Wanting to Save…it starts with Managing your Cash Flow
Often people say they want to save or invest but they get caught up in the mechanics of where to deposit the money instead of first focusing on how they are managing their cash flow. Earning income and paying bills is not exactly “cash flow management”… it is survival.
Real management involves understanding where the money comes from, where it goes, and what choices are appropriate in your circumstances. For example, saving money in a deposit account earning 1%, when you have a credit line balance on which you are paying 8% interest, is not the best way for for a long-term solution.
IN TALKING TO ME, I WILL HELP YOU TO:
- Set ambitious, but realistic goals. The first step to building better cash flow is to visualize where you want to be financially. Where do you dream of being next year? Would you like to own a house or, perhaps, take a well-deserved vacation?
- Pay yourself first. It is important to determine what you should set aside to help you cover day-to-day expenses, monthly expenses, annual expenses, and unexpected emergencies. It is possible to do all of these things and still save money for the things you want in the long-term.
- Review the flow of your money. What are the fixed expenses and discretionary expenses? Do you have control over your money or is it controlling you?
- Consider your costs versus income. By understanding what you are spending versus what you are earning, you will gain significant insight into your potential to save. Your “maybe-one-days” may not be far off as you think with the right strategy.
- Start budgeting – and understanding how a budget works. Knowing your past spending trends can help predict what you can do realistically to achieve your goals.
- Implement your plan.
Your finances do not have to feel like you are throwing a cup of water on a bonfire. With my help, you can understand how to take control of your money and calm the anxiety of simply not knowing where to start. Words like “savings”, “investments”, and “retirement”, do not have to inspire fear. They are all part of the financial world and all have their importance to managing your cash flow. Your cash flow and budget are all the foundation upon which your financial wellness is based.