Instant Cash Flow
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While investigating ways to provide instant cash flow, the choices seemed so limited that a person would more profitably spend time constructing their own methods. Apparently, the main choices for providing instant cash flow were to read and follow the latest popular book on the subject, devise a way to do financial gymnastics with various aspects of a business in order to appear to have more cash, construct a self-perpetuating income stream by selling a product or service or pay outrageous APRs to a payday loan service. Some options seemed better than others, but some appeared to be flirting around the edges of what is ethical. Most seemed to either relegate one to the status of a sheep (read and follow), an accountant (the ethically challenged type), a slick salesman, or a full-time borrower (pay someone outrageous interest rates.) None of these choices was particularly appealing, and some seemed unethical.
Cash flow is important, both in business and personal finances. Even profitable businesses have floundered because they were unable to afford their own success. A business may look great on the books, yet struggle to keep enough inventory or to pay creditors on time. Some 'solutions' offered for providing instant cash flow suggested that a business owner delay paying creditors or vendors for several weeks, in order to provide the liquidity needed to run the business. However, this action seemed somehow dishonest, and also appeared better suited for 'how to alienate creditors and vendors', which does not seem like a wise practice for long term relationships with these necessary partners in a business' success. The only way to accomplish this in an honest fashion would be to explain the situation to the vendors in advance and work out a plan where any delay in payment was agreed upon by both parties. Vendors would probably be willing to work out a solution if a solid customer faithfully paid accounts on time, and continued to keep up with current agreements.
Personal financial liquidity would work along the same principles. At times everyone feels the pinch from unexpected expenses. However, if a person is continually in a desperate scramble to pay bills on time, perhaps it is time for a close look at how finances are being used. Although many people do not like the idea of a budget, it is well worth the time and effort. The alternative, which is constantly being under stress about financial matters, is far more costly in terms of health and peace of mind. Utilizing a budget will soon lead to ideas about manufacturing some instant cash flow of one's own. The best part is that experimenting with this program will not cost any money.
Whether it is a business or personal financial situation, take the time to see where money is being spent. Write down every expense in an inexpensive notebook as it occurs, from small items like daily coffee break expenses or parking meter costs to large items like rent, mortgage and expenses involving business or personal vehicles. Most people are largely creatures of habit, so it may not take more than a week or two to spot certain trends regarding where money is leaking out. Businesses are a bit more complicated, so that aspect may take longer before trends become evident. Soon, clear patterns should emerge. A person may be surprised about the impact which small actions have upon a budget, and equally delighted to observe the instant cash flow which can be generated by changing even a few costly habits.
A budget for a business or individual is a personal matter. Only that person can really determine which budgetary items are truly important for accomplishing his or her goals. After noting particular spending patterns, take some time to think about how adjustments can be made to better use the money for actions which move one closer to important goals. Eliminating unnecessary expenses can be difficult, but this is sometimes the only way to generate instant cash flow. There is also a great feeling of accomplishment in knowing that the decisions made and actions taken will continue to free up money for reaching further goals. Rather than spending money on payday loans with their exorbitant interest rates, or on late or over-limit fees, this money can be kept and invested in one's own endeavors. While a certain amount of sacrifice, or at least delayed gratification, will be necessary, the rewards in terms of cash flow improvement (not to mention peace of mind) will soon become evident.
Along the way, decide to put aside some money regularly into a savings account. If possible, have this amount deducted automatically from each paycheck. That way, savings will not end up becoming neglected or forgotten altogether. Do not worry if the amount which can be put into savings is very small. Proverbs 13:11 offers this encouragement: "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase." Small, regular contributions can soon add up to significant amounts. In time, financial vehicles such as certificates of deposit, money market accounts or other means of gaining a better rate of interest can be employed for these funds. Be sure to read all terms of such agreements carefully for fees which may be charged for early withdrawal. Keep some assets in an account which can be accessed without penalty for emergencies which require instant cash flow.
When a person or business reaches a significant goal, such as having enough money set aside in a savings account for several month's expenses, take time to celebrate. This is an important way to maintain perspective and regain the strength to continue to follow the practices which have provided some instant cash flow. Just be careful not to undo all the work that has been accomplished! Remember to take the time to thank others for their contributions to your personal or business goals.
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