AKA Cashflow management

Why is budgeting important?

Cash-flow management is the process of understanding your spending, saving, and debt creation activities. By identifying these activities you can then begin to understand where you stand and how or what you need to do to achieve your goals.
Making any financial decison prior to getting your "budgeting" under control is premature. You need to find out where you are so you know if you are making the right decisions.
Unfortunately, most people who have a "financial plan" think that their plan is bullet proof but it's not. Without proper cash-flow management and analysis your inputs into your financial plan could be completly wrong which then renders your plan useless, no better than a paperweight.
How do you organize your cash flow and budget successfully?
You need to have a system & plan in place. Approaching cash flow management without a plan is setting yourself up for failure. As much as we'd like to give away the Eureka system for free, we cannot as it is fundamental to our net worth management program. We can give away a tracking sheet for your last 3 months of expenses which is the first step in our system and most systems out there. You could also try tracking your expenses through the MINT budget tracking app. Contact us or see our services page for more information on how we can help you!

Most common reasons budgets don’t work:

1. Unrealistic or Missing Numbers

Many of us underestimate how much we actually spend on everything from groceries and gifts to dining out. We also tend to forget to include expenses like annual credit card fees, Halloween candy, iTunes, Netflix, school field trips, school lunch programs, Costco memberships, and charitable donations.

2. Short Term Outlook

If you try to budget only for the month ahead you’ll find yourself running into big expenses you aren’t prepared to handle. You need to be planning for summer camps, vacations, Christmas shopping and back to school expenses all year long.

3. No Plan to Support the Numbers

If you’ve decided that you are spending too much at the gas pump each month, have you arranged to carpool or bus to work? If you are trying to lower your water bill is the whole family on board with shorter showers?

4. No Motivation

It’s important to have a goal that gets you excited, it’s realizing that goal that gives you a reason to stay focused on your financial plan.

5. Life Happens

Budgets often flounder because life won’t conform to a spreadsheet. The dishwasher shuts down or the garage door won’t go up. The cat gets sick, or your son outgrows his bike. Life is messy and things happen.

Contact us or see our services page for more information on how we can help you!