Your FinTECH and Wealth Building Basics

Understanding Your Cash Flow

An important part of any financial strategy is determining how much money is available to you, and, when possible, increasing that amount. This money – your cash flow – can help you accomplish many things including reducing or eliminating debt and increasing your savings.


Manage Expenses

To help increase cash flow, it’s important to manage and reduce expenses. Here are just a few ideas on how to accomplish this important part of your financial strategy:

  • Create a budget – and stick to it – by weighing your monthly income and expenses, and determining needs versus wants
  • Spend less money than you earn
  • Consider raising deductibles on your auto, homeowners and other insurance policies, which can help lower premiums
  • Look for ways to reposition money that is currently in low-interest savings accounts
  • If your mortgage includes Private Mortgage Insurance (PMI), drop it as soon as the equity in your home reaches 20 percent of your home’s value
  • If available, consider putting your money into a qualified retirement plan, such as a 401(k) or IRA

Increase Your Available Income

If it’s necessary to increase your household income to improve your cash flow, you can consider:

  • Starting a second career or a part-time opportunity to earn additional income
  • Adjusting your W-2 allowances if you are expecting a tax refund, but consult with your tax advisor before making this change

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