Why is Cashflow so Important?
As you would be aware, we are getting a bit deeper into this financial year! We encourage you to check your finances and explore whether you are on track to your budget.
We are sure you have all heard the of the importance of cashflow for a business. So here are three reasons why that is COMPLETELY TRUE!
- You can’t pay for general living expenses with equity or assets
While assets are awesome, such as cars, shares and investment properties, it is highly unlikely your local grocery store will accept these as payment any time in the near future. However, in saying that, these assets can generate greater cashflow which you can use to pay for your groceries. However, it is important to remember that investing is usually a long game sport – in other words don’t expect returns in a day.
- Makes you appreciate how much you spend
If you are simply tapping your credit card, sometimes it is hard to grasp how much money you are actually spending. If you actually see every dollar you spend leave your account, this would make you actually realise how much you are spending.
- It can give you peace of mind
Financially speaking at least. Imagine if you had sufficient cashflow coming in monthly, without much hassle. That is sure to give you peace of mind!