Be the boss of your cash
If balancing your life and finances feels like juggling far too many balls – paying bills here and there, forever worrying about your council rates, and racking up credit card payments – you may think that just having some extra cash could solve a lot of your problems.
You’re not alone! A survey by Financial Mindfulness in 2017 suggested nearly one in three Australians are stressed about their financial situation. However, often changing how you spend the money you have now can help you start saving that extra cash.
It all comes down to your cashflow.
Your cashflow is the amount of money going in and out of your bank account each week. It is not a measure of your wealth, but of whether you have enough cash to meet your expenses, preferably with some left over. If your cashflow isn’t in check, you will likely find it difficult to pay your bills on time, or end up relying on credit.
The first step to controlling your cashflow is knowing exactly where your money comes from and goes to. Understanding and managing your money now will help set you up for the future.
A well-managed cashflow and budget helps you to:
- Feel financially secure and in control of your money.
- Be confident in meeting your expenses and paying off debts.
- Start saving towards your goals.
- Stop living pay to pay, and start working for your future.
All in all, this will lead to you feeling financially confident.
So, time to health check your cashflow!
There are a few telling signs that can point to whether or not you are in control of your cashflow.
| Do you: | Yes | No |
| Know where your money comes and goes each week? | ||
| Feel secure about meeting your expenses, and paying off your debts? | ||
| Have a solid, workable budget? | ||
| Have a growing savings account? | ||
| Have bank accounts set up so they’re easy to manage? |
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 building your wealth and saving towards your goals.
Answering no to any of these questions means you should get your money working harder and smarter for you. Some good first steps include writing out your goals, creating a budget, and creating a good system to manage your money – see our blog on your ticket to financial freedom for more.
We’re here to help! At 7Wealth we build your finances for the long term, and often getting your cash in order is the first stage of growing your wealth. We can help you take a fresh look at how you’re managing your money and help find new ways for you to save on costs and time.
Getting a clear picture of what’s happening with your money will help you stop juggling bills, and start saving for your future.
7Wealth Pty Ltd ABN 44 609 210 246, is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706
This blog 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. If you decide to purchase or vary a financial product, your financial adviser, and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.
May 9, 2018
