How To Improve Your Monthly Cash Flow In 2020
Regardless of whether you have set “financial improvement” as one of your resolutions for 2020 or not, it is vital to understand that everyone faces financial challenges from time to time. To overcome economic hardships that could force you to live from paycheck to paycheck or accumulate heaps of debt, it is vital to watch your cash flow and improve how you utilize your money.
To help you power through financial struggles when they arise, MASSMortgageGroup.com has listed two common financial problems you may face in 2020, and how to improve your monthly cash flow to solve them.
Balancing between your earnings and expenditure
Managing a balance between spending and saving can be very challenging, especially during the end of the year, as we tend to overspend in December or during the Holiday season. To help you start spending diligently again, it’s vital to track your spending history. We’ve all unintentionally made impulsive purchases. But, if you notice that you purchase what you do not need or plan to when we are at the gas station, grocery, convenience, or any other stores, you need to take a moment to observe your expenses very carefully. Watch for impulse buying, always make a list and stick to it, and schedule your grocery shopping for once a week. Also, use cash instead of your credit cards to pay for your purchases. Credit cards are more convenient to use, which makes it tempting to make random purchases. But, by allocating a budget for your shopping, you will withdraw just enough cash from your account to buy essentials. Similarly, you will not have excess money to make unnecessary purchases.
Finding extra cash to pay out your debt or starting the habit of saving
If you need additional funds to meet new but mandatory expenses, there are different ways to save up for these costs. You can start by checking and double-checking your bills and all the services you are receiving. See if you can find services you don’t use or can live without, and then cancel them. Do the same thing with your bank account fees and services.
Another way to save money is to take advantage of your mortgage prepayment option. Almost all lenders offer some type of prepayment option on your mortgage, meaning you can have a lump sum payment towards your mortgage without penalty or increase your monthly payment to a certain amount. You can exercise both or either one. However, before you make any changes to your repayment portions, speak with your mortgage specialist for advice.
Next, you can watch out for high-interest debts that are choking your cash flow. If you have enough equity accumulated on your property, you might consider consolidating all your debts with your lower-rate mortgage. Not only will you save a significant amount on your debt payments, but you will also make them more manageable.
In case you need advice on how to achieve this, we are here to help. While we are not financial planners, we believe that revising your mortgage and your credit status is the first step to set you up for sound financial planning for the year.
If you are a homeowner looking to improve your monthly cash flow and are willing to plug the money leaks, following these tips will help you make the most of your earnings. For more tips, reach out to MASSMortgageGroup.com. We specialize in residential and commercial mortgages for clients across Scarborough, North York, Toronto, Newmarket, Richmond Hill, Aurora, and Markham, Ontario. Each of our mortgage agents or brokers specialize in one lending area. This allows the whole team to access more lenders and programs and create a convenient, one-stop-shopping environment for you and the rest of our clients.