4 Cash Flow Basics You Should Be Reviewing Constantly

Your car needs to be maintained. So does your home. Your Cash Flow Plan is no different and it requires ongoing maintenance. Here are 4 cash flow basics to review constantly:

1.) Is my debt number decreasing each month? When we log into our bank account we can see our total debt number. We like watching it shrink each month. Shrink is what we want it to do. If it isn't shrinking we need to find out why quickly, so that we can identify and fix the problem.

2.) Am I over-spending due to my increased confidence in my financial situation? Our expertise is in "finding you more money". Once that money is found, and in many cases, it will be a significant amount of money, the danger is to fall back into a trap of overspending. 

3.) Am I using debt strategically? When you pay high-interest charges on credit cards and car loans someone else is using a "debt strategy" on you. They borrow the money at a low-interest rate and then lend it to you at an exorbitant rate. You can beat the bank at their own game by using their money at low rates to build your wealth. See our blog on Using the Banks-Money to Build Your Wealth.

4.) Can I handle electronic spending? It's a known fact that plastic makes it easier to overspend. That is one of the reasons our cash flow planning starts with a cash-only spending plan for the first 60 days. Having a pocketful of cash to make purchases for the week helps us see how fast it is going, how much is left and makes you ask yourself the need for that purchase before you make it.

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Your Trusted Advisors,

Willis and Nancy Langford

587-755-0159

 


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