is a saying ” learn a craft or self-art and be worry free for rest of the life” because these crafts may not only be great stress busters but also prove to be a great source of money. I know a lot of women who make terracotta and handmade jewelry and sell it in their workplaces. So use your spare time not only to leisurely sit back but also to make some money. Leave the earning part too, a self-craft will bring you Joy and also will make you look unique. It can help you with your daily life, for example when you learn to stitch, you have a pass time and also the money you give to tailors also get cut down thus you can save money and at times you can earn out of it also.
6. Enjoy within limits:
Here comes the most important point. Last but not the least, enjoy your life. But make sure these enjoyments don’t take a big toll on your financial aspects. Make economical and budget cutting plans. Limit yourself with only one or two movies a month. I can understand many of you saying out that life and money earned is for us to enjoy. Yes, it is, but everything is good within the safe limits. Once you spend more money on your enjoyment and pleasure activities they may cause you a big loss in the future.
One more important suggestion would be that don’t lend nor borrow money. Both of them can potentially destroy your savings and may make you suffer at later times.
So these are the tips or hacks I use to make sure my purse doesn’t go empty in the month ends. I am a college student and a late teen, yet a financially independent person who manage the little income I get in the most right way so that I always have a fund ready to meet the emergency situations life may put to me. So you too make sure you are well prepared for the twists and turns financially you are about to face. You can face it with ease if you have a notable saving.
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Paramedical student at Madras Medical Mission. A voracious reader, having a lot of interest in writing and very good at putting myself in other’s shoes. I do have a great passion for cooking and traveling.