I don’t have extra cash to put toward my debt or savings. What are my options?
Last post, I had you make a list of all your debt and its terms. Now, you’re gonna figure out how to have any extra money to put towards the balance. If you couldn’t find extra money, there are exactly two ways to free up more cash to put toward debt: Make More and Spend Less. Which should you choose? That’s up to you, though I’d recommend doing both for the quickest paydown.
1) MAKE MORE
I want to make more. How do I do that?
– Ask for a salary raise. Gather physical proof of how much value you add to your company and make an appointment to talk with your boss.
– Look at what you do for a living, or what you have a degree in. In order to maximize your time and money, your side-job should be in a field related to what you already do for a living or went to school for. For example, a teacher may want to work as a tutor.
– Identify what you’re good at, and start making money from it. You can do freelance jobs like writing, editing, designing websites, acting, photography, organizing events, consulting, tutoring or translating – basically do whatever your skill set allows on a freelance business.
– Try Direct Selling – Avon, Natasha, MSE, etc.
– Offer e-Loads to all network loads such as Smart, Globe, Sun, Talk ‘n Text, and TM. Who will be your buyers? Colleagues, friends, family members, etc. It gives small earnings, but it adds up. Thus, it can provide you a good source of extra money per month.
– Sell Your Clutter. We always have items lying around that we don’t need, and any income you can put towards debt is better than letting these junk clutter up your beautiful home. Host a garage sale for smaller trinkets, and list higher value items on Ebay for a bigger profit.
– Rent out your car or home — rent out your stuff to bring in extra funds.
– Babysitting, baking, cooking, housekeeping… be creative.
2) SPEND LESS
I want to spend less. How do I do that?
There are even more ways to cut expenses than to increase income. Go over your Budget List line-by-line and commit to making real changes in your spending. The basic rule is: Don’t buy anything you don’t need.
– Downsize: Your house, car or commute — identify your big expenses and downsize them to save a lot in a short time.
– Put it off: If possible, put off large purchases or expensive events until you’ve paid off your credit card debt. This could be getting married, having kids, or buying a house.
– DIY: Cook your lunches and make coffee at home – take on the tasks yourself that you usually buy or outsource.
– Entertain yourself for less
– Drive less: If possible, walk, bike or take public transportation instead of driving.
– Use less energy: Turn off lights and unplug appliances and electronics when not in use.
There are a million and one ways to decrease your expenses. Look at your current budget, identify line items that aren’t necessary and cut those things that matter less to you than paying off your debt.
Note: Don’t do anything that will be harmful to your health or moral code in the name of saving money — there are some things worth paying for.
Note: If you have debt, paying it down and saving should happen simultaneously.
Only you know what needs to be done. Ask yourself if you need a “make more” or “spend less” solution. You might have to do a combination of the two.
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