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Cash Flow Analysis

BetterWealth For Women Cash Flow Analysis

Why Is Cash Flow Analysis Important?

At BetterWealth for Women, we believe that every client should have a clear understanding of where her money goes every month, what’s working, and what might need some attention.  BetterWealth for Women helps you work through balances, debts, and investments to see if your financial life is on the right track – so you can get back in control.  Simply put, we want to help ensure that your income and spending habits match up with your financial goals.  

If you’re not sure where your money is going every month, you might want to take a closer look at your cash flow.  A cash flow statement is the first step toward a clearer picture of your finances, and a valuable tool to begin the budgeting process. It is a simple look at your income versus expenditures.  While we do not require that every client adheres to a strict budgeting process, we do recommend that we at least take a look at cash flow to give you a better idea of how much money you have coming in versus how much is flowing out and to where.  

Cash inflows comprise your paycheck, pension or social security income, income from a side business, rental income, or just about any other source of income that flows into your account on a regular basis.  

Outflows then are any expenses that flow out of your account.  These can be fixed, recurring expenses, such as a mortgage, rent, or insurances, or one-time miscellaneous expenses like a car repair, or perhaps replacing an appliance or other home repair.

Cash flow statements give a snapshot of your finances which is helpful when allocating current or future dollars. For instance, if a financial planning goal is to pay off your mortgage sooner, it’s helpful to look at cash flow and see where you might find those extra dollars to put toward your mortgage. If you are anticipating a reduction in your income due to retirement, then a cash flow analysis is helpful to see how you can re-allocate spending in order to maintain your lifestyle.  

Cash flow analysis is a powerful first step in achieving your financial goals. 

Let’s have a conversation about your cash flow to get you on the right track.

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