Every time I’m working on my budget, it always feels like we don’t have enough money to go around. If you find yourself in a similar position, you might have a cash flow problem. So let’s make it our next goal to get cash flow positive.
But what exactly does that mean and how do we do it?
Well, quite simply it means spending less than you make.
If you’ve already cut some spending, that’s awesome. You’re definitely heading in the right direction. But what if you need more?
There are really only two ways to get your cash flow to positive: cut spending and make more money.
It’s sort of a rinse/repeat type solution. Which you do and how you do it comes down to the all-important prioritization question.
Ask yourself: What is my priority?
We’ve cut a number of expenses, prioritizing our debt and savings over entertainment and dining in the past few months. I still feel like there’s not enough to go around, but looking at the numbers, I’ve actually been able to budget towards some of our bigger expenses in advance. So instead of having to pull out the rent and mortgage from one paycheck, I’m able to spread it out throughout the month, which gives me a little more flexibility.
We’re still not to the point of living off last month’s paycheck so I’m experimenting with ways to cut our grocery bill in half. That’s our biggest discretionary expense and it will be a huge triumph if I can actually get it cut by half…especially around the holidays.
- Make a weekly meal plan – this will hopefully cut down on any spontaneous fast food or delivery solutions to the “What’s for dinner?” dilemma.
- Order groceries online – this helps me price comparison as well as avoid grabbing things that look good but that I don’t need (snacks primarily)
- Batch cook – this will make our busy weeks easier to manage by having something easily re-heatable and offering variety if we don’t all want the same leftovers
That’s my plan. How about you? Need to get cash flow positive? How are you going to get there?