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Publish Date : May 14, 2021

Ep. 22 – Navigate Your Cash Flow Effectively

Feelin' a little queasy from the ups and downs of your business's cash flow? Watch this episode to know for some cash flow hacks that'll help smooth out the ride!

Prefer To Read? Here's your Transcript:

I remember those days when I thought I was doing great and bringing in plenty of cash… and the next thing I knew, there's nothing but cobwebs in my bank accounts! It was freaking exhausting!

Luckily, over time, I got pretty darn good at managing the money going in and out of my accounts so that the flow of my cash is always super healthy and predicatable now. YAY! So here are 3 of those cash flow hacks to help you get off that pesky revenue rollercoaster.

Tip #1: Get a Credit Card

Wait! Before you bolt. What I want you to understand is that cash flow is all about TIMING! A lot of times you HAVE enough money to cover all of your expenses and paychecks. For example, you make $10K per month but you also pay yourself $3K per month and spend $7K per month. When you're just breaking even or barely making profit, it can make the TIMING difficult on your payments. Let's say you have an expense invoice due today but your client payment doesn't come in until next week. You have the money, but the timing just isn't working. THAT is when credit cards come in handy. You might be one of those people who shudders at the thought of getting a credit card, and I get that. You DO have to be responsible with it. But getting one can make a BIG difference in your cash flow.

Tip #2: Use Other Forms of Payment

Another way to alleviate cash flow problems is to, well, stop using cash. Haha. If you get a credit card, you can generate POINTS and MILES and pay for expenses or work trips using the rewards you generate. If a holiday comes up, you can ask your family for GIFT CARDS instead of actual presents and use those to pay for expenses. Remember: Money may be the most COMMON means of payment, but it is NOT the ONLY way to pay for things. So, just get creative ;)

Tip #3: Pick Payment Plans Over Lump Sums

When you have a BIG expense come up and you pay for it all in full, all of a sudden your bank account balance goes way down and the balance you're used to having has now changed. It's important to maintain predictability your cash flow. So if a costly expenses comes up, see if there are payment plans available. A lot of times EVEN IF they are charging an interest fee, it still works out to protect your cash flow in the long run... that's why even at the level I'm at, I STILL ask for payment plans. It's just smart!

There you go - your simple path to taking control of your cash flow. Consider credit cards, other forms of payments, and always go for the payment plans. Not too hard… right, SUPERpreneur?

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