Are prices going up? Maybe it’s time to look into your spending…

Do you have a cash flow plan? One that you can stick to and that will fund your retirement without any worries? If you don’t, you should start immediately! By developing cash flow plans based on your priorities, and using simple strategies to stick to the plans, you can live the life you want with the money you already have.

Action Points

A worthwhile activity to try is to determine your households TOTAL SPENDING:

1.     Determine the ANNUAL household take-home compensation

a.      Direct deposit x 26 for each earning person, for example,

2.     Subtract contributions to savings (RRSP, TFSA) made from take-home pay

3.     Add any major withdrawals from any savings account or inheritances

4.     Subtract tax return payment or add tax refund

The number you are left with is how much your household spent throughout the year!

If you and your partner are actively spending on a daily basis without communicating, your money can vanish quickly. Although typically most couples discuss larger purchases, like a couch or computer, most neglect to communicate about smaller spending proportions.

Determining this TOTAL SPEND is a wonderfully motivating action to begin a deeper investigation that will allow you to better understand your financial reality.

Details

Implementing a cash flow plan can help save hundreds of thousands of dollars in interest which can be redirected somewhere that reflects your true priorities.

A Certified Cash Flow Specialist has the skills to develop a cash flow plan based on client priorities, provide a written plan outlining the day-to-day management of cash flow and identify money that can be redirected to the plan.  If this level of detail causes you to cringe, working collaboratively with a Certified Cash Flow Specialist™ may be the answer you are looking for. 

Key Factors to Know

·       Based on current data gathered by The Money Finder, it is common for Certified Cash Flow Specialists to find an additional $2500.00/month for each client

·       Certified Cash Flow Specialist™ designation is accredited by the Institute for Advanced Financial Education

·       Cash flow plans can help you to reduce stress, focus on priorities and achieve financial goals faster

Bottom Line

A cash flow plan is more than just a budget. It is a written document based on your assets, debt, income, and spending and really shouldn’t be an option.

Please reach out if you want to know more about how this topic relates to your current situation.