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How To Create More Cash Flow During The Coronavirus

by Financial Design Studio, Inc. / March 22, 2020

how to create more cash flow during the coronavirus fee only financial advisor deer park barrington chicago II

How To Create More Cash Flow During The Coronavirus

Increase Cash flow With These Tips

Here are some things you can do if you find that you need more cash flow and have a lower income. We will go through some tips of what you should always do, but especially now with Covid-19 income changes.  The government has actually increased the amount of time some of these benefits are available to you which is a very good thing!  

how to create more cash flow during the coronavirus fee only financial advisor deer park barrington chicago auto insuranceHomeowners Insurance & Auto Insurance Deductible Update

Check out your homeowners insurance and auto insurance. If you have an emergency fund of 3-6 months, which we always encourage you to have, you can increase your deductibles on your insurance policies. For example, you could go from $250 to $1,000. What that does is decrease the premium you pay. So maybe that little bit of income you keep could make a big difference for you. Just call your insurance agent and they can help you with that.  

Tax Refund & Extended Filing

It is tax season and as you know, you may be getting a refund. If that is the case, you want to file as soon as possible. This way the IRS sends your tax refund back to you to put in your pocket. This is especially nice if cash flow is what you need right now. Also with taxes, the government has extended the due date an additional 90 days to July 15, 2020. Let’s say you don’t think you’re going to get a refund, you can wait longer to pay that bill.  Now, this is for Federal returns, but check your specific state for the state return. Go ahead and look up your specific state here to see if there is any relief in your state too. 

how to create more cash flow during the coronavirus fee only financial advisor deer park barrington chicago auto insurance home mortgageMortgage & Auto Loan

Check with your mortgage or auto loan whether this is through a bank or other credit company. Some actually might be waving what is due at this time. Now remember, the payment might be put off, incurring interest, but it is some relief. So again, you are keeping more in your account and decreasing the amount that has to go out. Communicate with your provider and let them know if you have been laid off and if there is anything they can do. 


Because rates have dropped, if your mortgage rate is 4-5%, it would be a good idea to reach out to your mortgage lender. They can see if you qualify for a lower rate. This will make a difference continually overtime. Because rates have dropped so low, this can make a difference for you even if you go from 30 to 15 years.  Don’t be surprised if they are a little slower at responding on the process since everyone is refinancing right now. They are a little swamped with the lower rates and influx of applications. 

Low Interest Rate Business Loans

There are resources for you to apply for a really low interest loan for up to 2 million. Some small business owners might just need additional resources now.  

Stop Retirement Contributions

If one person in your family normally contributes to retirement, but one doesn’t, you may need to stop retirement contributions to increase incoming cash flow for a bit.  Or if one person’s income has decreased, then reducing retirement contributions might help.  Remember, you’re a team so pool your combined benefits and income together to help your overall household income when needed.  Just be sure to turn these contributions back on when things return to normal and you are able to.

Investment Opportunities

Believe it or not, there are some investment opportunities in the market today. Some ideas you can do now if you find yourself where your income is continuing with cash flow like normal, is to take advantage of the lower market prices. If you usually wait until the end of the year to contribute, you could start earlier in the year and invest now when the market is lower than it was a month ago. Be sure you don’t put in money you’ll need later in the year.

An opportunity is a Roth conversion. They are something you could do now to be growing tax free today for when the market comes back.   Love these money saving ideas? Share them with your family and friends on Facebook! Wondering how this affects your future finances? Schedule a call with Financial Design Studio, financial advisors in Deer Park, to discuss your portfolio today.

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Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.