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The power of lifetime cash flow modelling; an essential component of your financial plan
We naturally look to the future when it comes to our finances. However, we all know that the future is unpredictable and can never be guaranteed. It is therefore an obvious but really important comment to say we must ensure the best financial decisions are made when planning for the future. Cash flow modelling software is a powerful – and I would say essential - tool to help us to do this. Here’s why…
Everyone’s approach to money varies, but cash flow planning can help everyone see things differently.
A lifetime cash flow plan (or ‘model’) provides a hugely-effective visual representation of how your financial future may look and what is required to achieve your monetary goals. It allows you to envisage upcoming expenses, major aspirations, and dream purchases; all whilst aligning with your current financial plans and supported by a robust Report.
It helps you to easily see the impact of potential financial decisions, make informed choices, feel more in control of your finances, and – crucially - help give you peace of mind that you will be more financially resilient; both whilst working towards to your goals and afterwards if you have achieved them.
Working together to create the initial cash flow plan is just the first step. The real value of this tool comes from regularly reviewing the Plan. We know that there are so many factors in life that mean our plans change, so keeping it up-to-date is essential.
Using cash flow modelling for your financial plans is like jumping into a time-travel machine. Imagine stepping into a glass bubble and bouncing forward 5, 10, 15, 20….years. You step out, look at your personal financial picture at that time and ask yourself what it looks like. Are you happy with it? Then you get back into the glass bubble, bounce back to today and make any changes, aiming to make your Plan more robust and that you are happy with it.
For you as a client, lifetime cash flow planning is an invaluable tool to help transform aspirations into achievable realities.
For me, as your expert Financial Planner, cash flow planning is an essential tool to provide you with holistic financial advice. My role is to not only to help you not run out of money but also to help make life for living, not just for saving! An empty glass is a problem but an overflowing glass is not necessarily a success story. It could mean you may miss out on experiences and life’s important moments when you don’t have to.
There is much more to be shared about the many benefits of cash flow planning, and I will cover these in detail in the not-too-distant future.
For now, if you would like to learn more about cash flow modelling and how it will benefit you, please don’t hesitate to get in touch to schedule a no-obligation meeting.
