The Best Ways to Quickly Improve Your Cash Flow

.freemoneyfinance.com/2008/11/how-to-make-money-and-save-money.html”>saving money, so if you’re really serious about cutting costs, check out that post. But here’s a list of areas where many people can cut costs quickly to improve cash flow — especially those who have never had a budget and are looking to get into financial shape. I’ve counseled scores of people just starting their budgets and looking to improve cash flow so they can pay off debt, and these are the most common spots to “find” money:

• Premium TV packages – Does anyone really need 500 channels? Or 250 for that matter? Cutting from a premium cable or satellite service to a basic one can improve cash flow immediately in a big way ($50 to $75 a month.) Want entertainment? Read a book (free at the library) or watch one of the 30 channels on basic TV.
• Eating out – We all know that it’s a lot less expensive to eat at home, right? So why is it that people with money issues always seem to eat out three or four times a week? Hmmm, maybe there’s a connection here. At $30 a pop, eating out once a week (or even a month!) versus three times a week will add $240 per month to anyone’s cash flow. Cha-ching!
• Movies – A family of four going to the movies and wanting snacks can easily drop $50. Instead, stay home, rent a movie ($5 at most), and pop popcorn. Do this a couple times a month and save $100.
• Vacations – Many with money troubles seem to take very nice vacations — a lot nicer than the ones I generally take. So how about staying home this year and pocketing the $3,000 to $5,000 you’re forking over for a cruise or trip to Europe?
• Hobbies – I’m all in favor of turning a hobby into an income, but most people do the opposite — they sink a ton of money into a hobby that never makes a dime. Now I’m not saying you shouldn’t enjoy life, but can’t you do something for fun that’s not so expensive?

Looking at this list, you’re probably thinking I’m the biggest kill-joy alive. But if people are in financial trouble and need to pay off debt, the fact is that they have been having too much “fun” (and spending accordingly) for their income. They need to back it off a bit — not everything, just some things — so they can come into balance and get out of debt. Then, as the do that and also increase income, they can slowly add back the things they enjoy doing which they can now afford.

Do you have anything to add to my list? Any ways you’ve noticed to cut spending and improve cash flow quickly?