Just like the current credit crisis, which is causing a lack of cash flow from banks and lending institutions to other banks as well as the general public, we can experience our own cash flow problems when we spend too much money and don’t pay attention to our finances closely enough. Living paycheck to paycheck is an example of this, as well as times when your bank account is almost empty, or even worse, is empty, right before payday. Unfortunately for us regular people (I’m not going to use the term Joe sixpack here- and definitely not Joe the plumber!), when we get ourselves into a financial bind or have cash flow problems, frequently there is no one there who is going to bail us out of our own personal economic crisis. So how do you reverse the trend and start getting cash flowing if you need it quickly? How do you bail yourself out of a financial meltdown?
Raise Cash
Sell some stuff- Sell your things on Craigslist or Ebay, or hold a garage sale. This could cover a whole variety of items, such as furniture, cars, books, dvds, cds, etc.
Cash in your loose change- The last time I brought change to a bank, I had over $150 in change.
While this obviously may not solve all of your problems, it could help you get out of a jam.
Cash in savings bonds- Do you have savings bonds sitting around, or other non-retirement investments? If you are really in a bind, cash them in to help yourself out.
Borrow from a relative- Even though it can hurt your pride, borrowing from a relative can be a way to get yourself out of a jam.
Learn from your mistakes
Reduce Spending- In order to get your cash flow on the positive side, you have to cut back on expenditures. Consider trimming where you can. For a list of ways to cut back on expenses, check out these articles:
35 Ways to Kick Start Your Debt Snowball
30 Ways To Save on Your Grocery Shopping and Food Bill
30 Ways To Stretch and Maximize Your Dollar
Budget- While budget can be a “loaded” word, a budget is a great tool for keeping your spending in line. Create a budget, and stick to it.
Pay down debt- After you increase your cash flow, take that extra money and pay down debt.
Save, Save, Save- Don’t forget to put something away. Build your emergency fund, and plan for future purchases or expenditures in advance.Don’t forget to contribute to your 401k or other retirement plan!
Increase income and/or cash flow
Get a part-time job- With the holidays coming up (although it will probably be a weak year for retailers given the state of the economy) it will soon be the best time of the year to get a part-time job in the evenings or on the weekends. Companies like Fed Ex and UPS also hire during the holiday season to handle the increase in shipping volume.
Start a side business, work overtime (if available), or moonlight- Do you have a talent you can turn into cash, a hobby or something else you like to do? Can you work extra hours at your regular job? Can you find someone else to work for on the side? Increasing your income is the surest way to raise extra cash when you need it.
Looking to get a raise at work? Try some of these tips:
Two of the Most Important Work Habits for Increasing Your Income
11 Ways To Market Yourself at Work to Increase Your Salary
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