Every successful business relies on a cash management system to carefully control income and expenses, and that system can easily be applied to personal finances. Personal Financial Planning Y our personal financial situation is comparable to that of a small business. Both have concerns for profit, income and expenses, and spending decisions affected by anticipated circumstances. Following some of the more successful business practices can help you get your own financial concerns in order. One of the key concepts in running a successful business is cash flow management.
Every successful business relies on a financial system to carefully control income and expenses.
A business must have a system to know its present financial status, and more important, to plan for its future financial moves. Cash flow management can easily be applied to personal finances as well, and is designed to handle your financial situation like a business in which you function as the controller. Cash flow management is a system, not a budget. It will allow you to see your financial situation from a long-term, systematic viewpoint. You will see how one move, such as periodic tax payment, can affect your disbursements for several months prior to, and following, the actual payment.