3 Ways to Boost Your Personal Cash Flow
The key to living an abundant life is learning how to manage your spending. One way to do this is to use the concept of personal cash flow. Since we, as individuals, create our own schedule of income, spending, and saving, we can determine whether we will experience positive or negative cash flow.
If your money is tied up in credit cards, large mortgages, or other extraneous debt, you are probably under a lot of financial stress. To get out of this situation, identify how much money is flowing into and out of your life and then control it by either reducing expenses or increasing your income.
As long as you spend and save within your personal budget, you are going to be okay. The problem arises when you feel helpless and don’t take any constructive action to improve your financial situation.
If you are stressed out about negative cash flow, here are some suggestions to improve your finances.
- Fix Any Cash Draining Problems
If you have a cash-draining problem, such as an expensive home maintenance issue, then you will need to face the painful truth about how much not doing something about it is costing you. For instance, if you have a leaky faucet in your kitchen, you are paying extra every month on your city water bill.
While the obvious solution might be to hire a plumber, you might be procrastinating on fixing your leaky faucet because it’s difficult to find a good plumber.
Many homeowners face this dilemma because there are more than a dozen different types of plumbing contractors throughout the country, each with their own set of qualifications, policies, fees, and inspections to complete any work.
Rather than picking a plumbing company at random, try finding one through HomeAdvisor, an online marketplace that helps homeowners find the best local service professionals.
- Earn Extra Income
If you are not earning enough from your regular job, you may want to consider supplementing your income with a side hustle. For instance, becoming a private tutor can be an excellent way to earn extra cash for your lifestyle. Tutoring is a fast-paced profession that requires creativity, intelligence, and commitment.
As a tutor, you’ll be responsible for your own expenses, such as advertising and buying stationery or educational materials. You can teach several students every week or concentrate on one or two. You’ll need to be self-driven and have strong communication skills so that you can work with clients on a one-on-one basis or via Skype or Zoom.
Many people who tutor do so for the love of the subject or to help pay for some living expenses. Depending on the type of tutoring you do, you can earn between $25 and $75 per hour.
To get parents to hire you to tutor their children, try online marketing techniques like using Facebook advertising or creating a YouTube channel. You could also just put a classified ad in your local newspaper or network to find people who might either refer or hire you. Being comfortable with your ability to teach will help you land some well-paying gigs with students who need your help.
- Organize Your Finances
One of the best things you can do to improve your financial situation is to create a budget for the coming months. Even if you earn little every month, setting aside a little every month can add up.
Your finances could also suffer if you misuse your credit cards. It’s easy to get into debt when you don’t monitor your spending. All it takes is an expensive purchase to derail your finances, forcing you to spend more than you can afford to pay down your credit card debt.
In a nutshell, try one or more of these suggestions to set yourself up to enjoy a positive cash flow. Taking charge of your finances will enhance your happiness and fulfillment. It will also help relieve much of the stress of not having enough money to cover all your monthly expenses.
