Tips to Avoid Money Crunch


#1

Know your credit card well to avoid money crunch.


#2

Hi MKumar,

Here are some tips that can help you avoid a money crunch:

  1. Record all your income and expenses and calculate how much money you will have left after paying off all your bills. The expenses may include household bills, rent and living costs, financial products like loans or Credit Cards, travel and for leisure.

  2. Keep a spending diary. It will help you have a closer look on your expenses and will tell you what expenses you can cut down on. Look for online deals or retail deals on groceries and toiletries. Make use of coupons and use the rewards points accumulated on your cards as much as you can for necessary items.

  3. Pay off your Credit Cards and loans, especially the ones that feature high rates of interest. The sooner you get debt out of your life the better it will be. Always pay your debts on time so that your Credit Score is not compromised. If you have missed on any of the debt payments, talk to your lenders and sort out a way to deal with them better so that you do not miss paying your debts on time.

  4. Save regularly. The easiest way to do that is to put away a certain amount into your savings account every month. It is best if you give a standing order so that even if you forget to transfer the money, the bank will do it for you. If you get a pay rise, start saving more. Make sure you are getting a good rate of interest on your savings. Slowly start investing in stocks and property.

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Cheers,
Team BB