Cash flow is the foundation on which financial planning is based. Without it, you will not have an accurate picture of your finances. And when you do have it, you need to make sure that you make it sustainable. How? Through education, strategy, and mindset.
WHAT IS CASH FLOW MANAGEMENT?
Money is a terrible master but an excellent servant.
Cashflow Management is understanding where your money comes from, where it goes, how much is left for you to use at your discretion, and what your options are if you want to make that leftover money grow. For most, cash flow management equates to having a budget.
However, having a budget is only one component of household cash flow management. If you have a budget, what can you do next? Or even before you have a budget, what should you do first? In short, personal cash flow management looks at your financial pattern from the moment you have a source of income up to the time when you use a part of that income to create wealth. And as you create wealth, you increase your chance of making work optional.
After all, the point of our financial endeavours is to look forward to the days when we no longer have to work for money. Instead, that we make money work for us.
what are the benefits of cash flow management?
KNOWING WHERE YOUR MONEY IS COMING FROM
A personal cash flow management strategy provides a detailed projection on where your money is coming from. This is especially so if you have multiple streams of income. By knowing where your money is coming from, you can estimate your potential for financial growth.
KNOWING WHERE YOUR MONEY IS GOING
With an aid of a budget, personal cashflow management helps you get a clear picture of where you are spending your money. Here, the question ‘Where did my money go?’ will no longer be a mystery because you have a list to look at and to think about.
KNOWING HOW MUCH MONEY IS LEFT
With a cash flow management strategy in place, you can never overspend. As a consequence, you will know exactly how much cash is in your hands. After all, cash flow management indirectly teaches you how to be thrifty and how to make informed decisions.
KNOWING YOUR SPENDING PATTERN
Because you know where your money is going, you now have time to think things over, prioritising expenses. By looking at your expenses, you can now answer key questions that reveal your spending habits. Are you spending more than you earn? Do know what your needs and wants are?
Because you know how your money is moving, you can think things over before you commit to spending. It’s now a matter of thinking about the consequences rather than mulling about your spending in retrospect. In short, you may become a cautious spender.
PEACE OF MIND
Knowing that your money is properly utilised offers you a sense of security, clarity. In these uncertain times, you have an assurance that you will always be able to make ends meet. Thus, you are empowered to make decisions if you are to pursue higher financial goals.
current income trends
From the Cost of Living Survey 2021 by news.com.au that asked top financial burdens for Australians.
petrol or public transport
rent or mortgage
sending their kids to school
eating out, entertainment, and looking good
HOW DO I GET STARTED?
Getting started on personal cash flow management is simple. All you need to do is to contact us and then we can get the ball rolling for you. You can also take our Financial Goals Assessment Tool to explore the different aspects of your financial life.
Our specialist service includes, but are not limited to:
- Creating a financial formula that reflects your current spending plan.
- Identifying the options where you can create and utilise your surplus cash flow.
- Coming up with strategies to protect you in case of loss of income.
- Helping you allocate funds for emergency purposes.
- Identifying opportunities so that you can save for significant future expenditures.
- Tackling debt and starting or growing your savings.