Have no money at the end of the month? Here’s how to Create additional cashflow

Many people’s income and expenses are the same: they have no money left at the end of the month after paying their bills. In Tardus, we call this neutral cashflow. While it is better than negative cashflow, here’s a tip I learned from Coach Joe on his Friday “Path to Positive Cashflow” webinar to give yourself a few hundred dollars per month.

Let’s say you receive $3,000 per month and your expenses are $3,000 per month.

Of those expenses, let’s say you pay $500 in credit card bills. That means $2,500 is probably paid for in cash. Of that $2,500 in cash expenses, let’s say that $1,000 of it MUST be paid in cash. That means that $1,500 of your expenses can be pushed onto your credit card for the whole month and then you send $1,500 to the credit card.

What does that mean? It means you no longer have a $500 per month credit card bill because you are sending $1,500 for the credit card accumulated balance which covers the $500 credit card monthly payments.

Yes, you do end up with a bit of a credit card balance every month but if you do the math, it works out that giving yourself this extra $500 every month is worth it.

It gets better

if you have a rewards credit card, then you are getting rewards points on $1,500 of spending.. Coach Joe and his wife flew business class to the Phillippines for free, a $10,000 value, because of the American Express Gold rewards points he built up this way

Time to go locate a rewards card and put this into action

What good is talking about this if I don’t do it myself? Time to go look at my expenses (I like using Monarch Money for studying my budget) and my credit cards and see which card gives me the most rewards for paying.