Do you need extra cash to pay off credit card debts? To go on vacation? Just to make ends meet?
Here are five ways to find extra cash today:
- Adjust your withholding. Do you typically get a large tax refund? Instead of giving Uncle Sam an interest free loan each year, why not reduce your withholding so that you get more back with each paycheck?
- Refinance your mortgage and other loans. We are experiencing some of the lowest interest rates in our history. Now’s a great time to refinance mortgages and car loans to lower interest rates. Lower interest rates mean lower payments and more cash in your pocket for other things.
- Review your insurance policies. Do you have too much coverage on older vehicles? Can you raise your deductibles? Do you have life insurance policies that you no longer need? Are you getting all of the discounts you are entitled to (multi-line discount, good driver discount, etc.)? Reviewing your insurance coverage once a year is a good idea, and it can result in extra cash to use towards other financial goals.
- Consider dropping your home phone line. Do you really need a home phone and a cell phone? Many people are opting to drop their home phone in favor of the cell phone. This can save you an average of $30-50 per month.
- The Latte Factor – David Bach introduced the Latte Factor in his book The Automatic Millionaire. The Latte Factor refers to the money we spend each day on luxury items such as premium coffees, going out to lunch every day, and other discretionary items that aren’t necessary. Think about your spending habits. What is your latte factor? Do you go out for coffee every day, do you go to the bookstore several times a week? What frivolous thing can you take out of your budget? You may find that you don’t even miss it!
Reviewing your spending may reveal many other ways to find cash. I recommend that you start keeping track of how you spend your money today – you’ll be surprised at where it goes, I promise!