Money Attitude For Cash Flow Management

Source : Wo Bao
Written by : De Souza Warren Alexander

A. income - savings = expenses
B. income - expenses = savings

So which one is your attitude?
Option A would indicate that you are in control of your expenses and are disciplined in your savings. You are able to plan for a better, prolonged and sustainable lifestyle that is free of money woes.

Option B would indicated you are more skewed towards satisfying your immediate desires and wants at the expense of creating a savngs plan for a better tomorrow.

Tips to become a better money and cash flow manager:

Tip 1: Create a monthly financial statement for yourself by writing down each amount you have spent and the items you have spent on. This will enable you to review your pattern of spending and alert you of any impulse spending, as well as whether you have chosen the right option in your money decision making-process.

Tip 2: Make a list of what you plan to buy before you go shopping. Take some time to scout around for the best deals before making that payment. It is your hard earned money after all.

Tip 3: Adopt Option A, i.e. the right attitude towards cash flow management and stick with it.

The savings for rainy days should be between 3 to 12 times of your monthly income.