3 Looking at your cashflow on a purely 1 Cashflow month-by-month basis isn’t enough When I talk about cashflow planning as a financial strategy, I’m talking about financial forecasting and helping you work towards living a fulfilled and meaningful life. Not only looking at the cost of your lifestyle today but trying to anticipate the cost of your lifestyle tomorrow. Looking at your cashflow on a purely month-by-month basis isn’t enough. Your income will change t hroughout your life, as will your expenses, and you need to plan for that. Cashflow is about financial forecasting and looking to the future, rather than basing your budget on your past. Cashflow planning also reveals what options are available to you in the future. Cashflow planning looks at your unique, overall circumstances, desired lifestyle and aspirations. Your timeline is an essential element of cashflow planning and financial forecasting because it’s helping you to prepare for your life’s transitions. This involves thinking about the different stages of your financial life – the savings years, spending years and later life years. It’s about considering milestones, such as your children leaving home to go to university, or life’s transitions, such as selling your business or leaving paid employment. 6 Jonathan M. Gibson CFP™, Chartered Fellow (Financial Planning) www.wellsgibson.uk
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