Money money...

A good thing to happen today was that some money due to me from the company I used to work for, was credited to my account. In the midst of hectic budgeting and keeping track of how much to pull from other accounts and how much to borrow and return, this was just great. At least a bulk of my financial fix is remedied while we struggled to get cash together for the new house.

In a week, I’ll be set to pay the deposit and relax a bit knowing the rent money is there, at least a big chunk of it.

I’m not saying all of us should wait around for windfalls, but people, if you’re making the move to a new house, please ensure all outstandings owed to you are settled now. This takes the pressure off in a big way; all of your earnings after that will only cushion you further.

In the absence of any outstanding cash inflow, however, there are still ways to manage your finances before you start signing cheques.

First, get the latest bank statements from all the accounts you have. I have three, of which just one is really active. I had no idea one of the remaining two had some cash in it, while the third used to be a salary account. Get a correct picture of how much money you have on you. You might also consider using a passive account to handle only the house money, so you don’t end up mixing those payments with daily living expenses. Ask your partner (if there is one) or a co-investor (if there is one) to do the same. Write down exactly how much money you can spare immediately.

Second, look for sources that will yield money right away. Maybe now is the time to tactfully remind that friend/ family member/ whoever else who mooched off you recently, to return your money since you need it desperately. Keep a track of how much you get through these channels.

Third, and this is a good idea if you’re purchasing your own property and need to keep cash in ‘black’, is to make a list of about twenty people who you can ask for money. This is a workable solution my husband’s boss told him to consider when we were looking to purchase. Don’t be flabbergasted when I say ‘twenty’; go ahead and put in as many names as you can. Why so many? Because you can ask for small loans which they might not refuse. You do the math: are twenty people you know well likely to refuse you a loan of Rs 5,000 (or a bit more) each? Twenty times five is 100, so that’s Rs 1,00,000 arranged just like that. If it’s a close friend, you can maximise the inflow by asking for Rs 10,000 or even more. This is a lot easier than asking big loans off about two people.

Fourth, make a list of people who will be able to float a big loan for you. A close friend who’s got the cash stashed away, a family member who wouldn’t hound you for the loan…don’t just sit there reading, make a list.

Fifth, if you’re purchasing a house, approach your bank with all the documents at your disposal to know your exact loan eligibility. Try and work out an in-principal approval (which is valid for three months) so you know how much you owe the bank as well.

Sixth, and this is not always easy to do, but try it anyway. Set aside all those clothes, utensils, furniture, sometimes electronic goods, and see if you can sell them off. Sell off all the newspapers, magazines, books nobody reads, empty glass and plastic bottles to the raddiwala. Gold jewellery you are not about to use can also help, but I would hang on to the gold just yet. It’s really your call, though. The money you raise can help in smaller payments, or simply tuck it away till you can put it to good use.

Seventh, and this is something I would do, is to try and work from home for extra cash. In fact, the money you can make from this source can help you a lot when making your monthly EMI payments to the bank, or settling a loan, or simply to pay the rent. This way, your regular job can help you live comfortably.

Eighth, get cracking.

Next: Getting a good estate agent.