How Can I Improve My Monthly Personal Cash Flow?

It will be difficult to ever get ahead of your finances if you can’t achieve positive cash flow. Increasing your monthly cash flow might seem like something that only the lottery or a higher paying job will fix, but boosting your cash flow can be surprisingly simple.

Increase Positive Cash Flow

Fixed expenses, like your mortgage and car payment, are the largest cause of negative cash flow. Other recurring expenses vary from month to month, such as food, gas, and health care.

In order to increase your cash flow you must first examine where your money is coming from and where it is going. If we are in the negative we might consider taking on a second job, choosing investments that yield higher levels of income, renting out empty rooms in your house or taking on additional clients. In some cases though, control is very limited.

Lower Discretionary Expenses

Lowering discretionary expenses is the first step toward increasing positive cash flow. Gym memberships, cable TV, unnecessary trips, will all affect our monthly cash flow. Find places where you can eliminate these expenses to start seeing a positive cash flow.

Does all of this sound overwhelming? Cash management is never easy but with a little planning, it can be simple. Avoiding it will not help you get on your way to financial freedom.