Updated: Feb 10
In this article, I will explain how to build cash flow for individuals.
There are 2 main ways of building cash flow for individuals:
Growing your income
Reducing your expenses
I will discuss reducing your expenses part today.
How can you reduce your expenses and build your cash flow?
The main ways to reduce your expenses are:
Reduce the total amount by focusing on miscellaneous expenses only
Debt unification by using the All-in-One banking concept
Do not forget to structure your banking the way that you pay yourself first and use the 10%/10%/10% rule adapted to your current situation.
Why should you focus on miscellaneous expenses?
When trying to follow all of your expenses you will notice that is cumbersome and time-consuming, not to mention that is not helpful either.
Categorization makes it easier to control:
You should automate payment for low emotional risk expenses (hydro, gas, phone, taxes, Insurance) and also improve your credit score along the way.
You should control the spendings of high emotional risk ones (groceries, hobbies, restaurants, vacations). Government is giving us a hand here, aren’t they?
How is debt unification helpful?
Canadian families have on average 11 types of different debts: line of credit, home line of credit, car financing, credit cards, and so on.
Don’t get distracted by interest rates. It is better to find out the total cost of repayment and do a debt unification with an All In One banking product.
You will end up paying less and in way less time.
What is more important: to get a lower interest rate or to pay less and faster?
With these 2 strategies, believe it or not, I can help families with over $100,000 income/year and which have a mortgage to save over $3,000/month
How much money do you need to generate $3000/month? Somewhere north of $1,000,000 is it not?
Feel free to contact me if you need help with:
Pay yourself first.
The 10%/10%/10% rule.
All in one banking.
Improving your overall cash flow.