Cash Flow Planning
Reduce Debt Fast!
Debt can be a costly liability, learn how to make it into a valuable asset! Cash flow planning is about considering your existing debt and how it can be manipulated to provide cost savings, a financial safety net and an additional income source. How you view debt may be the difference between hardship and financial success, but educating yourself on key financial concepts is key to eliminating risk and harnessing your debts potential.
What are your Cash flow habits?
Your habits contribute greatly to how we design your finance.
If we know how you like to control things, our advice can cater for this when transitioning between what was and what will be. This aides our advice to deliver a more beneficial outcome through the strategy being excepted long term.
Please think about how you have setup your finances i.e. do you have separate accounts for different expenditure or savings i.e. holidays, spending, saving, kids schooling etc.
Secondly, how is your debt is positioned i.e. credit cards, personal loans, car loans, home loan, investment loans.
The process starts with cash flow!
Know what you earn, how you earn it, what you spend and how you spend it!
This is crucial when designing any lasting and beneficial financial plan!
Cash flow management considers your earnings capacity, your spending habits, your debts and how best to optimize these factors to reach your financial goals and aspirations. Because without knowing these aspects, how can you make sure you reach your financial peak and can weather life’s challenges.
Cash Flow Creates Lifestyle!
Life is worth living, so consider how you can best design your financial position to make the most out of every dollar!
Cash flow planning structures your finance to easily identify when you are able reach certain targets.
Know what you want & achieve!
So what are the big ticket items that you would like to do?
Now │ 3years │ 5years │ 10 years?
Cash flow Planning, is it a budget?
Essentially, cash flow planning needs to accurately depict what you earn and spend, but the need to ensure 100% adhesion to a budget is not necessary.
The strategy essentially provides you with required parameters on what is needed to reach your goals and aspirations. It then actively structures your finance to create additional savings and efficiencies, which can either be utilized towards lifestyle or saving.
The only time Cash Flow Planning would actively consider encompassing a budget, is if there was a clear need. But with everything we do, the reasoning, benefits, cost and negative aspects will always be clearly explained before entering into any new piece of advice.
