There Are Only Two Ways to Improve Your Cash Flow

You want more money.

You want to increase your monthly income.

You want to be cash flow positive.

Maybe it’s to pay off your debt (or stop going into debt). Maybe it’s to make a substantial donation to a charity. Or maybe it’s to travel South America for a year.

So, you read books on making money. You read blogs for the secret access to money. You look for the tip that will make you the most money. You study, study, study. You become an expert on finances. You start spouting all of the potential ways to get rich. But you still haven’t added any dollars to your pocket.

I’ll save you some time...and hopefully get your cash flow to a positive state.

If you really want to improve your cash flow, there are only two ways to do it.

• Earn more money.


• Spend less money.

Two ways – that’s it.

I know. Probably not what you were looking for, but it’s true. And, until you can accept that there are only these two ways – and you start acting upon one (or both) of these methods – you’ll always be looking for the secret sauce.

Earn more money.

The first way to increase your cash flow is to earn more money.

Don’t read about it. Go do it. (The secret sauce you've been looking for – action.)

Determine if you’re maximizing your potential at your day job. Is there another role or a promotion that you can strive for? What steps are needed to get the raise?

Maxed out on the day job, how about a night job? Is there part-time work where you can make some additional money?

Interested in starting your own business – an option if you already have a strong interest or skill in a subject, otherwise you’re back to reading and not acting.

How about weekend work?

Yes, it sucks. Working two jobs is exhausting. It’s boring and hard. You're going to miss your favorite TV shows. But you can’t magically conjure up money. You need to work for it.

If you’re not willing to earn more, then…

Spend less money.

The second option for increasing your cash flow is to spend less money.

Nobody chooses this by default right? Well, maybe…

If you like (only) working 40 hours a week and you’d rather have your evenings and weekends to yourself, then your best option is to minimize your outflows.

Cutting your expenses also requires action, so make the first move.

Have you reviewed your current expenses lately? Are you spending on frivolous purchases? Are you buying to be trendy?

If yes, stop wasting your money.

Have you selected the best company/product for the best prices available? Do you have a budget and stick to your budget? Do you review your budget monthly?

If no, build better habits.

You’ll be amazed at how much money you can save by just being aware of your expenses. You’ll question every purchase – “Really, this is where I want to spend my $20? What a waste of money!”

The secret is out - there are only two ways to improve your cash flow.

Earn more or spend less.

Now go. Act! (And spread the word…)

How have you tried to improve your cash flow? Are you taking action? Or are you hesitating and making excuses?