By Rebecca van Noppen
How do you manage money? There is an endless stream of information, apps, and tools to help us take care of the resources in our hands.
Cash flow management is something unique to everyone. What works for one person doesn’t necessarily work for another. There are some things however, that we all can do to keep cash flow management simple, clear, and consistent.
Communicate, Communicate, Communicate
When it comes to your finances, there is a great need for humble, true, and persistent communication. Whether you are single or have a partner, the key to managing money is to talk about money decisions and behaviours, as well as share your heart about financial fears and dreams. Your heart and head need to work together to make sure everyone involved is aware of what income is coming in, what is being spent, what bills are needing to be paid, and what expenses are arising. Communication also involves listening to the heart behind the words, and the stories behind the numbers. Talking about money takes courage, persistence, and humility.
Where, When, What—The Financial Date
Weekly financial dates with your spouse or even with yourself are essential. Having time in your calendar to manage money helps create the space to discuss the numbers and any money-related issues.
To keep the date night on track with concrete and profitable takeaways, consider these three questions:
- Where do I stand financially today, compared to the plan?
- What money do I need to spend between now and my next scheduled income?
- Is there anything further in the future that I need to prepare or save for?
These questions can guide you in regular non-confrontational conversations about where your money ends up. This is part of the process of giving every dollar a name or destination. You want to tell your money where to go, without it telling you first.
Who Said Budget?
Many hear the word budget and immediately associate it with a sense of guilt and shame. For some it has become a checklist which they cannot measure up to. In truth, tools to track your spending are much more helpful than a budget. A budget tells you where your money went, but a spending plan looks forward, helping you decide where your money needs to be allocated over a cycle of four-to-eight weeks. Find a tool that helps you track your spending and helps you create a plan, even if it is as simple as a pen and paper.
Unbiased Third Party Accountability
Communication, financial dates, and a spending plan tool are all pieces of the financial health puzzle. Sometimes, that puzzle isn’t complete without accountability. That is where a trusted financial coach, advisor, or friend can help you stay on track. A coach or an accountability partner will provide perspective you cannot get on your own. They will ask great questions to help you think and act simply, clearly, and consistently. In the end, this accountability helps you stay on track as you set goals and pursue your dreams. Search for the people in your life who manage their finances well and ask them to help guide you on the path to financial freedom!