Emergency Cash Flow Strategies

If you or a family member has experienced a major financial setback such as a layoff or a divorce, there are a number of things you can do quickly to help your cash flow situation and avoid going into debt. Some of these tactics also might be useful to help with your household budget if you are a stay-at-home mom or are taking some unpaid maternity leave. There are only two ways that I know of to help your financial situation: Bring in more money OR pay out less money. If you are a busy parent, paying out less money is usually the easier option.

• CANCEL everything you can. Cut back to basic cable or cut the cord entirely. With video streaming services such as Netflix and Hulu, you will still have plenty to watch. You always can expand your cable service in the future if you find you miss it. Even just calling your cable company to ask about specials can sometimes get you a better deal. Get DVDs from the library or Red Box. Still receiving actual paper newspapers or magazines?  Stop the subscription and ask that you be refunded any balance. Reduce your Internet speed, phone data plan, home security service level, cleaning service, lawn service or any other monthly subscriber services that you can. Still tied to a land line phone?  Try a month without it and see if you really need it. Call your utility companies to see about a level payment plan. This can help you budget so you aren’t hit with huge heating/cooling bills some months.
• FEWER LESSONS. Take a break from any lessons or extracurricular activities that are not essential to your children’s happiness. With most lessons ranging in cost from $50 to $100 per month, even a one- or two-month break can give you a little financial cushion (plus you will save on gas!). Even if you have a contract, explain the situation to the provider and see whether they will work with you. Sometimes you can pay per lesson. While this is not the most economical, it allows your child to stay involved in the activity, even if it is less frequently, while still saving some cash. Take advantage of free trials offered by many children’s activities. The same goes for gym memberships. If you are not using it enough to make the per visit cost a good deal, cancel it if you can, then purchase punch cards or day passes. Use this break from your gym to check out others. Many will give you a week free to try them out—just be sure you can resist the hard sell. Don’t let the kids’ unstructured time fill up with video games or the “I’m bored” chorus. Seek out free or discounted community events, museums, etc.  Many grocery stores, home improvement stores and libraries offer free or low-cost events for kids. 
• LIMIT OR BAN EATING OUT. Not forever, just for a set period. Even buying prepared meals from the grocery store or picking up pizza or take-out is less expensive then dining at a restaurant. You can supply the beverages and supplement the side dishes with less expensive options—plus, no tip!  If you do eat out, look for kids-eat-free deals or Groupons to make the cost more affordable. If a family of four eats out at a casual dining restaurant once a week for a month at a cost of $30 to $40 per trip, you can save up to $160.00, less the cost of preparing those meals at home. For $160.00 you can buy 10 to 12 main courses that serve three to four people at meal prep stores, such as Social Suppers or Dream Dinners and have money left over for side dishes and dessert. And just because you prepare the food at home doesn’t mean you have to eat it at home. Meet friends for a bring-your-own picnic party at a park. Raid your pantry and freezer, too. Basing just one meal a week on main ingredients you already have will trim your grocery bill.
• DEBT MANAGEMENT. If you are paying on credit cards, car loans or other debts, make sure the way you are paying is the most economical. Look at the interest rates on credit cards on which you carry a balance. These can vary significantly and may have changed since you opened the account. Transfer the balances to the lowest interest rate card. It may make sense to take out a home equity loan to pay off high interest credit card debt. Likewise, take a look at your mortgage. If you have not refinanced in a while, current interest rates may make it a good time to do so.
• CASH IT IN OR RETURN IT. Most households have a gift card or two that are sitting in a drawer collecting dust. If the card is not something you will use, sell, exchange or re-gift it. You can sell most merchandise credits and gift cards on Ebay, and numerous websites are devoted to exchanging gift cards. Have you recently purchased any big ticket items you have not used that could still be returned or sold?  Selling items you have already purchased, like season tickets or sporting event passes, can net you a good percentage return on the original purchase price. Look for inventory in your own house. Take those unused clothes (kids’ or adults’) to a consignment or resale shop. Play It Again Sports will give you cash for used sports equipment. List unused furniture, tools, etc., on Craigslist.
• DON’T ATTEND EVERY EVENT. Don’t feel obligated to attend every single one of your child’s classmates’ birthday parties, every baby or wedding shower or every happy hour you are invited to. If it is not a close friend or family member or an important work contact, maybe you can skip it this time if it would be a financial burden. Another way to save money is to reduce the need for babysitters. Trade babysitting with other parents. Host a parents night out at your house for your friends’ children. The kids will have a great (free) time, and hopefully the other parents will return the favor.

            While these strategies are not intended to be long-term, they can help in a financial crisis until you get back on your feet.

Laura Miller McEachen is a part-time attorney and full-time mommy.