How to increase your income and cut your spending
Working towards more income sounds obvious, but it’s easier said than done. In this article, we’ll brainstorm different ways to improve your cash flow, decrease your expenses, and build a realistic spending plan to help keep your financial goals on the right track.
Focus on cash flow
If you’ve looked at your budget recently and realized your cash flow isn’t quite where it needs to be to align with your financial goals, it’s a good idea to start thinking about ways to improve it. What are some ways that you can increase your income? Think about it and make a list.
Once you start, it might feel like there are too many ideas to implement, but you’re going to need to commit to 2 to 3 ideas that will make a significant difference. Remember to put your bias aside and be ready to think of ideas that could help you achieve your goals.
Ideas that just might work
You could consider getting a second job. Look for jobs that are generally accessible and offer flexible hours to accommodate your lifestyle. Something like driving for a rideshare or delivery app, dogwalking or babysitting. The more challenging but stable option would be to apply for a long-term job with higher pay. Finding new work can take time, so set realistic goals and don’t be too hard on yourself.
You could think of selling things like old clothing, a car or household items (community buying, re-selling apps or second-hand markets are a great place to start). Another idea is to file your taxes or explore if you might be eligible for government assistance programs where you can get supplemental income.
Ways to cut spending
When in doubt, cutting your spending is a surefire way to increase cash flow. Some actionable ideas could include picking up food rather than paying for delivery (deleting any food ordering apps can help avoid temptation).
You could cut back on unneeded subscriptions or nonessential items and live a more minimal lifestyle. Where there’s a will, there’s a way. Here are some potential other things you could do:
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Sell your car or shop around for lower insurance
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Delete takeout apps from your phone
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Cancel subscriptions
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Cancel your storage locker
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Bike to work
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Shop your pantry and make meals with items you already have instead of buying new
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Finish your beauty products before buying new ones
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Cut back on the value of gifts
Creating a plan
This is where you go from jotting down ideas to committing to change. Review the ideas you've brainstormed and focus on three areas: increasing your income, cutting expenses and other actions. The first two are obvious, but other actions are more creative ways to increase cash flow.
For example, research if renewing your insurance at a lower price is an option. Maybe you can encourage your children to contribute to the cost of their phone plan by getting a job (as a bonus, they’ll also learn about managing money for themselves). You could look at discounted deals around holiday times for yearly subscriptions. Anything that counts as “outside the box” thinking but could lead to results. From there, commit to following through on the most realistic ideas for each category.
Key takeaways: how to brainstorm your own plan
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Brainstorm ideas in three areas: increasing income, cutting expenses and other actions
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Pick 2 ideas in each category that are most practical to achieve and take action for each one.
Words of encouragement: practice financial resilience
This is the ability to persevere through both predictable and unpredictable financial shocks in life. When it comes to finances, lean on your resources. Access your community outlets like food banks or job searches. Take advantage of government benefits like tax credits and deductions. Talk to family about your financial situation, and continue to find support systems to help you stay on track.