Do you know your cash flow cycle?
Understanding your cash flow cycle is one of the key steps to reducing debt. If you don't fully understand your inflows and outflows, your peaks and your troughs, then your cashflow will control you rather than you controlling your cashflow. And if this is the case you will find it very hard to get ahead.
Often people gauge their ability to spend by what is in their bank account. At certain times in their cashflow cycle they will find themselves with a healthy bank balance and therefore use these available funds to make discretionary purchases. What they often don't factor in is that a considerable amount of these funds may already be committed for upcoming bills - rates, electricity, school fees.
When the bills arrive the money is already spent which usually means their credit card or other lines of credit are used to fund the shortfall. Putting them further into debt.
One of the tools we use with clients under our CashGrow programme is our Cashflow Forecaster. This tool helps clients better understand their cashflow and how expenditure decisions can impact on their ability to reduce debt.
Contact us for an informal chat if you would like to discuss safe and affordable strategies that can put you back in control by reducing personal debt.
The information provided is general in nature only and is not a substitute for independent professional advice. We disclaim liability to all persons or organizations in relation to any action(s) taken on the basis of this information, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of this information.