Never run out of money
Cash flow planning is the practice of planning and forecasting sources and uses of cash. Its ultimate objective is to provide a framework that enables the most effective and efficient use of pension and investment income and the maximisation of free cash flow.
It is the process of assessing your current and forecasted wealth, along with inflows (income) and outflows (expenditure), to enable a picture to be created of your finances both now and in the future. Whereas budgets are based on your active plans for the future, a cash flow forecast is an estimate of future projected income and expenditures.
What does cashflow planning do?
Cash flow planning allows you to reflect on your current financial position, relative to your preferred position and your personal aspirations. This is then projected forward, year by year, using certain assumptions for growth, income/withdrawals, inflation, and interest rates.
Watch the video to find out how cash flow planning can help you on your financial journey.