Part 3 of 11 Ideas

11 ideas, part three. So, tip number eight is to actually focus on your cash flow. So I’ve got a picture here of a bathtub. And I think this is the best analogy that I can give. So when we say cash flow, we think of your bank account as being like a bath tub. And you’ve got to think about what’s going out of that account. It’s going out down the drain, literally, your expenses, and what is coming in, what income Do you have what is coming in, and think of money, and the flow of money coming in through the taps, two taps on a buff, hopefully, you’ve got at least two sources of income, and one going down the drain. So it’s really important in these kind of times to focus on your cash flow, the aim of the game is to be ensuring that you’ve got more money coming in than what’s going out. And a lot of people think about how can they increase their income, how can increase their cash flow, and they don’t always think about to be the online opportunities, they might think I’ll kind of get another job. But particularly in this kind of environment, consider eBay and what you might be able to sell online in order to increase your income and therefore improve your cash flow. There are over websites out there. So there’s just a few more that I’d like to mention that are worth looking into. So you’ve got music, magpie, that is a site that buys music, books, that sort of thing. There are a few of those kind of sites out there, such as if it.com and a few others. So if you’ve got old books, you could look at the ESPN code and it will tell you how much they’d give you for the book. Oftentimes, it’s not necessarily a lot but if you’ve got a lot of junk or you’re trying to get rid of things, these are the kind of sites to to put them on. And likewise if you’re looking for a bargain, instead of going out and trying to buy something firsthand, why not look and see what else is out there country is very good for selling things and buying things cheap I got a lot of things when I was putting together a property particularly just bits like furniture and actually country was good for selling things. So there was an old car trailer that was in the garage, so that hundred and 110 pounds something like that so you can get rid of a lot of things locally, buy some some good bargains through Gumtree. So do do have a look at that got a lot of office chairs for like 1020 pounds, whereas if you went first hand on Amazon, they’d be like 50 pounds. And I’m not these things are literally like brand new, just you know, you have things in your house you just don’t need or you just got a new one. And it’s not like the one you’ve got is particularly bad, but just have to get rid of it. You don’t want to throw it away, because it’s not. It’s not a bad item. Sometimes some things are free people just put them out there and just say Yeah, come and collect it. So focus on your your cash flow, what can you be selling pre loved is another website we’re looking at pre loved is it I think a nice way of saying secondhand, so worth checking out. And there are opportunities to fill out surveys online respondent is one of my personal favorites. I’ve done a lot of survey, work with them. Not a lot, but you know, maybe one a month or so. And they pay you for if you’re chosen and selected to participate in market research for your time. So, but these are all options to be in the comfort of your own home, and ways to increase your money or at the same time not have to spend so much if you’re shopping for things on Gumtree or even eBay. Tip number nine is the next step, you really need to start to save your money. So you increase your cash flow. And then you need to start to save some of that money. So if you have bad habits, now is the time to try and shut them. So once you’ve started to save a little bit of money, what you can then start is what I like to call a rainy day fund. So you have a little bit of money in your bank account and take bit aside each time and you start to have a rainy day fund. And then as this grows, this is then your pot of gold which you can then take on to the next level which we’ll talk about in the next slide. So the way to save money, the easiest way and I think very, very simple often overlooked is you basically set up a standing order From your main bank account into your, a new open a secondary bank account can be with the same bank, they often let you set up a new account a new savings account quite easily. And you call that your rainy day fund. And let’s just say on the first of the month, when he goes out from your main bank account into your Rainy Day Fund, and you can start small, oftentimes people say, Oh, I can’t afford it, I haven’t got the money, start small, even if it’s a pound, $1 10 pounds a week, among a day, whatever it is, just start doing that. But the thing is, once you put that in, you leave it there, you commit to keeping it there. So don’t try and do too much just set your set yourself aside, could be a weekly target, or, you know, like maybe every Friday, x Mark goes into the savings fund or every Monday X amount goes into the savings bond, whatever works for you, you can only save if you have a surplus, so it’s no good, or I’ve got a bit of extra money for a few days, let’s put it into the savings account. And then when I need it again, I’ll dip into it. Now, once it’s in the savings account, it stays in a savings account. Now another way, in order to have more money to have this surplus, and to improve our cash flow, so we can improve our cash flow. But you know, this is about finding ways in which we can make more money so that we can then be saving more. So one way to have more money is to actually spend less, easier said than done. I hear you say Lee so well. Yes. But in this case, I’m going to talk about cashback. So cashback is, I’m not telling you not to spend, I’m telling you to spend as you normally would, but using a different payment method. And then that’s how you can get cash back. So I’m asking you to revise where you spend, let me elaborate, you will get better value if you’re able to get cash back. The reason I say this and it’s worth just looking at your spending habits, it’s just because some services some things that we buy, we can delete an arrays completely, we can get a better deal. So I’m going to explain. website and it’s worth just checking out what this is just gives you one idea, if you’re in the UK, as to what I mean, if you check out the website, pay less for your bills.co.uk. And what that is, is it’s a company that is a savings club that offers you five services to choose from. Those five services are Gas and Electric, which is your energy, your mobile phone, your internet, broadband, and landline. So that’s five services. So you can take one or all five services completely up to you. But the idea is that it’s a savings club. So they aim to get you to be able to pay less for your bills. The more services you take, the more you save. And the savings comes from the fact that instead of dealing with five separate companies, so in the UK, you might have for gas equal British Gas for telephony, British Telecom, etc. Instead of five different companies. If you just dealt with one, then that’s a whole savings of admin or whole savings of overheads, you’re not dealing with five different buildings that have all got to be paid for etc, just dealing with one company. So there is a saving when you deal with one company that can provide you with all these services. So there’s a saving in that sense. Plus, they also have what is called a cash back card. And they invite you to apply for that there is no credit check as far as I’m aware, because this isn’t actually a credit card is a prepaid card that you top up and there’s an example on the screen so they partner with visa. I think it used to be MasterCard, I think now it’s visa but it’s a prepaid card. So basically you top up the card. It’s it the when you put money onto the card, it stays on the card, it’s almost like a savings card as well actually doesn’t go anywhere. So you top up the card as often as you like I would suggest once a month topic with Japan, whatever. And then the way cashback works is that you go and shop at all of the partner retailers. So these are just some of the examples on the screen. And my personal favorites where I shop a lot x I do have a cashback card is with Wilco, shopping, lot at Primark, not so much in oxys for clothes but our costs, particularly when I had a property to furnish So you shop as you normally would, in any of these places, and national Express on the coach houses because I’ve got a bike and boots, a lot of boots as well for skincare products. So anyway, you would shop where you will buy what you normally buy, whether that’s food, what all the this cashback is all about is you shop at these retailers instead of where you might normally shop. So no one’s telling you to spend less, but just shopping these places and use this card, watch TO DO IT spend as normal. And then the way it works is that depending on which retailer it is you get anywhere between three and 8% cashback. So let me just give you an example of the last three months. So I get a bill dated the eighth of August on the eighth of each month. So recent bill as of August 2020. So at the time had immobile and my cashback earnings for this month, and it would have been for the preceding monitors. What I spent in July was six pounds and two pence. So I’ve been using the cashback, I’ve been using my prepaid card, I’ve been topping it up spending in the shops, as as per usual, and when I get my bill, my cashback comes off my bill. So instead of the bill being 24 pounds, it was actually 17 pounds 98. And they collected that amount by direct debit on the 28th of August. I noticed that on this because it is a savings club. They also have a refer a friend scheme. So if you introduce a friend, you’ll receive 50 pounds. Or you can join the business as well. But that’s another thing I’ll talk about. But anyway, so then the cashback is applied to your bill. That’s how cashback works in this in this case. So then in September, my bill it was a to the 16th of September. You see I’ve still got my mobile here. But I did a lot of spending in the month of August had the things to buy plus August lockdown, we will release so there was a lot of running a lot of spending to do. And my cashback earnings was there 402 Pon 78 sorry, 102 pound 48. So this was applied to the bill. Now because the bill was only 27 pounds for this one. Then the total amount was actually credited for actually got the cash back into my bank account at the end of September. So I’ve got back 75 pound 48 and that was just because I’d received my cash back was more than what my actual bill was. And so this is the thing so I would have shopped at August let’s say Anyway, we’ll coat anyway, Primark anyway boots anyway. Halfords I want to shop at Sainsbury’s, all of these places. I would have shopped there anyway. But the fact that I use my cashback card, so it is pre paid, I topped it off. I get the money back off my bill. So that’s one way to improve your cash flow. No one’s asking you to spend less, they’re just asking you to use a different route. So instead of spending, usually on your debit card, you top up your cashback card, spend on the cashback card, get money back off your bill. What happened in October? Well, April, October, got my bill. And you see the mobile phones gone up. That’s because I’ve treated myself to an iPhone 11. So the the mobile bill elements gone up because I’m having to pay for the handset. So that’s my total charges my cash back in this month, which would have been for spending done in September was 22 pound 25. And so my direct debit amount was 37 pound 47. So once again, it was applied to the bill. So this is a UK savings club. So I’m sorry if you’re from your listening and you’re from a different part of the world. This only applies for the UK, but I am sure that there are over opportunities for cashback, in your part of the world do a little bit of research. Because I’m in the UK This is what I know about and the company in question. independent research which magazine and others have done research and 93% of customers would recommend the US To warehouse to a friend. And they’ve got more than half a million customers. And it is a discount club. So they give you savings when you switch all your services. That’s all five services. But you don’t have to have all five phone, broadband mobile energy. its simplicity for those that do have one bill for everything. So it helps with your budgeting because it’s all about saving money, and managing where your money goes. If you have one bill, you know, that’s how much you’ve got to pay. And then that saves you having to think write a case when the phone comes out, I need that amount when the internet comes, I need that amount when the mobile comes out, I need that amount, etc. Just got it all on one bill. And it is a British company, and a UK call center. Basically, the more services you take, the more you save. That’s how it works. So savings club. Now, I thought okay, so not everyone is going to be in the UK. So what other cashback opportunity might there be for my global audience. So here we have an example of an Amazon card, and I do have an Amazon card as well. So I can talk about this from experience, too. And I’ve got a platinum card, and that’s the card that I’ve applied for now, if you’ve got an Amazon account, oftentimes, you might have seen it, offer you or invite you to apply for a credit card. But if you apply for their MasterCard, you get a 20 pound amazon gift card upon approval. So that’s 20 pound that you get to spend on the Amazon website. And if you’re like a lot of people, especially in this lockdown, Amazon has done a roaring trade, and I’m sure more and more people buy things from Amazon. So just to apply for the credit card to get your 25 gift card is worth it in itself. If you ask me because there is no annual fee on this card, you get 1.5 Amazon reward points per two pounds spent on amazon.co.uk. And you get half a Amazon report reward point for two pounds spent everywhere else. So therefore, once you’ve got 1000 points, that equals a 10 Pon gift card, and it’s applied directly to your Amazon account. So that is a way to get cashback so if you get a card like this, you put all your spending on this card. Each time you’re spending, you are earning reward points, and then you can apply them on to Amazon. I used to have a cashback card for American Airlines. And I still have my American Express card which has got it’s not so much cashback is actually more you earn travel points with British Airways. But obviously due to everything going on at the moment travel is limited, it’s restricted. So I’m not sure when I’ll get an opportunity to use Bye, bye British Airways, air miles bought. I know I can use Amazon all day every day. So I’m not trying to encourage people to spend what they wouldn’t spend necessarily. But if you do have a credit card and you can pay off month to month, which is what I do my Amazon then it’s worth maybe just putting all your expenses onto this card, paying it off month to month earning some reward points whilst you’re at it. And then every time you get a gift card, it’s a little you know, reward for yourself. Another example of cashback on spending is with a PayPal, MasterCard. So paypal.com if you’ve got a PayPal account, and they’re free to open, you can get 2% cashback every day, every purchase every time you use your card, no exceptions, no rotating categories to keep track of just spend on the using this card and you get 2% cashback and that is applied to your PayPal account. I do have a PayPal card I haven’t got around to using this one so much but there is 2% cashback on the spending and when you use that card, so if you do other PayPal accounts worth applying for the card, and then again, when you spend your money, you get that cash back