Are you Aware of how you spend your money? Does managing your money cause you Stress? Do you enjoy Thinking about money? Are you Saving as much as you want to? This is just an example of some things to think about as you embark on your journey, to take control of your Spending, and Make Smarter, More Confident Decisions around Your Money. It also turns out that the more you know about your finances, the less often you think about them.
Cash Management is about:
- Understanding What it Costs to Be You
- Understanding and Controlling how You Want to spend your money
- An Awareness of how You actually spend your money
Understanding money matters and managing your cash flow are essential parts of any sound financial management strategy. Money is something we think about every day. But while we may think about it, and even worry about it, we sometimes fail to take the time to manage our cash effectively.
Why is it so important to manage your cash effectively?
One reason is that it can free up assets for you to achieve your goals and objectives, some of which might include saving and investing. Having time on your side and investing early gives your money the best opportunity to grow over time.
Is Investment Management and Financial Planning the same thing?
When most people think about Financial Planning, they think about Investment Management, however, Investment Management is a component of financial planning, just like retirement planning, tax planning, education planning, and yes, managing your cash.
If you don’t have a good cash management process it’s very difficult and inefficient to know how much money you have to save and invest to accomplish your goals. And how can you have a good cash management process if you don’t know where you’re spending your money, or why you’re spending it?
How can you make changes in your financial life?
The only way people can make effective and lasting change in their financial life is to first gain a clear understanding of where their finances currently stand. Once you understand where you spend money and identify what's important to you (i.e. your goals and objectives), you'll be in a better position to make decisions about how you want to spend your money.
Most people don’t take the time to understand how much money they spend and what they spend it on. Some people are afraid to see where their money goes. Going through an organized and structured process of understanding how your money is currently being spent, and then incorporating your goals into a Spending Plan can make a positive difference in your financial situation and may also alleviate some stress.
At MLS Financial Planning, we believe, that all of the components of financial planning are important, but not everything has the same level of impact on everyone at the same stage of their financial life. It’s about putting the most effort in the area that has the biggest impact, so you get the best outcome. In our opinion, for most people, between 50% and 75% of their ability to become financially independent is driven by having a great cash management program with coaching.
Schedule a Complimentary Meeting or Sign up for a live, virtual presentation, to learn about our Cash Management Planning & Coaching Service.