Today I’d like to write about Cash Flow Forecasting – Cash Flow Forecasting allows you to project your current assets and income together with your current and future expenditures and liabilities and can be a useful tool to help you understand if you are on track or not to achieve your lifetime goals.
So you take your pay, your income, your expenses, your debts and your assets and you map having to afford all of the life events you can expect which could be maybe education costs, inheritance, retirement and also the events that you want which could be maybe related to a hobby or a landmark holiday.
You map it all forward and you look to see how in terms of surplus income or savings and how you’re working towards each of those events or goals.
You may need to make an adjustment so that might be now, that might be in a few year’s time because it is a very long-term plan to help you to work towards those goals and objectives.
It’s particularly popular around retirement because individuals need to see when their pay stops and they need to draw on pensions and savings and investments to see can they maintain their lifestyle.
If you’re wondering what your current assets and income can do for you, consider Cash Flow Modelling – If you need help understanding this tool or other options feel free to get in touch and simply start a conversation!