Huh? Yep, it turns out, simply depositing a paycheck and paying bills has nothing to do with cash flow. That is just making and spending money. Anyone can do that. Managing your cash flow though is another matter – an important one.
A certified finance planner can coach you in effective cash flow management, helping you to discover where you are spending your money, and how to better control the flow of cash through your fingers. This is known as “conscious spending.”
Conscious spending is the key to better cash management
Cash flow is easily the most important factor in a family’s financial plan. Cash flow is what builds wealth – much more than returns on investment. Cash flow is where the rubber meets the road; where you take the actions that move you toward or away from your dreams and financial goals. But many people struggle to understand their cash flow – where does all that money go every month? Are you clear about your priorities, and can you see that your cash flow is directed toward those priorities? If not, you need a cash flow management plan.
First Step Cash Management System™ is an easy and effective tool that simplifies cash flow planning, eliminates the need to categorize all expenses, and tracks your cash flow in real time – what you have spent, as well as your future saving and spending goals.
Here are the components of cash flow management, as outlined by forbes.com:
- Components of Income – your income sources
- Fixed Expenses – the things you must pay for every month
- Discretionary Expenses – the things you choose to pay for every month
- Taxes – the things you are forced to pay for every month
- Savings – the thing you tend to forget to pay for every month
Household budget planning is the best way for you to take control of your cash flow. Budgeting can help you map your priorities, matching them with your intended spending. However, most people need another tool to help with in-the-moment spending decisions. First Step Cash Management System™ is a tool that is focused in the present rather than the past; an effective tool that can be used to support your daily spending decisions.
Tamarind Financial Planning is here for you, with individual financial planning strategies, personal investment management techniques, and household budget planning tools designed to help you meet and exceed your cash flow goals.
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