Budgeting & Cash Flow – Your budget is your “planned” revenue and your “actual” spending, and allows you to allocate funds for specific purposes that you often know in advance. Consider preparing a budget quarterly or yearly.
A forecast may occur on a more frequent basis (often monthly). The figures used in the forecast predict past and current trends in your financial statements. A forecast can give you a more realistic measure of where your budget or business is heading and can help you to avoid problems before they occur.
Cashflow forecasting is one of the most important forecasting tools for an individual or business and can also help you keep on top of your bills. It is very useful when seeking finance, as it shows lenders you have the capacity to pay them back.
What are my expenses? Will I have enough money? Am I working towards my Financial Goals? When you are asking these three questions, a budget and cashflow has the answer. A budget will tell you how to direct your money to where it is needed the most.
Do you want to create a budget and a cashflow projection but have no idea where to start?
Generation Private Wealth will work with you to create a manageable budget tailored to your unique situation. We help you identify areas where you could cut back to assist with your cashflow, as a result getting where you want to go faster.
We help you create a budget you’ll be able to stick to and ensure that your cashflow is constantly monitored.
Just as cashflow is one of the most critical elements of any financial goal, the cashflow projection is also one of the most critical elements.
A good cashflow forecast might be the most important single piece of any financial plan. All the strategies, tactics and ongoing monitoring mean nothing if there isn’t enough money to pay the bills.