Controlling Cash Outflows Series
There are many components to your personal finances that are important areas to monitor and manage. Typically, it is best if you can treat your finances like a business and focus on your Cash Inflow and your Cash Outflow.
Many of us have fixed incomes whether it is in the form of a salary or even if it is an hourly rate, there are only so many hours you can work and multiply it by that rate. We typically have a limited capability to increase our cash inflows unless your boss is a push over and will give you a bonus on demand!
Our Cash Outflows are usually much more flexible. In the age of credit cards, it can be extremely flexible. An average consumer can spend everything they have in the bank and everything they will earn in disposable income over the next couple of years if they max out a couple credit cards in one shopping venture. Fortunately, not too many people fall victim to this kind of spending.
That doesn’t mean the rest of us might not fall victim to Binge Shopping habits. Often if we go shopping for items, we will buy a product at the spur of the moment (usually enticed by something the savvy retailer has done to sell us on it.) We may not max our credit cards out in one shopping spree, but it is all too common for people to max their cards out over a couple year period and much of this comes from buying more than they set out to buy and more than they need.
This week I will cover a series of articles on Controlling Cash Outflows to help you control your cash outflows and find ways to:
- Avoid maxing out your credit cards
- Maximize your savings when shopping
- Learn how to recognize a truly good spontaneous deal
- Recycle your extra stuff not only for the good of the environment but for the good of your pocket book!
We may not be able to directly and rapidly impact our Personal Earnings, however we often have a great deal more control over our Cash Outflows. By the end of the week, we will work to empower you to maximize your ability to control your Outflows and maybe just in time to make for a more enjoyable holiday!
December 20th, 2006 at 4:03 am
[…] Yesterday, we discussed our intent to help people learn how to control their Cash Outflows. There is no genie in the bottle of the Credit Cave that will fix all of your problems however we will now start to empower you to tackle or prevent credit issues. […]