Month: July 2021

You cannot take control of your financial life if you don’t know two basic things: (1) how much money is coming in, and (2) how much money is going out. Most people operate in the dark as it relates to their finances. They often take the head-in-the-sand approach or the, cross-your-fingers and hope approach to their financial life. Yikes! Perhaps it will end up working out, but what a stressful way to handle your money. Just knowing where your money goes and how much you need to “keep the lights on” at home provides a tremendous sense of relief. It is integral to everything related to your financial life. So, building a cash flow projection should be at the foundation of your financial strategy. Rather than averaging expenses over a year, I advise that you project your annual income and expense by month. But don’t go over-board. It isn’t meaningful to create line items for coffee expenditures or even clothing for that matter. Rather, list all expenses that you need to keep your house running, food in the fridge and gas in the car. The rest is discretionary; it’s what you can spend on things like eating out, movies, clothes