Cash Flow Analysis
The next phase of the financial planning process involves reviewing our client’s cash flow. Analyzing a client’s cash flow is his or her reality check. The difference between what comes in and what goes out is a gauge of one’s financial health. After compiling information on income, expenses, taxes and savings we will construct a Cash Flow Analysis that will clearly show where resources are coming in and how they are being spent. From that we can determine monthly living expenses, projected retirement living expenses, the amount needed to fund an emergency fund, and the amount of discretionary income that is available for life’s financial goals. If after analyzing our client’s cash flow, there appears to be an ongoing deficit, we will provide recommendations on how to construct a budget and consolidate and reduce debt.