You need to manage cash flow…
But it won’t MAKE YOU RICH
I'm Carlo Valle, and I want to talk to you about something essential for all of us: our basic needs and managing cash flow.
As humans, we need air, water, and food to survive, but when it comes to our finances, managing cash flow becomes a top priority. It’s what keeps us afloat.
Now, let’s be real. Cash flow management isn’t a magic solution for long-term financial success.
If it were, then billions of people outside Canada would be wealthy, and we’d see the opposite here.
No matter where you live, managing cash flow is crucial, and different places have different strategies.
In Canada, for instance, we have tools like credit cards, lines of credit, mortgages, and student loans. These tools help us navigate our day-to-day and month-to-month finances, allowing us to spread out our financial responsibilities over time.
Cash flow management is about using various strategies to keep a healthy balance between our...
Debt
Income
Expenses
This brings up an important question: Should we budget or track our spending?
Both methods have their place, and they can even be used together, but they serve different purposes.
Budgeting is about planning how to allocate your money before you even receive it. It’s proactive.
Tracking, on the other hand, is more about looking back at how you’ve spent your money and figuring out how to improve for the future.
Here’s why you need to think beyond cash flow management:
If you work a minimum wage job, no amount of budgeting or tracking is going to lead to a positive outcome if you simply don’t have enough left over to save, let alone plan for retirement.
Simply living within your means is NOT a long-term solution.
In personal finance discussions, we focus too much on saving and budgeting, rather than on making more money.
We don’t negotiate for better pay
We don’t compete for promotions as much as we should.
Many of us believe that our hard work will naturally lead to promotions and raises, but that’s not always the case.
Yes, asking for a raise or considering a job change can be risky. However, studies show that people who change jobs every three to five years tend to have better income outcomes in the long run. It’s a risk worth considering because it’s certainly easier than counting every single penny just to make ends meet.
A good financial advisor will take a holistic approach to your situation, considering your family life, hobbies, profession, values, and goals before giving advice.
Thanks for joining me today! If you found this information helpful, I invite you to stick around for more insights.
