Whether you own a business or are a salaried worker, you might want to increase your cash flow due to financial pressure or future ambitions. Perhaps you’re living paycheck to paycheck and you want to change that. Maybe you want to save up for your child’s education or your retirement fund. Here are eight ways you can improve your cash flow, regardless of what country you live in.
1. Cut Down on Your Expenses
If you’re buying bubble tea or hitting Starbucks every other day, and paying for a gym membership you don’t use, it might be time to think about which expenses you can cut. Figure out your bare minimum for your monthly expenses. By cutting out excess spending, you can save a lot!
2. Boost Your Income
If you find that you cannot cut down on your expenses, one of the best ways to increase your cash flow is to increase your income. You can increase your income with a promotion, a side hustle, or a part-time job. Bringing in more money is much easier than cutting back on your expenses because you don’t have to change your lifestyle drastically.
3. Lease Instead of Buying
Leasing a place, equipment, or supplies might seem counterintuitive as it is generally more expensive, but since you pay in small increments, you don’t have to worry about cash flow. It makes little sense for you to pay the full price if you don’t use the object long term. If the object is something you need constantly for the foreseeable future—for example a vehicle to get around—buying it would be more sensible. But, don’t make the purchase outright. Take out a loan whenever you can.
4. Apply for a Loan
If you are planning to get a place of your own or a car, you can opt for personal loans. Personal loans can help you financially, especially when you are not in a place where you can buy a house or car outright. Only about 0.6% of the world can buy a house or car outright. It is also helpful to those who do not meet the requirements of getting a car loan.
5. Use Credit Payments Wherever Applicable
Credit payments are fuss-free, short-term, small loans that will buy you a month’s time before needing to make payment, effectively increasing your cash flow temporarily. You might receive cashbacks and other bonuses too, just make sure you pay on time.
6. Invest in a High-Interest Savings Account
Unlike investing in stocks where there is high risk, or a fixed deposit where you cannot touch your funds for a fixed period, a high-interest savings account will keep your money safe. While the interest may not be significant, the increases are stable and constant.
7. Pay Your Debts
The thing with financial institutions is that they earn when you don’t pay on time. Look at your credit card bill, your leasing contract, and your loans. if you pay on time, you won’t accrue as much interest which is what they want. Create a habit of paying on time.
8. Find and Fix Your Budget
Take everything into consideration and make a list of your expenses, such as internet and phone bill, groceries, loans, rental—all the things you need to survive. Try your best to stick to that budget and keep every extra cent in your savings account.