This Is Personal! Tips on How to Increase Individual Cash Flow.

Stop and think about these questions for a moment. How long could you survive financially if you encountered any sort of set-back in life? What if you lost your job or suffered a significant illness? How high could interest rates rise before your loans became a real worry? They’re some sobering thoughts, indeed. Treating personal finances like you’re running a business can be key for economic wellbeing. To gain wealth, you must spend less than you earn. This, dear reader, is the fundamental law of money. We’ve compiled a bunch of handy hints to help keep you out of the red and remain in black!

• Settle bills a few days before their due date rather than as soon as you receive them. You don’t get any bonuses for paying bills early. Instead, that money can be working for you smarter in an offset or high interest account.

• Pay off high interest rate debt first to free up money. This not only improves your personal cash flow now, but it also gives you potential to invest that money, to increase it in the future.

• Use credit cards as a means of delaying cash payments to manipulate your cash flow to your advantage.

• Keep an eye on the interest rates you’re paying on your debts and make sure they’re competitive. If they’re not, speak to your bank about a discount.

• Evaluate your daily spending habits on transport, meals and exercise. Consider car-pooling to work, making your own lunch and ditching the gym membership in favour of going for a run or working out at the park, you’ll be surprised how much you can save!

• Reduce non-deductible interest on your mortgage by considering the benefits of having an offset bank account linked. Perhaps speak to your Mortgage lender about your options.

• Pay no more taxes than you need to and if you saved money this year, then consider re-investing that money you saved.

• Lastly, develop a vigilant attitude toward cutting costs around the house, no matter how small. Turn lights out when you leave a room; use the washing machine during off-peak hours; learn to do minor repairs yourself.

Working out how to increase revenue and reduce costs is the secret to maximising profits, building assets and, ultimately, putting more dollars in your bank account. Moneysoft helps you understand your cash flow. If you don’t have a clear picture of this, then it is difficult to understand your overall financial position. Something to think about…   Disclaimer: The content within is general or publicly available information only. Speak with your financial adviser or accountant, for advice aligned to your specific circumstances.

Posted 9 years ago 2 Minute(s) to read