Cash Flow Management

by Doris Dobkins

True financial planning involves learning how to handle your cash flow. It involves setting some personal goals and objectives and then making sure your money management methods will help you achieve them.

The lack of knowledge and discipline is what keeps people from properly managing their cash flow. Taking some time to learn and then implement simple money management tips is important.

I'm going to share with you right now one of the simplest and easiest ways to demonstrate control over your cash flow. This is a guaranteed way to make you feel in charge of your finances.

Each month, starting this week, have 10% of your money automatically withdrawn from your paycheck or checking account before you see it or have a chance to spend it. When it is automatically deducted, it becomes very easy for you to adjust your spending and forget about it. If you don't believe me, read on.

Think about the last raise you received. How quickly did you adjust to the increased income? If you're like most people, you were dependent on that extra income within days of receiving the raise. This is the same concept but in reverse.

Many people will say they can't do this and don't have enough money. All I ask is that you try it. Without these monies showing up in the balance, you might just surprise yourself at how easily and quickly you adjust to this reversal of funds.

This is called "Paying Yourself First" and it works! If you want to get control of your cash flow and truly manage your money like the wealthy, then take this first step.

Doris Dobkins is a money saving expert, author and speaker and has helped thousands of people find ways to save money and get out of debt.

Take the Next Step:

If your employer offers direct deposit, ask them to deposit 90% to your checking account and 10% to a savings account.
Sock that 10% somewhere where it will earn interest for you. Consider one of the online banks such as Ally Bank or Ing Direct. They frequently offer higher interest rates than the "brick and mortar" banks.

Share your thoughts about this article with the editor. Do you have an idea that wasn't included in the article? Tell us about it: Click Here

Do you need more information on this topic? Click here to ask a Dollar Stretcher Stretchpert!

Do you have a time or money saving idea that wasn't included in this article? Please send it to tips@stretcher.com. We get the best ideas from our readers!

If you liked this article, sign up for our free eNewsletter Surviving Tough Times. Just enter your email address in the box below and click Subscribe.

Follow The Dollar Stretcher on Twitter.