Cash flow is notoriously fickle. It's a well-known fact that a lack of cash flow is the reason that 82% of small businesses fail.
Just because you have money doesn't mean you're necessarily able to access it. Or you might need more than you had anticipated.
Cash flow is actually a more complicated concept than it might seem at first glance. One thing you can say with certainty about cash flow, however, is that more is better.
Let's look at some ways you can maximize cash flow so you can take back control of your financial future.
Lease and Don't Buy
Many of the tactics to increase cash flow are intended for business owners, as they're predominantly the ones who talk about this issue using this terminology. Even if you're talking about personal finances, you can reverse engineer a lot of these principles to maximize cash flow in your personal life, as well.
One piece of advice given to business owners is to lease the equipment they'll be using for business instead of purchasing it outright.
Advocating for leasing instead of purchasing goes against the grain of the standard narratives surrounding business. It's usually said that building capital is better than making monthly payments. Monthly lease payments tend to be far, far less than the outlay for making a purchase, though.
This means you have more access to cash flow in your monthly budget.
Offer Discounts On Early Payments
One of the things that causes complications with cash flow is the inability to know when it's coming. Just because you've got money coming to you doesn't mean that people are going to pay, let alone in a timely fashion.
One good way to improve your regular cash flow is to offer some sort of discount for people who pay what they owe early. This technique is actually a win-win for you and your customers, both, and will help to win you good favor at the same time.
Seek Out Passive Income
Passive income is the Holy Grail of personal finance. Financial advisors universally pay homage to passive income and for good reason. Otherwise, you're essentially just taking on another job which can be financially rewarding but is far less exciting.
Passive income is anything that earns you money without you having to do any extra work. Think of an author's royalty payments for one common example of how passive income works and also why it's so attractive.
An investment property can be an attractive source of passive income if you get things set up properly. Working with a property management company automatically sets you up for success with your investment property. They'll handle the business aspects so all you'll have to do is sit back and collect your payments!
Are You Looking for Property Management in Spokane?
Real estate is one of the most solid investments you can make and has been for some time. With the prices of homes continuing to rise this isn't stopping anytime soon.
If you're looking for world-class property management in the Spokane, Washington area to maximize your cash flow, contact us today and let us know how we can help you!