Achieving Positive Cash Flow

Debt cannot be eliminated unless you have achieved a positive cash flow. What that means is simply that you’re making more money than you’re spending. Doing the exact opposite is what put you in debt in the first place so now you must reverse it..

This step is probably the hardest one to do, but it is also the most important one. There are two ways to establish a positive cash flow. You can either spend less money or make more money. Since it’s harder to make more money you should first look at ways you can spend less.

Here are a few ways you can spend less money right away.

Water

Do not buy bottled water. Buy a filter, attach it to your faucet and drink from the tap. Bottled water is the biggest scam there is. Imagine, selling you water in a bottle. Just keep a few reusable bottles around and fill those up with water over and over again.

Credit cards

While you may not be able to negotiate your debt down so easily you can however get them to lower your interest rate on some occasions. Credit card companies know all too well about 0% introductory offers so they may be willing to lower your current interest rate to keep you as a customer.

Home heating and cooling

Don’t adjust your thermostat to extreme numbers. You don’t need to make it feel like summer in the winter. It’s the winter, it’s supposed to be cold. Just bundle up and have some hot tea. In the winter, seal your windows to keep the cold out. In the summer, cover windows facing the sun with dark curtains to keep the heat out.

Monthly bills

Check your cell phone usage to see if you’re on the right plan. Cancel your cable service and get Boxee. Call your telephone or cable company and ask for a discount on your services. Save on your electricity bill by switching to energy saving light bulbs and by unplugging (not just turning off) televisions and video game systems when not in use.