In a day when cash is hard to come by, and homes and businesses have to try to make the dollar go further than before, money can be saved by following some cash flow tips. Of course, the more carefully the tips are applied, the more money that can be saved – allowing your money to go that much further. Here are some cash flow tips to help you get started.
1. Review Your Budget
A good place to start is to review all of your current expenditures and create a budget – if you do not already have one. Then, once the budget is made, take a very close look at it and determine what things you can do without. Be sure to eliminate higher than necessary services – such as the most expensive cable TV, phone service, computer services, etc. It may even be possible to combine them at a reduced price. Be sure also to cut out some things no longer used, such as gym fees, and other memberships.
Your budget should also include set limits on each area of expenses. Staying within those limits will enable good financial management, but will still require some occasional adjustments. Using a cash flow sheet will help provide a better control on your cash management.
2. Use Coupons and Comparison Shop
Whenever you need to make a special purchase, be sure to take the time to get those special sales deals. Most stores and manufacturers follow a cycle of offering sales on particular items, possibly every six to eight weeks. By watching sales and coupons carefully, you can often find great deals on those things you need – and save money. Rebates on products are another excellent way to get discounts, and sometimes will even allow items to be obtained for free. Buying secondhand items is another way to increase those cash flows.
3. Pay More Than the Minimum Amount on Credit Bills
Anytime that you owe money on a credit card, or a loan, you are losing money in interest. Late fees, if you should pay late, are going to cost you more. Avoid late fees by paying on time, increase your credit score, and get better interest rates through refinancing. Always pay more than the minimum to be able to reduce bills faster and pay less in interest.
4. Reduce Your Overhead Costs
If you are having financial difficulty, try renting another house or office at a lower cost. Another option would be to rent out a room or office, which will reduce your own costs. Of course, it may also increase your taxes, too, depending on the arrangements. In addition, you can find ways to reduce your utilities, such as by adjusting the thermostat, insulating, etc. If you have a business, have a promotion among your employees for good money saving tips.
If you are renting out a storage space – get rid of it. Either bring the stuff back to your home or office, or sell it. You can sell it on eBay or Craigslist, or have a Yard Sale – which will also increase your cash flow.
5. Cut Down on Your Regular Expenses
There may be other bills that you pay on a regular basis. Many times these can be reduced. You can reduce your car or health insurance, for instance, by raising the deductible, or possibly by eliminating a particular part of the policy that you are not apt to need. You also may be paying too much in income taxes, and you can talk to your employer or accountant about ways to possibly adjust it accordingly.
6. Take Advantage of Interest Earning Accounts
You can earn interest on money that you bring in, and you will earn even more if your make your deposits quickly. You can also earn cash rewards on credit cards, which will reduce your costs – especially if you pay the bill in full each month. There really are many good ways you can increase your cash flow.