Learn how you can invest and build wealth more efficiently in the current economy by knowing where your money goes on a monthly basis…
It is important that you have a workable understanding of how your monthly cash flow will affect your future outcomes.
In this discussion TheWealthIncreaser.com will look at ways that you can effectively manage your cash flow in the current economy, as you age–and during your retirement years.
By knowing this information at this time (right now) you can more effectively plan your and your family’s future so that you can take the vacations that you desire, do more on a monthly basis with your kids and grand-kids, donate time and money to your favorite charitable organization(s), enjoy entertainment in a way that makes your life more meaningful and pursue other goals that are dear to you and your family.
There is nothing that you can do to change certain things in your life that may have happened to you in the past.
However, if you make the decision at this time to look at your finances and your future in a more intelligent, consistent and proactive manner you CAN change the outcome of your investments and live the type of retirement that you desire.
You Must Know Your Current Cash Flow
It is imperative that you at this time take a serious look at your monthly inflows and outflows of income and expenses from all sources.
Does your income exceed your expenses on a monthly basis or is there a shortfall?
This is something that you must know so that you can build wealth and invest in your future in a way that will ensure that you will attain realistic results.
You must at this time define your monthly income, gather your monthly expenses and determine if you have discretionary income that you can use to save more efficiently or pursue other goals that you may have.
With your knowledge and understanding of just this information you will put yourself well ahead of those in the general population and you will be showing a serious intent to improve your living condition for yourself and your family.
You Must Know Your Cash Flow at the Various Stages in Your Life
Now that you have a handle on your current financial condition as it relates to your monthly cash flow, you can now plan for your future.
Will you make a serious commitment to know where your monthly income and expenses are at this time–or will you procrastinate?
You can now pay off or pay down your debt, make the decision to get more income, increase your retirement contributions, and make other adjustments based on your lifestyle and where you want to go in your future.
You Must Know Your Cash Flow During Your Retirement Years
After you have invested in your future in a way that would take you toward your retirement number you must know your income from all sources along with your monthly expenses during your retirement years.
Did you plan appropriately and in a manner that allows your monthly income from all sources to pay your monthly expenses for the next 20 to 30 years (your remaining life expectancy) or is it likely there will be a shortfall that would force you to continue working?
Will you have a substantial excess that will allow you to leave a legacy for your heirs?
Those and other probing type questions are what you must ask yourself and answer appropriately during this time so that you won’t have to look back in regret during your retirement time.
It is imperative that you have an overview of your life stages at this time so that you can invest in a wise manner at the various stages in your life.
It is also important that you measure the success that you achieve at the various stages in your life on your ability to pay your monthly expenses during your retirement years in a manner that allows you to do just that—and have money left over for the enjoyment of life that you desire during your retirement years.
Will you have the monthly income from all sources (social security, 401k, pension income, investments and other sources) that will allow you to live at a comfortable level after the payment of all of your mandatory monthly expenses?
If you don’t see it happening after sincerely analyzing your finances at this time—NOW is the time to alter your planning to make it happen!
In addition to aiming for your “retirement number” be sure to also aim for your “ability to pay your monthly bills” and have cash left over for the enjoyment of life on a monthly basis.
Your “retirement number” is a lofty goal, however it may not bring you the monthly income that you need to pay your expenses and live at the level that you desire during your retirement years or your remaining years on earth based on your life expectancy.
Be sure to look at your finances in a comprehensive manner at this time so that you will minimize or reduce any future surprise as it relates to your inflow and outflow of cash on a monthly basis.
If your monthly income does not look like it will cover your monthly expenses based on your analysis at this time, it is your responsibility to come up with more income or pay off or pay down your debt so that you can get your debt to a level that allows you to get the numbers on a monthly basis—as far as your income and expenses—to turn in your favor.
Will you need 60%, 75% or 85% of your current income to live at the level that you desire?
It is up to you at this time to determine the path that you will take as far as making your retirement years a more pleasurable experience as you complete your journey on planet earth.
Always remember that joy and confusion cannot live in the same house! Make the decision now to see your retirement years with clarity by investing the time NOW to achieve and live the way that you desire LATER (during your retirement years).
Now is the time that you go after what you desire with real zest.
Now is the time that you give it your best.
You must at this time know–your cash flow!
You must at this time decide to pursue results that will show!
It is up to you to aim high or low!
Now is the time that you reap what you sow by planting (planning) in advance so “you” will know!
All the best to your cash flow and retirement success as you pursue your future with more zest…
Go to Calcutlator.net to calculate your current monthly cash flow number…
Go to T Rowe Price for free 30 second retirement projection calculator…
Go to Kiplinger.com for your retirement number calculator…
Go to 100 money saving tips that can help improve your cash flow…
Go to Net Worth & Wealth Building page on this site to learn about your Net Worth and how it relates to your Cash Flow…
Return from Cash Flow & Investing to Who is the creator of TheWealthIncreaser.com