Managing Your Cash Flow

The most important financial skill you can have is the ability to effectively manage your cash flow over time.  Most of the things you want to accomplish in life, from educating your children to achieving financial freedom for yourself, is going to require you to build a quantifiable level of wealth. 

Building wealth is a function of saving, investing, and time.  Savings are the seeds of wealth.  Being able to save means being able to live on less than you earn.  It doesn't matter how much you earn if you cannot save any of it.  I frequently, hear people say, "We are making more money than ever and we still can't seem to save anything. What are we doing wrong?" 

In most cases, the answer lies in getting control of your cash flow. This process begins by developing a comprehensive spending plan, in other words, a strategic budget.

A Strategic Budget is a carefully crafted spending plan that will enable you to maximize the effectiveness of your financial resources so that, over time, you can build sustainable wealth and achieve long-term financial security for yourself, your family, and future generations.

Process Steps: Creating a Comprehensive Spending Plan

Preparation: You complete a budget worksheet in preparation for the first meeting. The process goal is to get you thinking, on a preliminary basis, about how you spend money.  

Session 1: a) Intensive budget review session designed to help you understand how you actually spend money. Where does it all go? How much does it cost you to live during an average month in your life? b) Review and Analysis of the completed budget worksheet in order to ascertain a clear picture of your financial situation. We will discuss the findings and implications. The results may surprise you.

Session 2: Help you set clear financial goals and order priorities for spending.  Help you understand the need and process for allocating financial resources to your highest priority items including: regular savings for periodic expenses, emergency fund, debt reduction, retirement, buying a home, and other goals.

Session 3: Finished Product: Create a comprehensive spending plan designed to accomplish your well-thought-out, prioritized goals and objectives. Discuss the tactical steps required to implement your spending plan.

If we can make your life work on paper, including your living expenses, prioritized goals, and savings objectives, then we can make it work in real life.  If your life does not work on paper, it will not work in real life, no matter how hard you try.  The professional advice and guidance we provide can make the difference in your life. Enjoy life and build wealth, you can do both but you need a plan.

Click here to learn more about managing your cash flow to financial success.