Cash flow planning
What is cash flow planning about?
Cash flow planning is an intrinsic part of our financial planning process by which you ensure that you have access to a regular stream of cash to meet your regular monthly expenditure and have put cash and liquid assets aside for other individual items you require.
To be honest, for those in the millionaire asset group, without good cash flow planning it is almost impossible to set up a good financial plan or work properly with a professional financial planner or independent financial adviser.
What are the various parts of this cash flow planning process?
Basically it can be broken down into the following:
- Budget planner – ensuring your regular income exceeds your regular outgoings
- Emergency fund – Cash held in savings accounts which can be realised quickly
- Savings plans – Money held in deposit accounts or liquid assets for expected larger items of expenditure such as holidays, new cars, housing improvements etc.
- A cash flow control system for managing the various accounts
How are the various parts pulled together to ensure good cash flow planning?
There are many ways to skin a cat, some a lot more effective that others. Basically it is better to have a number of separate bank accounts for different purposes and arrange standing orders between those accounts to meet your cash flow needs.
What happens once I set up the various bank accounts I need?
The next important stage is setting up an emergency fund and using a budget planner.
Any questions on cash flow planning?
Please call us on 01582 839280 or Email us.
