February 2010

According to economists and financial planners, there are several ways to improve cash flow in order to save more money and buy only the things that really matter to you. Here are eight tips to implement this system:

1. Keep track of how you spend your money.
   Keeping a detailed description of where your money goes, you can get an adjustment of their finances and improve your cash flow. If you are looking to raise extra cash, you can also consider selling any unwanted items that you may have around the house and sell them over a period of time to raise some cash flow. For example, if you want to sell any broken gold that you might have, now is a good time as gold is currently fetching record prices. You can get personal finance software available to help you make all these calculations, and make comparisons from year to year.
2. Refinance your mortgage.
   If you are paying above average interest on your mortgage, refinance your loan may mean reducing a significant amount of their monthly cash. Or better yet, see if the bank is willing to modify their mortgage agreement with interests that fit today’s market-without paying refinancing costs.
3. Reassess your relationship with the Bank as a result of bank mergers in recent years, many consumers do not know what kind of services they are paying, or who are paying. Carefully review your needs with respect to the activities he has with his bank, and then go to other banks to offer and know that there are options in the competition. The key to reducing the cost of banking is to find a bank that charges as little as possible for the services you use most often.
4. Reduce your insurance costs.
   There are companies that reward with reduced rates to owners of cars that never collided. Then there are those who, for the cost of insurance, including additional services, such as cranes or minor cracks repaired. Find out which companies provide this service in your country and stop paying for expensive insurance and with few facilities that only have a good marketing.
5. Take a look at your real estate taxes.
   In many countries, real estate values have leveled off or have declined. If your tax burden is above the resale value of your home, consider addressing the City to handle the compensation for the difference.
6. Reduce your debt with credit card.
   It makes little sense to pay the typical interest credit cards, the order of 40 or 50 percent annually when there are other options. If your debt with the credit card is having a negative effect on your cash flow, consider getting a personal loan in the same or another bank to refinance at an acceptable rate on money owed, and definitely restrict the use of your credit card.
7. Automate your banking.
   Today, many banks charge a fee for doing operations on “window”. If you handle completely with ATMs, not only will save this amount, but also save valuable time lost in queues, which undoubtedly will also mean an economic gain. Restrict operations in “window” when you have to make deposits of large sums of cash as the deposit slip will serve more in the case of any trouble.
8. Change old habits.
   Think what you will spend your money first. Bring lunch to work instead of buying … borrow books in the library instead of buying new ones … make phone calls at times when rates are lower. The small but regular changes, such as those identified above will help you improve your cash flow and make great strides toward a more secure financial life.

Taking into account that the cash flow allows:

• Deciding the best mechanism for short-term investment where there is excess cash.

• Take necessary measures to define the source of funding when there is a shortage of cash, and manage resources to be the owner, or possibly initiate the necessary procedures to obtain loans to cover these missing and allow the operation of the company .

• When and in what quantity purchased loans are payable in advance.

• When making major outlays of money to keep operating the company.

• In terms may be available to pay additional benefits to employees such as the Christmas bonus, vacation, profit sharing and so on.

• With much cash may be available for personal business without affecting the normal operation of the company.

Some of the major decisions that affect cash flow are:

1. Promptly invoicing
2. Create incentives for upfront payments
3. Avoid the outset to delinquent customers
4. Reduce inventory
5. Consider Consolidating Your Loans
6. Increasing Credit Limit for Customers
7. Minimizing billing problems
8. To improve the possibility of recovery
9. Methods and Tools Collection

Cash Flow can be calculated for any span of time: daily, weekly, monthly, yearly … that need.

One must take into account that in times of high inflation or fluctuations in exchange rates, we must anticipate the rates, and affecting the corresponding period. As they arise, will the actual turning.

This not only applies to inflation or the exchange rate itself, but to see everything that is replicated by them (eg, salary increase, imports, goods oligopoly, etc.)..