Budgeting & Cash Flow

It is just not possible to build your wealth if you are spending more than you earn.

Anyone who wants to achieve financial stability should have a budget and cash flow plan in place. It is the very first step in responsible personal finance management.

A budget, when done well and put together with the help of a financial adviser, creates positive cash flow and can be used to build substantial wealth for your future.

Budgeting is not just for people trying to get out of debt. It is also for people who are taking a more active interest in investing, saving for specific occasions (weddings, vacations, having kids), planning for emergencies, thinking about retirement, and for those of us who generally want to take more control over our finances.

Most people will have a very general idea of how much money they think they are spending across various aspects of their life but are usually surprised when they start to break things down into specific categories and see exactly what is costing what. 

Some useful categories for tracking spend include fixed expenses (mortgage, rent), variable expenses (groceries, transport), and discretionary expenses (entertainment, subscriptions). A complete break-down of expenditure in each of these areas gives people the power to clearly see what is going on, group similar activities, prioritise what matters, identify hidden expenses, eliminate waste, adjust to external changes, factor in emergency expenses, accurately predict savings over time, understand when specific financial targets will be attained, and remain motivated to stay on track. 

McLauchlan Wealth will help you review key areas of your regular and not-so-regular expenses and discuss why each is important for you. By looking at your spending differently, you will quickly see your spending behaviours change for the better.

We cut through the confusion and work with you to create a manageable budget tailored to your situation. Then, we make sure that your cash flow is allocated correctly to help you meet your financial goals.

Speak to McLauchlan Wealth today for more information about budgeting and cash flow.

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