2. Five Ways to Find More Cash

If you're struggling to make ends meet and are juggling payments and sources, then any extra cash can make a big difference in your financial situation. Cutting back on spending definitely helps. Here are five additional ways you may be able to free up more cash without making big sacrifices.

1. Increase your insurance deductibles.
   • Raising your auto insurance deductible from $250 to $1,000 can lower your premiums by 15% or more. And with a higher deductible, you'll be less likely to submit small claims that could cost you a “good driver” discount.
   • Raising your homeowners insurance deductible from $250 to $1,000 can lower your premiums by as much as 25%…as well as discourage you from filing small claims that could result in getting dropped by your insurer.
   • Concurrently, add more money to your Emergency Fund to help cover extra expenses, should you have an accident or home emergency.
2. Consider refinancing your mortgage. If you have a high rate mortgage or an adjustable rate mortgage that is about to jump, calculate if you can benefit from refinancing. If you have a good credit score, you might lower your monthly payments by hundreds of dollars.
   • Remember, however, that closing costs are generally about 2% of the outstanding balance, so you'll need to assess if you plan to live in your house long enough for the monthly mortgage savings to cover — and exceed — the closing costs you'll pay.
3. Adjust your tax withholding. If you're used to getting a sizeable refund at tax time, you may want to reconsider how good that feels once a year with your need for extra cash now. Most people could benefit by having extra money in their paycheck each month. And getting a tax refund once a year means you've given the government an interest-free loan for the year. Tell your employer you need to file a new W-4 form so you can increase the number of allowances you are entitled to claim on your tax withholding.
4. Review your cell phone, cable and Internet plans. Review your plans every few months.
   • Are you paying for more service than you actually use?
   • Have you taken advantage of all the available special deals you might qualify for? Providers are regularly offering new perks to try and keep their existing customers.
5. Keep track of your daily expenses. Even if you don't want to keep a detailed budget, you should occasionally write down how you spend your money for one day. You may be surprised at how much cash flies out of your hands.
   • Easy costs to cut back on include food, snacks, transportation, ATM charges, gourmet coffee and other little costs that can add up over the year.
   • Watch out for ATM fees when using an out-of-network bank ATM. When you use another bank's ATM, your own bank and the other bank generally charges you an out-of-network fee.

What to Do with Extra Cash to Help Your Financial Situation

If you find yourself with any extra money — from a tax refund, a bonus at work, a holiday gift, or money you're saving by cutting back on fees and expenses — here's how to make the most of the cash to improve your financial situation.

1. Pay down your balance with the highest interest rate. When you reduce or eliminate that outstanding balance, you won't be making principal — or interest — payments on that account, and you'll have more cash to allocate to your regular monthly expenses and your long-term goals.
2. Build an Emergency Fund. Build a cushion of three to six months of living expenses in a money market or savings account. You'll be grateful to yourself for having this fund if you incur an unexpected expense or someone in your household loses their job.
3. Start or rebuild your savings for the future. Make the most of tax-advantaged retirement savings plans, such as a 401 (k) plan through work and /or an IRA on your own. Money you contribute to these accounts either lowers your taxable income or grows tax-deferred (or tax-free) for the future, which can stretch your money much farther in several ways.