budgeting & cash flow

Download Budgeting & Cash Flow

Post on 13-Dec-2014

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  • 1. Personal Budgeting & Cash Flow Analysis

2. Budgeting & Cash Flow Cash flow When you need toknow where money isgoing Analysis Cash flow Budgeting When you need to Budgetcontrol how much andwhere money is going Planning &Implementation 3. Where to begin: Cash Flow Determine actual expenditures 4. Cash Flow Determine actualexpenditures Begin with tracking yourexpenditures Receipts, Checks, Bills 5. Cash Flow Determine actualexpenditures Begin with tracking yourexpenditures Receipts, Checks, Bills Method of Record keeping required 6. Cash Flow Determine actualexpenditures Begin with tracking yourexpenditures Receipts, Checks, Bills Method of Record keeping required K.I.S.S. Keep. It. Simple. Stupid. 7. Cash Flow Determine actual expenditures Use a tool 8. Cash Flow 9. Cash Flow Determine actualexpenditures Each expenditure shouldcorrespond to a category Categorize,subcategorize, sub-subcategorize Be thorough Be obsessive Differentiation allows for better budgeting Limit misc category! 10. Cash Flowhttps://wwws.mint.com/demoUser.event 11. Cash Flow Dont Stop! Keep going Track everything Including cash Make adjustments as you go Computerized tools make this easy 12. Budget Budget is a Spending Plan. Series of comparisons,preferences, judging, weighing ofimportance Subjective decisions, influencedby emotion Requires honest and frankdifferentiation between needand want Ultimately about delayedgratification 13. Next Step: Creating a Budget Have a Budgetinggoal or purpose Cut spending Save for specificitem/event Find comfort zonefor retirement 14. Budget Begin with actualexpenditures rough outline Project fixedexpenditures Taxes, utilities, debt payments, insurance, etc. Additional variableexpenditures Everything you can think of not already noted 15. Budget Project Income Overtime? Bonuses? Other sourcesof income 16. Budget Budgeting Savings1. Emergency fund 3 - 6x monthly income2. Retirement3. Project fund Specific goal4. Play fund Reward 17. Budget Finding places to cut Consider everything few things are trulyuncuttable Obvious places Dining Clothing Entertainment Luxuries Look for Red Flags Spikes in spending Impulse buying Begin with modestgoals Eg. Increments of 1% of income 18. Budget Monitor Spending Trends Use a tool 19. BudgetReviewRevise 20. Thank YouSchedule your personal consultation now! Visit http://amway.bemanaged.comContact us at (616) 871-0751 or (888) 738-8780