Have you ever heard the term ‘Cash flow is king’? Usually it is said in reference to small (or large) business. It means that it doesn’t matter how much money comes through the door, if more goes out then your business is in trouble.
You and I are the same. In our personal financial journey, cash flow is king.
In previous blogs I have written about how to set goals. And I would encourage all of you to go back and read these, goals are very important if you want to find success financially.
However, goals mean little without cash flow management.
Cash flow is the day to day work that you need to do to reach your goal. So how do you get started?
1: Know yourself
That sounds very deep, but it is really simple. In order to control your cash, you need to know where it is going now. Take out your phone and open a note, or grab a piece of paper and start to track your spending. What is coming in, and what is going out (and where is it going)
Create a system for your cash flow. This may include a direct debit to savings or extra loan repayments. At BGN Financial we love the 50/20/30 system. This is a simple way to manage your cash that is not overly prescriptive. You can read more about it HERE or get in touch for a chat.
3: Track the data.
Companies like, your bank, Facebook and Twitter are collecting and using your data to further their influence in your life. Why not use data to your own advantage?
There are heaps of budget tracking software/ apps available these days. Even your bank may offer one. We love MyProsperity, and that is what we use with clients to track and say ahead of their cash. You can learn more about a MyProsperity portal HERE.
By keeping a track of your spending you will learn how you spend money, you can gain an insight into your own subconscious relationship with money and you will have the tools to make small changes that will lead to big outcomes.
The great things about using tech to do this is that you don’t need to keep a track of every little thing yourself. Your bank can feed into the software and classify your spending, giving you great reports that will encourage you to succeed.
Controlling your cash flow isn’t all that difficult, but it is very important. Make 2020 the year that you take back control of your cash flow.
Financial Advisor - BGN Financial Management
BGN Financial Management are Australia's premier financial advice, coaching and education specialists.
Through financial management and lifestyle design we help our clients succeed and achieve their greatest goals and dreams.
Our founder, Ben Graham-Nellor (bengrahamnellor.com), is passionate about helping 'everyday' people get ahead through careful planning, coaching and education.
We meet with our clients at our offices in Melbourne's eastern suburbs or in our secure online meeting room.
We look forward to helping you achieve your goals and dreams.