Positive Cash Flow is Key to Building Your Wealth
If you don’t know how much money you can afford to spend this week, you’re already in trouble. It means a lack of control over your cash flow. This will impact every aspect of your future wealth.
Unless you are disciplined about spending, there’s no way to implement a savings or debt reduction plan. You’re stuck in a revolving door of money in, money out, and nothing lasting to show for your effort.
While occasional planned treats add pleasure to life, think back to that last impulse purchase. The one you knew would blow the budget. Recall what it felt like to overspend. How long did the satisfaction last before uneasiness set in? Remember this for the next time you are tempted to overindulge.
About that budget. Do you have a good one? Is it detailed enough to help you achieve your wealth dreams? If you didn’t promptly and firmly answer yes, then sit down with your Financial Advisor. Learn about this valuable component of lifelong financial literacy.
Develop a detailed picture of where you are now. Then you can develop a projection of how you want your life to look in 5 years, 10 years, and onward into retirement. Instead of more retail therapy, spend an evening charting your course.
Learn to leverage the power of your paycheque by tracking your fixed and variable costs. It will show you where firm rein on your spending will free up more money to invest in your future.
If you shop coolly, carefully planning a big purchase, you enhance your cash flow. Use that credit card wisely, paying off your bill every month, or you face losing a big chunk of income to interest charges.
As you reach for your wallet, be certain the money should be spent. If not, then stop a moment. Face your planned fun and consider its impact on your financial well-being. Maybe there’s a lower cost treat to enjoy, and the satisfaction of knowing your plans are on track.
Wealthy people typically live well below their means. They understand that ample cash flow brings the power to realize their dreams.
Spend less, to invest more. Your Financial Advisor can help you to achieve both.