Struggled during lockdown for money? This post will help you!

With dozens of covid variants emerging so quickly we don’t know when there will be our next full lockdown. Pandemic tested our ability to manage funds during tough times as some lost jobs suddenly and some got lesser salaries. Even with the moratorium announced by RBI, postponement of our EMI was only possible, but we still require cash to run our day to day activities. Our elder generation had a habit of saving money for emergency purposes but now we lost that habit and we became a more consumer-oriented nation. During the lockdown, many rushed for money, but they forget to reduce the cost of capital. Here are 10 options prioritized to fulfil our cash requirements based on a lesser cost of capital.

1. Use your liquid cash and this should be your first step, utilize the cash in hand (If you don’t have liquid cash in hand, start to save 10% of your income as emergency fund every month until you save 6 months’ salary as emergency fund).
2. Ask advance from your customer or ask form others to whom you have given credit.
3. If your requirement is not fulfilled next option is to break the Fixed deposit/Recurring Deposit and utilize that cash.
4. Your third option should be selling your equity holdings as we can buy some other stock at fair price later.
5. You can ask your relatives and friends for money at lower interest rate.
6. Next option is to use your credit card as it has 54 days of time limit, you can pay it back once the situation becomes better.
7. If you can’t able to get money to pay credit card bill in 54 days then your next option is to pledge your gold in NBFC.
8. You can take a top up loan on your house.
9. You can also take house reconstruction loan.
10. If possible, take top-up loan on automobile.
11. Your last option is to take personal loan.

The above is based on the lower cost of capital.