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Tuesday, March 28, 2017

Cash Flow Crunch

Posted by Tim Stobbs on November 12, 2008

Well the new job is going to be great, especially because it means I’ll be getting three pay cheques in Dec (one from my old employer and two from my new employer).  Which is actually almost necessary since I’m back myself into a corner in Nov.  I’m in a cash flow crunch.

Now how did this happen?  Well via a series of extra costs like some investments and some equipment to put in some hardwood in the living room.  I find myself in the extremely odd position of having more money going out than coming in this month.  It’s very unusually for me to have this happen, but such is life and I’m just dealing with it.

Since this is only a one shot deal I’m just going to borrow some cash from my Christmas fund  and just pay it back next month.  It just goes to show even personal finance bloggers mess up on their math once in a while and back themselves into a corner.

So have you ever been in a cash flow crunch?  How did you deal with it?

Comments

5 Responses to “Cash Flow Crunch”
  1. That’s why I have an emergency fund. I use it as a buffer when an unexpected cash shortage happens. I usually put the money back within a month or two.

  2. Jordan Clark says:

    Why would you have to borrow the money from your Christmas fund? Isn’t that the reason to have an emergency fund?

    In times where we’ve busted our budget (it’s happened a couple times this year) that’s where the extra money has come from. Then we tighten things down for a month or two and pay it back.

    It’s the same thing as you’re doing, it just sounds a bit harsher because if something prevented you paying it back you’re sort of saying Christmas is cut.

  3. Mintycake says:

    It happened once, about 6 years ago. I was agressively paying down my mortgage and I overspent on my credit card. I had a choice: pay my minimum mortgage payment or pay the credit card. Since I never carry a balance on my card I paid off my card and used my line of credit at the bank to cover my mortgage payment. I bridged it at my next paycheque but it still burned me I had to use my LOC. After that I made sure to watch my credit card spending – If I don’t have the money in the bank to cover the purchase, I don’t buy it!

  4. Cash Canuck says:

    I maintain a minimum balance to avoid paying monthly fees at my bank. If I screw up my math and the balance dips below $3000, I get dinged for one month’s worth fees. I guess that’s my punishment for not watching my spending more closely (I’ve only done it once since I opened that account).

  5. Canadian Dream says:

    Jordan,

    Ah you forget I don’t keep cash for an emergency fund (until recently where I’ve started keeping some). Also the loan from the Christmas fund is going to be for about 15 days so even if I did have cash in an emergency fund I might not even use it for something so minor.

    Tim

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