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8 Tips on How to Have and Maintain a Positive Cash Flow
Positive Cash Flow
Below are some tips on how to achieve and hold on to a positive cash flow. Getting into the habit of doing things that help your financial situation is something that is great for everyone.
1. Try not carrying so much cash and credit cards around with you. If you don't have the money, you won't spend it on impulse items. Force yourself to work with what you have. Not having your checkbook to fall back on is a good thing as well. Basically, taking away your own temptation, or even better just don't go out shopping if you don't really need something. That way you take away any possible deprived feeling as well.
2. Increase your income. Bringing in more money, while reducing expenses is a great way to save and have more money. So it is a definite cash flow builder. Consider things like encouraging a spouse to go back to work, free lancing, moonlighting on a second job, turning a hobby into a money making business, babysitting other people's children, cleaning houses, and encouraging your teen to go get a part time job.
Get Organized, Allowances, and Raises
3. Get Organized with your Records. The goal here is to find a place or a "home" for all your records. It is set aside specifically for your "money space", for all your financial records. The location can be anywhere handy to you, whether a desk, kitchen, office, drawers, closet, etc. Set up file folders and a system that is super easy and works for you. This will cut down on what can sometimes be the high cost of disorganization. "I knew this was here somewhere," is a pain and a time waster.
4. Everyone Gets an allowance. To those that spend money, it helps to take away the nickle and "diming" feeling. This allowance is for people to spend on whatever the want. It doesn't even have to be much. Having an allowance helps to teach kids money management skills. Having some freedom and flexibility is great too. What is interesting to observe is how some kids grow up saving their little bits of allowance, and it is amazing how they end up having the most cash sometimes! I had a little brother like this, now I have a saver that is growing up and I am so impressed.
5. If and when you should ever get a raise in your pay, try to ignore it, and act like you are making what you were before. Use the extra to reduce your debt and if that isn't a problem then save it! You will truly be improving your standard of living.
6. Refinancing your Mortgage Keep an eye on the interest rates, and if yours is one percent or more over current interest rates, you may want to consider refinancing. If you plan to remain in your house for some time it is especially true. Paying less monthly on your mortgage is like getting a small raise. Consider all the pros and cons before doing so.
7. Share your accounts with each other. Spouses that don't share accounts don't feel the need sometimes to communicate about financial matters. The goal here is to account for all income and expenses, so you can track cash flow accurately.
8. Reward yourself on occasion Do something special for yourself on occasion, like treating yourself to a nice dinner out or a movie, etc. Tracking your cash flow takes some discipline and while it is worth the effort, doing something special for yourself is a way to periodically reward those efforts.