Broke at the end of every month? Here’s how you can avoid month-end money crunch

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Your salary has been credited — This text message is enough to make us smile for the initial 20 days of the month. But, how’s life after that? As the month-end comes near, we start restricting our expenses because perhaps till then, we have exceeded our spending limit.

Month-end money crunch is a reality which we generally fail to escape from. To avoid this, Money9 brings some suggestions on how you can avoid the month-end financial crisis.

Always make a budget

Start by making a budget at the start of every month and stick to that. It may sound cliched, but, this practice will make it easy for you to allocate funds and spend wisely.

Set savings aside

As soon as you receive your salary, the first thing you should do is setting aside your savings in another account, so that you don’t end spending all your salary.

Track all your expenses

Do not spend blindly. Track your expenses, daily or weekly. This way, you know where you are spending extra so that you can avoid it in the next month.

Don’t miss any due dates

Even you would not want to pay penalties and late fees. To save yourself from any extra unwanted expense, make sure you do not miss any deadlines.

Shopaholic? Avoid credit cards

If you tend to get attracted easily, avoid carrying credit cards. If you carry credit cards, you may overspend and the credit cards bill will definitely give you a headache.

Emergency funds

Every month set aside an amount to an emergency fund. At the time of the money crunch, this may help you in surviving with limited funds

Assign priority

When you make a budget, assign priority to different expenses. While you do that, you know that you are not overspending on things which are least important to you.