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Improving Cash Flow – Strategies to Help You Get By

Improving Cash Flow – Strategies to Help You Get By 6/19/20



Having too much month left at the end of the money is not an uncommon problem.  Improving your cash flow can be part of the solution.

Cash flow improves when we use cut our spending, increase our income and other resources, and/or use strategies to match the timing of when resources are available to when obligations are due.  There are several strategies to consider for improving cash flow.  Experiment with one at a time until you get the results you need. 

For starters:

  • Negotiate splitting a large monthly payment into two smaller ones that are due at different times. For example, if you can cover your $700 rent with a $350 payment on the first and fifteenth of the month, it might free up more money at the beginning of the month to cover other bills.
  • Check with your utility provider to see if they offer a level payment plan for utility bills. This averages your annual use over a 12-month period, so that you pay the same each month and avoid seasonal spikes in cost.
  • If you are currently set up to pay large lump-sum payments on things like car insurance, consider asking the company to set you up to make smaller monthly payments instead.  There may be a small fee to pay monthly, or a slightly higher overall cost, but it can still make handling these payments more manageable by breaking them into smaller chunks.
  • Contact the companies or businesses that you pay monthly to see if they are able and willing to adjust the due date for your bills.  If they are, set a new monthly due date so that it is soon after the date when you receive income.
  • If your workplace offers the opportunity to split your paycheck and automatically deposit a portion into your savings account, take advantage of it.  That way, when a large lump-sum payment is due, the money is already saved. This helps reduce stress when large, periodic payments (like car insurance or school tuition) are due.

Additional strategies to consider using for improving cash flow are available from Consumer Protection Bureau at  https://files.consumerfinance.gov/f/201508_cfpb_improving-cashflow-checklist-tool.pdf.

Photo Source: https://pixabay.com/illustrations/cash-flow-cash-flow-cycle-money-1462856/ (downloaded 06/23/20)




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