The 10th & 24th Rule For Cash Flow Management

| By Mike Michalowicz (Google+)

When does your company pay bills? When you have the cash? When your bookkeeper gets around to it? When you get a collections notice?

Paying sporadically prevents you from ever mastering your cash flow. Its time to pay bills regularly. Do this by paying your bills only on the 10th and 24th of each month. If those days fall on a weekend, pay the bills on the Friday before.

Paying bills twice a month gives you better control over your cash flow. It allows for some bills to accumulate so you can prioritize what to pay and when. After only a few months, you will have a much better understanding of how much cash you need to flow in every few weeks to cover your bills. And you will know what bills you need to cut once and for all.

By paying on the 10th, you can use your banks auto-pay and still get checks to your vendors for deadlines on the 15th of the month. The 24th date ensures your checks are delivered before the 1st of the following month.

Do you personal distributions, if you have an LLC or sole proprietorship, at this time too. With this simple discipline you will no longer be shooting from the hip when it comes to cash management. And that means much better money decisions.

A woman holding up a 10 and a 24 with money in her teeth

Posted in Cash Flow, Money Strategies,

2 Responses to “The 10th & 24th Rule For Cash Flow Management”

  1. […] while back Mike wrote a blog post titled, The 10th and 24th Rule for Cash Flow Management.   You know I can’t pass up anything with the words “cash flow” in the title – I’m […]

  2. I am working on a new book concept and may include more details on this. Just a heads up!

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