Cash Flow & Budget Advice & Planning

While cash flow and budgeting go hand in hand, they are not one and the same.

Cash flow focuses on how you send your money to reach your long and short term goals. Gold Coast Cash flow planners show you precisely what you can spend, taking into account your debt and assets, retirement, and the impact spending may have you being able to reach your goals.

Budgeting, on the other hand, focuses on the balance of your income minus expenses. The purpose of a budget is to ensure you don’t live beyond your means. Gold Coast Budget advisors look at how you are spending your money; where you are over-spending, and prioritise good debt from bad debt, to reduce spending and introduce saving.

A budget is a simple equation of income minus expenditure, to provide a positive balance; money in must be more than money out. It’s when expenditure exceeds income that we face financial problems, problems that often, only financial planners can solve.

The first step in budgeting is to look at your income. Look at how much money comes in each month. Include your spouse’s income to get a total.

Next, calculate your expenses. Creating a definitive list of all expenses; don’t leave anything out. Items to include are mortgage repayments, rent, credit card and personal loan repayments, phone, internet, utilities (water, electricity), streaming TV services, dining out, entertainment, grocery costs, clothing allowance, car repairs, registrations, petrol, insurances, public transport, gifts and presents, bank fees, prescriptions and medicines, memberships, travel expenses, sports fees, child care etc.

Subtract your expenses from your income, and you have yourself a basic budget. To help get you started, we have developed a kickstart budget spreadsheet, which you can download below.

Download Our Budget Template

There are many advantages of budgeting. First and foremost, you can track your expenses to ensure you don’t live beyond your means. You see a clear picture of your total financial situation, whether good or bad and can then make informed spending decisions to work in your favour.

There are only disadvantages of budgeting to those not dedicated to reaching financial goals. Sure, you may not be able to go shopping as often, go to the pub as much, or buy coffee every day, but it’s a small price to pay for financial security in your later years.

Budgeting, however, takes time, and if you seek professional advice, money as well—however, the benefits far outway the initial time and advisor fees.