Whether you want to stop living paycheck to paycheck, need extra cash to pay off debt, or want to save for a future goal, knowing how to increase cash flow can help you get there faster.
As you’re working on spending less or saving more, it’s essential to keep track of these numbers. Over time, you’ll become more familiar with your spending habits, and it will be easier to know which levers to pull to keep your monthly cash flow strong.
Here are a few tips to help increase your cash flow.
1. Decrease Your Expenses
If you spend $10 a day on takeaway coffee, this adds up to $50 a week or $2,600 a year!!
By cutting back to 1 coffee a day you can save $1,300 a year. (on a $300,000 mortgage, this is equal to 1 extra payment and can save you $65 per year in interest)
2. Increase Your Income
You can increase your income in a number of ways, ask for a pay rise, get a 2nd job, work more overtime if it’s available. If you can increase your income from $1,000 a week before tax to $1,200 a week before tax you can take home approximately $7,000 more per year after tax.
3. Create a Passive Income
Not all of us have spare cash just laying around to be invested, but at the same time you don’t need to have $1,000,000 to invest. You can start from as little as $2,000 and make additional contributions of $20 per week. Over time the earnings from this can be paid to you creating a passive income that supplements your income from working. Make your money work for you!