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.

Click here to learn more about our planning services.

Fee-only Retirement Income & Investment Planners,

Willis J Langford BA, MA, CFP

Nancy R Langford CRS

587-755-0159

 


Share This Post:

Related Posts

Latest Testimonial

Partnering up with Willis & Nancy for our retirement goals has been the best decision we have ever made.

Previous agents or companies only seemed interested in obtaining funds from us with no further support or contact.

Willis & Nancy have worked with us at least twice a year to make sure we are set up for success. They have been able to provide us with a visual picture of where we currently stand financially in order to determine if we are ready to retire or need a few more years. It has alleviated the stress we were feeling about retiring and having no idea of what that would look like.

For the first time, we feel confident that when we make that final decision we will be able to continue on and be financially and mentally prepared.

Deb & Garry

Debbie & Garry
Long-term Clients

Contact Us

Questions? Comments? Call us today at 587-755-0159 or fill out the form below:

Have Questions? Call Us Today At

Call Us

Join Our Newsletter



Subscribe