How to increase your personal cash flow

Economic independence or freedom does not happen just by accident. Many people are waiting to win the lottery. Sorry to disappoint you, but it won’t happen. Financial independence requires you to take conscious steps.

An important step on the road to financial independence is to increase the amount you have available. This money can help you reduce debt and also help you build a nest egg. There are two ways to achieve this goal. One way is to manage your expenses and the other way is to increase your available income.

How to manage expenses

Make every effort to spend less than you earn. This may seem obvious, but it is very difficult for many people. If you continue to spend more than you earn, you will always struggle financially. If you develop a habit of spending less than you earn, you would have taken the first step toward financial independence.

Create a budget by looking at your monthly spending. Distinguish between your desires and your needs.

Take a good look at all your insurances, like cars, homeowners and medical. Try to increase the equity of your insurance policies to an appropriate level. This will reduce your premiums and thus increase your cash flow.

When shopping for groceries, look for store brands. They are cheaper.

Earn tax deductions by starting your own business. Some of the tax deductions you may be able to make are:

• Self-tax deduction

• Home office

• Health insurance premiums

• Meals and entertainment

• Internet and telephone

• Interest on business loans and interest on business credit cards

• Car

• Trip

• Education

Do not consider the above as tax advice. Always seek tax advice from your tax consultant.

If you are considered low income, talk to the utilities. They may consider giving you a discount on your bills.

How to Increase Your Available Income

One of the ways you can increase your available income is to take on another career or part-time job for additional income.

Look through the house and find things in the house that you can sell either on eBay or in a garage sale. You will be amazed at the amount you can earn from this. You can sell things like DVDs, furniture, electronics, books, etc. You make extra money on sales and also create extra space in your home!

You can offer a service that other people would pay for. For example, you can offer services such as tuition, translation, etc. to make some extra money weekly.

You can also be part of focus groups online by taking surveys and sharing your thoughts on certain products and services. However, be careful with the online surveys, many of them ask you to pay money in advance and offer you little or nothing in return.

Consult your tax consultant about adjusting your W-2 allowances if you expect a tax refund.

Carefully review your last three years of tax returns to make sure you didn’t miss out on the deductions available to you. If you missed the deduction, submit a change to your taxes.

Of course, you can always ask your employers for an increase in the workplace or offer to work additional hours for overtime.

Once you are able to generate additional revenue, you can now start investing to achieve financial independence.