Wednesday, August 02, 2006

OK, so I have thought about cash flow...here are some ideas.

After bad mouthing the concept of cash flow awhile back I want to digress and offer some suggestions. I guess in short, what I am saying is that I recognize that Cash Flow Problems do exist and that they are real in everyone's life no matter if you make not much or yes a lot.

As a matter of fact, if "Cash Flow" is not on your mind to an extent then it means that you are blowing and going and need to ADD some direction to your spending.

So here we go...
...if it's two days until payday and you are out of money and need...

...gas- then just put in $10 (you don't have to fill up.)

...groceries- focus on buying things you can get several meals out of. Another good cash flow strategy for larger families and groceries is to make sure that you don't run out of everything at once. Stagger your bulk purchases so you don't have a cash flow crunch in any given week.

...car repairs- ask the mechanic if there is a patch or a "lesser fix" that can get you by until payday. We got a quote for a transmission repair of $1700. We asked the mechanic the options and we ened up getting the truck out of the shop for $600. Three years later we are still driving on the "temporary fix"!

...clothes- there is no such thing as a cash flow crisis for clothes. Look in your closet and hold off!
Oh yes, ditto for furniture. Any perceived "need" for new clothes or furniture when you cannot pay cash is based in pride and vanity. And never ever ever never RENT furniture...please!

...household items- honestly, this should not be a problem- I mean toothpaste is cheap...however, if you are in a very tight situation-- share your toothepaste, share your deodorant, use the other kind of shampoo, use the razor blade for a few more days. At the very least if you don't have the cash for the $12 bottle of shampoo then buy the sixty five cent one to get you by.

...haircut, manicure, etc.-- cancel your appointment. You can wait a few more days or a week.

...any bill-- if a bill is due and you don't have the money then you need to figure out which ones would be the easiest to negotiate with. See if you can pay half now and half in a few days.


OK, there you go. But really, unless you are in business for yourself, then personal cash flow issues should not exist. You learn to live within your means and get ahead of the game enough where credit cards are no longer cash flow tools. Using credit cards to manage cash flow is stage one of debt.

Remember you cannot spend your way to prosperity.

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