Easy tips to avoid a cash-crunch in March

Many of us face a cash crunch towards the end of the financial year. Following are some easy ways by which this situation can be taken care off.

Plan Ahead- Planning is the key to every problem. If you have already faced with such a situation last year, it is advisable not to repeat the same old mistakes. Learn to plan and budget your expenses. Prepare a budget on a monthly basis and try to stick to it.  In case there is a discrepancy in the planned budget then try to make up for the losses in the coming month. Also your main goal is to maintain a healthy annual budget. If you are able to maintain discipline as regards to monthly budget then it is quite sure that you would not have problems at the end of the year.

Go Regular- Many people due to lack of knowledge lose upon interest by investing towards the end of the financial year. If they make an investment towards the beginning of the financial year then they would get regular returns. If this is not possible due to some reason then they must make regular investment to their PPF. If you make one investment every month then you can make a maximum of 12 investments into your PPF in a year.

Be Thrifty with the Salary and Bonus- If you are one of those who do not believe in continuous investment then it is advisable to be thrifty with the Feb. salary and if there happens to be any bonuses in your case. It’s time for you to look into your EPF and other sources of investment which give tax relief. You must talk to your CA in order to look for maximum tax benefits. If nothing strikes then they must look on to save from other sources such as delaying a pre-planned holiday or a vacation. There are other ways as well to save such as cut down on leisure activities and activities which are infrequently required.

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