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Making Tough Financial Decisions

March 8th 2016

If your goal is to improve your cash flow so that you can simply afford your monthly expenses, there are some hard decisions you have to make.  If you have gone through the process of looking at all of your expenses to eliminate or reduce them, you are off to a good start.  If you’ve hit a wall, it’s time to take the next step by looking at your income and  fixed expenses to see what changes can be made there to improve your financial situation.


If you own your home, consider the following:

  • Refinance your mortgage to consolidate, and/or lower your monthly payments.
  • Take on a renter to increase your cash flow
  • Downsize to a smaller home.  If you have debt, perhaps the equity can eliminate or reduce your debt.  Downsizing to a smaller home should reduce your mortgage payments, taxes and utilities.

If you rent:

  • Take on a roommate to help with the rent
  • Move to a more affordable home/apartment
  • Move back home with parents/relatives 


Is it possible to earn more income to cover your monthly expenses?  Consider taking on part-time employment.  Perhaps you can make money by offering your  part-time expertise through self-employment in services such as tutoring, snow removal, cleaning, painting, home repairs, bookkeeping services or computer repair, to name a few.  Think about your talents and expertise and put those skills to use.   

Making Decisions

Before rushing into any decision, take a look at how the changes you are considering actually impact your financial situation.  Run the numbers to ensure that you are making a wise choice – what will your new budget look like?  How do these changes help your financial situation?  List the pros and the cons.  When you decide on the best option for you, focus on the positives, whether it be no debt, having a savings plan or having sufficient cash flow to meet your monthly expenses.  You are on the road to financial wellness and a healthier, happier you!

Written by Betty Anne Flynn