The 2 Levers of Cashflow

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It’s not just business, it’s personal.

I have talked about the 3 factors to growing a nest egg: Time, Rate, and Lump Sum – but there’s also a dynamic duo that has more to do with cashflow than it does growth.

And that is:

Income & Expenses

These are the 2 levers you can pull to manage your cashflow.

It sounds so simple, but it’s 100% true and the only (legal) way to create margin in your finances outside of your investments.

Increase Income

Go and get that bread, friend!

There are many ways to increase your income. The lowest hanging fruit will be with your current job: can you ask for a raise? Can you work overtime? If either or both is a yes, look no further: you have cash on the table waiting for you to grab it.

You can start a side hustle. My kids just “raked in” $300, literally. Going door-to-door raking leaves with $5 yard sale rakes and some effort. There are so many side hustle options these days.

Have stuff laying around? Those aren’t old Starting Lineup figurines – those are assets, baby. Put them on eBay. Start cruising yard sales and flipping stuff online.

Reduce Expenses

Reducing expenses is actually the easier lever to pull – at least in a tactical sense. It’s tougher mentally than increasing income, though.

For example…

Yesterday I read that this Black Friday / Cyber Monday (ahem–”BFCM” if you’re an e-commerce junky) was a banger for retailers both online and in the flesh.

And then today I read that over $1B of those sales were on a “buy now, pay later” basis.

Zoiks, Scoob. That’s not good.

We are talking about a LOT of people who can’t say “no” to their shallow desires, despite not having the actual cash to buy the stuff.

In a world that wants you to say “yes”, learn to say “no”. Be the oddball. Embrace the weird. As a wise man once said, “deny yourself”. Create margin in your life.

Say no more often, get creative, have an iron will, and invest!

P.S. – Don’t pinch pennies… build a profit machine.

Profit Hiker is my program to help business owners discover hidden profit, create margin, avoid financial struggle, and finally feel the freedom of a business that works for you.

There are 11 trails to gain lasting elevation in your business, and I have the maps waiting for you. I have a free thrice weekly newsletter loaded with tactical tips and mindset guidance just for small business owners. Check it out: https://newsletter.profithiker.com