When it comes to budgeting and the cash flow structure, there is no single ‘one size fits all’ approach. Everyone is different when it comes to income and spending habits. Therefore, your budgeting strategy must work for you.
When it comes to budgeting and the cash flow structure, there is no single ‘one size fits all’ approach. Everyone is different when it comes to income and spending habits. Therefore, your budgeting strategy must work for you.
Important considerations when it comes to budgeting and cashflow include:
➔ Do I have a good understanding of my current expenses and saving potential?
➔ Does my current bank account structure make it easy to track my spending habits?
➔ Am I directing my surplus cash towards my goals regularly?
➔ Could I be doing more with the money I’m saving?
Stripped down to its simplest definition, budgeting is a process we take our clients through initially to understand the income and expenditure of their household income and determine their cash flow position. Without a clear understanding of your cash flow position and spending habits, it’s difficult to be sure of your financial progression and whether the strategies you’re implementing are appropriate or even feasible.
When giving cash flow guidance, our role is to provide our clients with an automated, easy-to-follow system to manage their money and track their spending. We’ll have in-depth discussions around your goals to discover your focus over the short, medium, and long term and subsequently provide recommendations on how to best utilise your surplus cash flow towards achieving these objectives.
There are many reasons why budgeting is important. Asides from managing your money, some other benefits of creating a budget planner are that it:
➔ Keeps you focused on your goals.
➔ Helps avoid spending money you don’t have.
➔ Build your wealth for retirement.
➔ Prepares you for the worst.
➔ Highlights bad spending habits.
➔ Helps you avoid or get out of debt.
Budget templates will vary from person to person. However, there are a few key denominators that should appear in your budget plan. These include:
➔ Revenue from income streams
➔ Expenses/outgoing payments
➔ Fixed expenses such as mortgage repayments, insurance etc.
➔ Variable expenses such as petrol, groceries etc.
Not sure where to start? Download our free budget planner here.
There is plenty of advice circulating the internet about budgeting and managing your money. Some of our budgeting tips are as follows:
➔ Decide why you’re budgeting and set a goal.
➔ Expect the unexpected.
➔ Choose a budgeting method that suits you.
➔ Shop around for better deals on insurance policies, subscriptions etc.
➔ Revisit and review regularly.
For advice on setting up your budget, get in touch with one of our Inovayt Wealth team members.
Send us an email
info@inovayt.com.au
