The Finance Blogger

The biggest challenge most consumers have is how to manage cash flow and pay all of their bills on time. Some thoughts on how to take control of your cash flow include the following. Setting a budget, balancing your income vs. expenses, paying cash for everything instead of using credit cards. Only make large purchases when you actually have the cash to pay for the item. For most people, this would be a very tough pill to swallow. Especially if they gave up using their credit cards. Credit cards are certainly convenient since they eliminate the need to carry cash. However, they can also be dangerous to your debt situation.

They also have all kinds of incentives which can be used to buy gifts and travel. Incentives are based on how much you use them. However as part of being able to manage cash flow, you must be able to pay the full balance on the statement due date. If you do not, you pay high-interest charges.

Manage Cash Flow: Save for Emergencies

We all have financial emergencies from time to time. It could be the car needing repairs, a new furnace, a major repair of some kind for the house etc. Or even the loss of a job. Building an emergency fund will not only give you peace of mind since you do not need to worry about these things, your monthly cash flow will not be affected since you already have the funds to meet the needs of the emergency.

Manage Cash Flow: Spend Surplus Money at the end of the Month

Once you know you have paid all of your bills, set aside money for emergencies and also any savings you may be planning for, only then can you spend the extra money that is left over on items that you may be looking at and were thinking about buying on credit.  If your saving for some large expensive item, this extra money can be set aside for that item to be purchased at a later date.

Many people get in trouble by spending money before they actually have it and get further into debt because they now have to pay interest on the debt. Manage cash flow to avoid these situations and save for emergencies.

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