What’s the difference between a Cash Flow Plan and a Budget?
What is the difference between a Cash Flow Plan and a budget?
Budgeting is about deducting total expenses from income and trying to work with what’s left over. Just the word budgeting, tends to evoke thoughts of restriction, punishment and pain. Most people aren’t excited about the idea of a budget. And who wants their financial advisor waving a finger condescendingly to suggest what you can or can’t spend your money on? Budgeting for day-to-day expenses—which is where we find the greatest risk of over-spending— is incompatible with electronic spending or basic human behavior. Budgeting is time consuming, ineffective, and frustrating for you, and for the financial professionals you may work with.
Cash flow planning is NOT budgeting. It’s a method of managing spending—as well as short and long term goals—by giving you ways to control the effects of your spending that are a natural fit with how you already use money and with what’s important to you! Cash Flow planning takes into account your proximity to retirement, debt and assets, and other goals to show you exactly what you can spend—so you can have the things and experiences that are most important to you and still reach your longer term goals.
Cash Flow Planning is NOT found in any of the traditional financial planning courses or designations, it’s literally missing. This is why we decided that we had to add this service to our practice. With Cash Flow Planning you won’t be ordered to give up drinking lattes, or be told how much you’re allowed to spend on groceries—there are no jars and no guilt trips. Find out if a Cash Flow Plan might be right for you.
Give us a call today, or visit our website, to schedule a FREE phone consult, and find out how to get more life out of the money you already have.
Don G Turnbull