If, like many others, your life and money feel a bit like a juggling act – paying bills here and there… and “Uh oh, forgot about the council rates, guess that one’s going on the credit card”. 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 cash flow 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 cash flow 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 cash flow 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 cash flow and budget can help you:
There are a few telling signs that can point to whether your cash flow 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 cash flow 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.
Be the boss of your cash, get in touch.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
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