Personal Cash Flow Planner

In a survey carried out in 2011 in the United Kingdom by POET (Personal Budgets Outcomes Evaluation Tool), it is revealed that personal budget have a positive impact on people’s lives. Meaning they are supported with self-respect, and in control of their finances.

To prevent yourself from falling the trap of credit card debt or excessive spending, picking up the skill in managing your personal budget or personal cash flow will not only avoid from building up debt, but it also gives you an overview of your personal financial position – Where are you today? How you want to live your life? Save money to live you dream; save money for investment.

Many people are intimidated by the idea of personal cash flow because it seems complicated. Actually it is just a simple mathematics equation. I have designed a Personal Cash Flow Planner template. All you have to do is to key-in the figures.

At the beginning, your financial position may not look good. When you get the result about where your money had spent, you will start to scrutinize and cut down on unnecessary spending. This will be your first step towards financial independence. Keep the good job and continue with this practice.

You will soon find there is some surplus at the end of the month. You could start to ‘Pay Yourself First’ and allocate a portion of your income into the Savings account (a general guideline of 10% of your total income) and ‘forget about it’ or don’t touch the money. Once you are consistently doing that, you will see that your account ending balance accumulating. In my books, I elaborate in detail how to build your Personal Income Statement that also lead you to read a company financial statement when you learn about investment in companies.

As the season of giving is around the corner, do your shopping wisely. Spend on meaningful gift instead of unnecessary gift. You do not wish that your gift end up on an auction site. I wish you a very Merry Christmas & Happy New Year 2013!

About Tiffany Tang
Tiffany was a former Financial Controller for INTI Education Group, Malaysia (part of US Laureate International Universities, US). She worked as a Regional Accountant and had been in a regional exposure in few countries such as Singapore, Shanghai, Korea, India, and Japan. She worked for a few large multinational companies in the industry of retail, bulk logistics, computer hardware and civil engineering firm. She has more than 15 years of working experience. She holds a Bachelor (Hons) in Applied Accounting, UK. She is also a member of IFA, UK.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: