How to improve your monthly cash flow

Start with a clear picture

1. List your take-home pay for each pay period.
2. List fixed bills that can't move, such as rent or mortgage and loan minimums.
3. List everyday expenses: groceries, gas, utilities, insurance, subscriptions.
4. Subtract both lists from your pay. That number is your monthly cash flow.

Practical ways to widen the gap

• Cancel or pause subscriptions you don't use.
• Call providers for insurance, phone and internet to ask about lower rates.
• Plan meals for the week to cut takeout and food waste.
• Ask card issuers about lower rates, especially if you have a good payment history.
• Look for short-term extra income, such as overtime or a side job, and send it to debt.

Freeing up cash as each debt is paid off

When a debt reaches zero, its payment doesn't disappear. Roll it into the next debt. Each payoff makes the next one faster, which is the momentum behind most debt payoff plans.

Every result depends on your income, interest rates, card terms and payment behavior. Nothing here guarantees a payoff date or a credit score change.

Keep learning

• Cash flow cycling, explained simply
• How to read a credit card payoff estimate
• Paying off debt before buying a home