This Is the Secret to Organizing Your Finances

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

The first step when organizing your finances is to determine what it is you would like to accomplish. After your goals are set, the most important thing you need to take a good look at is your cash flow, so that you can figure out the necessary steps to fund your goals. I suggest doing this in three steps:

Add up how much you are spending.

Figure out how much you earn and pay in taxes.

Subtract your expenses and taxes from your income to calculate your discretionary income.

This is a cash management analysis. It does two things: it brings awareness to your spending habits, your taxes, and your income, and it allows you to plan accordingly. By plan accordingly, I mean that when you are faced with a decision to buy a new or used car, to buy a bigger home, or even just to add a monthly cable bill to your expenses, you’ll know exactly how that is going to impact your cash flow. So let’s explore how to figure out your cash flow in a little more detail. 

Spending 

The best way to know where you are spending your money is to import all your credit card and banking transactions from the last four months into an online budgeting software program. I prefer MoneyBrilliant. Once you’ve opened an account and have imported your transactions, you can look at your spending trends. As you get more data, you’ll know how much goes towards food, auto and housing expenses. This also tells you where you can lower your expenses if needed.

Do you need more detail on this subject? Head on over to the full article https://www.investopedia.com/advisor-network/articles/092216/cash-flow-secret-organizing-your-finances/ for more ideas and perspective. Otherwise feel free to reach out to me on 0432 132 123 or email [email protected]

Thanks,

Arthur