Simple Ways to Free Up Your Personal Cash Flow

Do you find yourself short on cash by the end of every month? Are you trying and failing to meet savings goals? It may be time to reassess your personal cash flow.

Cash flow simply refers to your income after taking away your expenses. Ideally, you should have money left over after taking expenses out to save rather than accumulate debt.

Taking a good look at where your hard-earned money goes each month can help you redirect it in more advantageous ways that you are better able to maximize your paycheck. Here are a few first steps to take.

1. Look at your existing contracts

One of the first orders of business should be analyzing your existing financial obligations carefully. Pull out those credit card agreements, utility bills, and loan papers to read the fine print. Many of us are paying for additional services we don’t need or fees we don’t understand.

Suppose there’s anything you don’t understand on your existing contracts. Set aside a day to call customer service lines to ask for assistance. It’s not uncommon to be paying more than you need to for services that could easily be canceled. At the same time, if you’re paying for media contracts, gym memberships, or other services you don’t really use, cancel these to free up cash each month immediately.

2. Consolidate your bills

As you go over your contracts, another way to save money from month to month is to consolidate bills. For example, if you are paying for insurance policies with four different companies, you could save money by consolidating these into a contract with a single provider. Utility and media companies also offer premium rates for those who consolidate services.

3. Track your purchases

Along with your contracts, you must also track your discretionary purchases to see where you can potentially cut corners. That morning latte and muffin each day can really add up without you realizing it.

To create and stick to a budget that works for you, you’ll need to track these small expenses and factor them into the budget. This will help you see where you can cut money each month and free up cash.

If you’re not sure where to start, it may be worth looking at accounting courses like these at training.com.au to learn some bookkeeping basics. You could also sign up for online money tracking tools like Money Dashboard or Money Vista.

4. Refinance loans

Is your home or auto loan taking a significant chunk out of your monthly pay? Try refinancing to a new one with more advantageous terms, whether it’s a longer repayment period or lower interest rates.

I really like the team at MotoRefi for auto refinancing as well. MotoRefi has car loan rates as low as 1.49%. They can offer these low rates for car refinance because they work with some of the best local lenders to find the best rates.

The process with MotoRefi is straightforward and completely online. You can pre-qualify on their secure, fully online website without even having to get off of the couch. And, you don’t have to give them your social security number to start the loan process and pre-qualify. All you have to do is to share a minimal amount of information, and MotoRefi will find the best pre-qualified loan options in a matter of seconds – all without impacting your credit.

Customers who refinanced their car loans through MotoRefi saved an average of $101.02 per month on their car payments. Wouldn’t it be great to have an extra $100 in your pocket each month?

5. Boost your income

There are essentially two ways to boost your personal cash flow: by cutting expenses and improving your income. Although the second way is more challenging, there are a number of options ranging from asking for a raise to starting your own business. Look for freelance jobs, sell old clothes on eBay, or invest in the stock market to improve cash flow this way.

By taking a closer look at your personal finances, you can see where your personal cash flow goes each month, and you can work it to your advantage.