Take Advantage and Maximize Your Money with Cash Flow

Take Advantage and Maximize Your Money with Cash Flow

Cash flow can be one of the most powerful tools for maximizing how much money you save and spend. Understanding how cash flow works and strategies to increase cash flow can help you start taking control of your finances. You can also move closer to your financial goals and ambitions. Feel free to contact a Chattanooga bankruptcy attorney if you have questions related to bankruptcy.


cash flow is like a ratio of how much money is being spent versus how much money is being saved. Taking control of cash flow has the potential to help you save more money. This starts by knowing the difference between a negative cash flow and a positive cash flow.

When someone is spending more money than they earn through their income, this is called a negative cash flow. In other words, money is being spent faster than money is being made. What this leads to is saving less money and the total amount of money in savings being slowly drained.

Whereas, a positive cash flow happens when someone is making more money than they spend. This is what many people strive for, to make and save more money so that they can spend money without depleting their finances. Those with high-paying jobs may not struggle with this as often.

However, those with jobs that pay them about as much as they spend on bills and other necessities may struggle with maintaining cash flow. People with lower incomes may struggle even more.


There are multiple strategies, like using a spending plan, that can help you achieve the positive cash flow you desire. The first step is to write down your monthly income and then a list of your monthly expenses. This includes bills, gas money, debt payments, entertainment, and miscellaneous expenses.

Compare your monthly income and monthly expenses by subtracting them to see what is left over. This will tell you whether you have a negative, neutral, or positive cash flow. Circle the list of expenses that must be paid and prioritize those over other expenses. Cut unnecessary expenses then recalculate your cash flow.

Other tips for cash flow include negotiating dates for bill payments to occur after your paycheck and breaking large payments into chunks. Many creditors and lenders will work with you if you explain your financial situation. Consider asking for level payment plans to cover utilities instead of dealing with varying bills.

Identify the payments or costs that are hurting your finances the most. Then start strategizing solutions, whether they be debt consolidation, selling things, refinancing loans, or exploring debt repayment options that work better.


When a negative cash flow starts leading to severe debt, some people find themselves turning to bankruptcy. Feel free to call us at Tom Bible Law by dialing (423) 690-7712 today for a consultation about your financial dilemma. Our legal team of Tennessee bankruptcy lawyers might be able to help you overcome your financial dilemma through bankruptcy. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.