Cash Flow and Money Principles
Spring is finally making its rounds here in Montana! I am happy to be outside tending to the garden and beginning to see fruits of labor sprouting from the ground… of course I will be paying for this over the next few days with sore muscles because I did too much too fast! But, in the end I know it will be worth it!
As I was reflecting on doing too much too fast, I find the same can happen with money.
When you go without positive cash flow for a period of time, what happens when the cash begins to flow smoothly again can be a time of over extending. A time to catch up or over invest, thinking you will never go back to a time of tight cash flow.
Of course this perpetuates itself with seasons of struggle and chaos, and seasons of smooth sailing and fun.
What if there was a way to smooth out financial seasons?
There is! I refer to them as money principles.
These are the principles by which we make our financial decisions, regardless of the amount of money that is coming in at any point in time. After all it’s your money and you are in charge!
So… what if your financial management could be more systematic and not so emotional, so that you were always set up to win?
Clarity is the key to having this in place.
Below are 10 statements to answer so you can get a better handle on your cash flow and make a greater impact:
I have a written financial plan for the next 12 months
My financial statements are current and ready for review
I am comfortable reading financial statements
I know where every penny of my family/ business spending goes
I am able to contribute time and money to the interests I am passionate about (Charity, Spiritual, Community Groups)
My Children’s Education needs are planned for
We take all the vacations we desire
My debt will be paid in full by the date I desire
My Retirement Plans are secure and sufficient by the age I desire
I am happy with the legacy I will leave
Once you have your answers, I recommend taking some time to reflect on what it will take to answer yes to all of these questions. If you do not have a solid plan in place, you will not reach the financial freedom you deeply desire.