The Cashflow Personal Plan is detailed to how you apply discretionary cashflow to your personal finances each month, weekly, day-to day expenses. An executed plan is more better than no plan at all. Provide yourself with the necessary tools to take action and change your mindset and stop the stinking thinking. In return it give you extra cashflow to begin and empower your life. Begin to scratch away your debt by reading the steps below.
Step 1: Get as much cash as possible each month, whether its Business income, less taxes or W4 adjustment, eliminate debt, less expenses, and apply it.
Step 2: Begin an emergency fund, you choose your range of emergency fund for yourself, for example 3,000.00 , you can put it into a money market , municipal bond fund instead of your regular checking/savings account. You can make a periodic deposit until you get to $5,000.00 , move it to your emergency fund account, and separate it from your other accounts. WAIT on step 3 until step 2 is complete.
Step 3: Invest in a retirement account such as 403B, 401k, Roth IRA, IRA, Simple SEP IRA. IRA, Annuity and on a monthly basis put away 5% of your income, WAIT on step 4 until step 3 is complete.
Step 4: Take your after living expenses and set up the Debt Elimination Plan. Start paying off your consumer debt. WAIT on step 5 until step 4 is complete.
Step 5: If your not using your retirement investments, raise your payments (step 3) WAIT on step 6 until step 5 is complete.
Step 6: Take your available monthly cashflow and build your emergency fund, will be built in three-six months living expenses should happen quickly by less, taxes, debt, expenses, business income. Wait on Step 7 until you complete step 6 is complete.
Step 7A: Buy a home, if you are a renting, and proceed to 7B. If you buy your home go to step 7B.
Step 8: Begin an investment portfolio and increase the amount over your retirement accounts, endless options are available such as Mutual funds, ETS’s, annuities, Real Estate, Bonds, Stocks, and by the time you receive extra cash you should be at this step and increased your financial literacy.
If you use step 2 or step 6 replace it before you go the next plan , recommend to pay off your mortgage before going onto step 8, it’s less risky , if you want to invest go to step 8.
Note: This Cashflow plan is only to address a cash flow system that helps you in a financial situation. If you have any additional need it is wise to seek a financial advisor.