How to Boost Your Personal Cash Flow


Over the years, I’ve noticed that one of the biggest reasons people fall into debt is poor cash flow management.

Put simply, cash flow is the relationship between how much money you have coming in each month versus how much is going out. Ideally, you want more money coming in than going out, but for a lot of people, this isn’t the case.

Luckily, there are 4 steps you can take to boost your cash flow and keep you from falling into debt.

1. Evaluate Your Income and Expenses

Look at how much you’re making and how much you’re spending each month. Dividing your expenses up into categories (groceries, bills, “fun money”, etc.) can help you to discover where your money is going every month and if you’re overindulging in certain areas. You might not think that much about the takeout lunches you eat during the week, but having a dollar sign attached to that habit might encourage you to reconsider your meal plans. Taking a little time to review your spending patterns can open your eyes to new savings opportunities, help you drop your bad money habits, and give your cash flow that much needed boost.

2. Make a Budget

Of course, recognizing saving opportunities is only half the battle. Once you’ve broken down your expenses, it’s time to realign your financial priorities and build yourself a budget. Allot yourself a set amount of money each month for each particular category and set up automatic savings or bill payments to keep yourself on track. If you need a little extra help, consider using an online tool like Budget Jewel. Budget Jewel is an easy-to-use budget planning tool designed by the credit and debt experts at Tayne Law Group!

3. Adopt Frugal Practices

If you’re looking for savings that extend beyond where you’re spending your money, then maybe you should look at what you’re spending your money on. Perhaps the next time you need a new TV or computer, you’ll look into buying used as opposed to new. Maybe the next time you go grocery shopping you’ll take a quick look online for coupons or other deals. You’d be surprised at how much more money you’ll save without sacrificing just by picking up a few frugal habits.

4. Increase Your Income

While this might be the most difficult way to boost your cash flow, it can also be the most rewarding. When looking to increase your income, there are three paths you can take: ask your employer for a raise, seek out freelancing or side hustle opportunities, and sell your old or unused property. Regardless of which route you decide to take, proper planning and time management will be key to increasing your income. Before asking for a raise, develop a thoughtful and persuasive case as to why you deserve more money. If you want to pick up a side-job, make sure it’s in line with your current skill set and won’t distract you from your primary line of work or cut too much into your downtime. And if you’re looking to sell your old junk, make sure you pick the best service for distributing your wares (eBay, yard sale, Craigslist, etc).

The key to keeping your cash flow in check is learning to live within your means. Of course, that doesn’t mean you need to abstain from acquiring all the things you want. Living within your means is more about practicing smart money habits, keeping track of your finances, and, most importantly, being patient.

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I just wanted to thank your entire staff at The Law Offices of Leslie H. Tayne, for helping me get out of debt. If it wasn’t for your firm, I would have never been able to resolve my $13k worth of debt in less than 3 years. Your staff did a great job, I was finally able to buy myself a brand new car without using a cosigner. I can’t tell you again how happy I am. I would recommend your services to anyone.

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