Money Goals – surplus cash flow
Now that you’re feeling empowered to understand your monthly ‘Surplus Cash Flow’ and how much you want to be saving/reducing debt each month -– after your next major purchase, renovation or investment?
The difference between the ’Existing Surplus Cash Flow’ and your ‘Money Goal –Surplus Cash Flow’ will determine how much you’re willing to place towards your next investment. For instance, when purchasing a property, your ‘Surplus Cash Flow’ Money Goal will define your price range (if you have the cash flow to purchase a property), and flow through to ultimately your Property Strategy. This is precisely why understanding your cash flow, reviewing your Money Management System and determining your Mortgage Strategy comes first in the Property Planning process, and forms the foundation for your Property Strategy.
Special note-– We would suggest reading the above as many times as required to ensure you have this very clear in your mind. This is a fundamental piece to the puzzle in creating order, removing chaos, and feeling confident about the expenditure towards your next property or investment.
You might find that after setting your spending levels for your ‘Grow’, ‘Life’ and ‘Fun’ buckets your surplus monthly cash flow may be too low for your liking. This could result in another glass of wine or sip of tea to determine where you can further trim back any expenses. Starting with your ‘Surplus Cash Flow’ or ’Savings Goals’ in mind helps to provide the motivation you’ll need to sharpen the pencil and further refine your expenditure goals -– if you’ve been unable to achieve your planned savings, debt reduction, property and investment goals after reviewing your expenditure for the first time.
If you’re in a relationship, the order and clarity that comes from being on the same page is crucial in setting the tone of what’s important to both of you.
Each of you receive only a finite amount of money during your lifetime – and if you don’t make the conscious effort to consider what is important, critical resources can run out or become limited. You need to be realistic and consider what’s the most important priority for you right now and what’s important for you in the future to maintain your current lifestyle. We suggest you start with an amount that you would like to be saving each month and putting it towards debt reduction. The leftover cash is what you can utilise towards future investments.
Ultimately, your goal is to determine how much surplus cash flow you want going into your ‘Grow’ account and/or paying down your home loan now and/or after your next major property or investment purchase!
Contact us today to book in a free confidential property planning, strategic mortgage broking, money management or property select meeting.
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