CASH FLOW
CASH FLOW
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Cash flow helps you to take stock of your sources of income, calculate how much you are saving and figure out what you spend your hard-earned money on.
Cash flow also helps you become more aware of your own financial behavior.
With cash flow, discover...
With cash flow, discover...
how much money you can afford to save
your current standard of living
spending more than you can afford
if you save enough for yourself/family and your future
which expenses prevent you from saving as much as you could
Cash flow analysis is an extremely important step in the financial planning process.
Cash flow analysis is an extremely important step in the financial planning process.
That's why, now, it's essential to look back over the last 6 months in which you probably had not just monthly cash inflows, but mostly daily, periodic and even occasional cash outflows.
Once you've calculated your cash inflows and outflows, you can then analyze the average values you've averaged over this time period.
You can categorize personal cash flow outflows from 3 perspectives:
savings
large expenses
current expenses
CASH FLOW STATEMENT
CASH FLOW STATEMENT
From today's analysis, what are your financial results?
From today's analysis, what are your financial results?
How do you consider your financial behavior?
How do you consider your financial behavior?
Careful and constant monitoring of your cash flow will help you to better plan your personal net worth growth and cope with the unexpected events that may arise in your life.
Careful and constant monitoring of your cash flow will help you to better plan your personal net worth growth and cope with the unexpected events that may arise in your life.
Initial Cash Flow + cash inflows - cash outflows = Final Cash Flow
Initial Cash Flow + cash inflows - cash outflows = Final Cash Flow
Financial education means satisfying your "needs" and those of your family, but also fulfilling your own "wants". Don't give up on your dreams!
You really don't need to eliminate your desires to become financially independent! On the contrary, by including them, you'll be more motivated to save more, with a purpose.
Now's your chance to analyze which categories of savings and spending you could rebalance against your earned income so that you can create the standard of living you want.
75% of Romanians confuse financial education with financially moderate behavior, i.e. the habit of borrowing money only if they are sure they can pay it back.
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