Cash flow planning or budgeting is not something that should be taken lightly. If you have never followed a budget you will be absolutely amazed what can be accomplished once you start to keep track of your spending.
I don’t think we realize how much we spend on the “little things.” The morning coffees, the magazines, the new lipsticks, change for the kids to get a snack after their sport. Cash flow planning requires us to be aware of all of this spending. When I set someone up on a cash flow plan I do not ask them to keep track of all of these little things but what I do is give them an amount for their active cash flow and they can spend it anyway they see fit. Now that being said, we use “cash” and once the cash is gone you then need to wait until pay day.
This may seem a bit harsh but this system works wonders for paying down debt and for being in control of your flow. I think that is what we all need to strive for. What are your thoughts?