You may be thinking that having some extra cash would solve a lot of your problems.
Well, often changing how you spend the money you have now, can help you start to save that extra cash.
Your cashflow is the amount of money that's coming in and going out of your bank account at any point in time. It's not a measure of your wealth, but whether there's enough cash available to meet your expenses, with some left over. If your cashflow isn't in check, you might find it difficult to pay your bills on time, or end up relying on credit.
The first step to a more positive cashflow is to become clear on the incomings and outgoings of your money. Understanding and managing your money well now, will help set you up for the future.
A well-managed cashflow and budget can help you:
There are a few telling signs that can point to whether your cashflow is working for you. Answer yes or no to the questions below to see how healthy your day to day money is.
Answering yes to all these questions means your cashflow is probably in a healthy position. And now would be a good time to start thinking about how you can save towards your goals and building wealth in other ways.
Answering no to any of these questions is ok too, because it's a great opportunity to get your money working smarter and harder for you. Some things you can do include - setting some goals, writing a budget and making sure you have a good system in place to manage your money. There are plenty of apps and online services available that can help with this.
Our job is to help you build wealth for the long term, and often getting your cash in order is the first step to growing your wealth. We can help you take a fresh look at the way you're managing your money, and help you find new ways to save on costs and time.
Getting a clear picture of what's happening with your money will also help you feel more confident about your finances overall. So you can stop juggling bills, and start saving for future goals.
Don't know where to start?
For more help and to take a fresh look at the way your managing your money, speak to your financial adviser at SFP. Or if you don't have an adviser yet, contact us on 02 9328 0876.
General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.