Nearly 80% of Canadians surveyed have said that managing day to day cash flow is their top financial concern yet less than 5% of financial service professionals are equipped to help in any way. Independent Financial Planners make most of their money advising semi-wealthy and wealthy individuals on long term investment strategies and tax effective income planning for retirement. And Banks? They are primarily in the business of lending money, not helping you save it.
The sad fact is that middle class individuals and average Joes just don’t have a large enough asset base to get the attention of most commission based Financial Planners, while the banks make more profit lending money than they do advising you on how to save.
For most people the fastest way to build wealth is to get control of your debt. Independent Financial Planners tend not be interested in your debt because they have access to very few products that can help you. Banks tend to be too quick to lend even more money in order to keep you beholden to them longer. Both have a built-in conflict of interest which keeps them looking at just one side of your balance sheet and prevents average people from making any significant progress. A true Financial Plan needs to take into consideration both sides of the balance sheet to really help.
1 – Get More Life From Your Money – When banks lend you money they calculate a number called your Total Debt Service Ratio, (TDSR). If your income verses the amount of money you spend just to service your debt is less than 35% most banks won’t hesitate to lend you more. What they are essentially saying is that you don’t need up to 35% of your income to live on. What if you had that extra 35% in your pocket? How much more “life” could you afford?
2 – Find Money to Fund Your Dreams – How many times have you stifled your dreams because you thought you didn’t have the cash? Getting control of your cashflow is step one in finding that needed money and starting to save for your future dreams. Maybe you want to buy that dream home, start a business or take a trip around the world. What’s stopping you is likely nothing more than a poorly managed cashflow plan.
3 – Stop “Money Leaks” on Stuff That Doesn’t Matter – When you take a close look at your cashflow you will almost always find places to trim without even noticing a change in your lifestyle. How many of those premium cable channels do you really watch? Is your car insured for more than it’s worth? And be honest, when was the last time you went to the gym? Plugging these money leaks could account for as much as a 10-15% gain on your bottom line.
4 – Finally Telling Your Money What To Do, Not Just Wondering What it’s Done – Once you’ve stopped the money leaks, reorganized your debt and started to save for the future, life can get really fun! Now you have money left over and you get to decide what to do with it.
I am a Financial Security Advisor and CashFlow Specialist. I will work with you to help you reorganize your debt and increase your savings. I work both sides of the balance sheet and raise the bottom line. Most of my clients are on track to be debt free seven years sooner while saving tens of thousands of dollars in inefficient interest payments and leaked money.
Get in touch today for a free CashFlow Analysis and Personal Financial Plan.