Cash Flow Series
Creating a budget and tracking your expenses is the first thing to do if you’re looking to improve your cash flow, but you should also consider a few other tips.
Use The 50-30-20 Rule:
The 50-30-20 rule is a budgeting trick. The idea is simple. You put 50% of your income towards necessities, such as rent/mortgage, groceries, transportation, and internet/cell phone. Another 30% goes to your wants, which may include entertainment, clothes, eating out, etc. Finally, the remaining 20% is for savings. If you’re able to stick to this plan, you’ll likely have no problem reaching your financial goals. That said, if you live in an area with a high cost of living, you may have to dedicate more of your budget to housing.
Slash Your Expenses:
You'll be able to track your spending and develop a budget so that you can know exactly where your money is going. With that information in mind, you may begin reducing your spending. You should start by looking at your monthly bills. For instance, you might be able to cut back on your streaming subscriptions, switch to a more affordable internet plan, or use money-saving grocery shopping strategies like buying in bulk.
As an alternative, comparing rates to make sure you got the greatest offer could be quite helpful.
Did you find this helpful? Then look out for more tips on improving your cash flow on next week’s series.