With a title like “Secrets to Cash Flow Success,” you might be picturing a magic answer that will drastically improve your life instantly. Sorry to disappoint, but like most things in life, cash flow success takes hard work and consistency to yield results. Thankfully, there are steps you can take to get started today. Whether you’re planning for your personal finances or your business, there are 3 key concepts that can improve your cash flow.
Understanding
There’s a common misconception that financial success is about having a large pile of money. In reality, financial success (or even more importantly, financial well-being) is associated with having a strong cash flow that allows a person to do what they want to do, when they want to do it.
This can come in many different forms: maybe you do have a large investment portfolio that produces recurring income, or maybe you’ve diversified your income by owning rental properties while continuing to work part time doing something you love.
No matter what it is, financial success is really just financial flexibility, or the ability to not be stuck to any one single plan or course of action. Understanding this concept is the first step in building a plan to maximize strong future cash flows.
Awareness
Next is awareness. You must have a strong idea of what your current incoming and outgoing cash flows are before you can hope to improve them. That’s not to say that every person or business must operate on a highly scrutinized budget of spending and saving. But in order to build for the future, you must have a good handle on what’s happening today, and tomorrow, and the next day, etc.
Being aware of your paycheck and business revenues, and understanding that they may fluctuate for both expected and unexpected reasons allows you to adapt your planning efforts to stay on the proper path for long-term success.
For instance, if you are consistently spending more than you earn and thus producing a cash flow deficit, there will be no extra funds to contribute toward your financial goals. This is a larger issue that needs to be addressed before effort can be put toward creating true financial success.
Consistency
Nothing worth having will be accomplished in a single day. True for all goals, it’s particularly true for cash flow success. Sure, you could win the lottery or become a viral sensation, but even those windfalls will require proper cash flow management.
Consistency is key in this regard, especially since we know there are inevitable disruptions that could derail your plans. If you can consistently make wise financial decisions, you can minimize the volatility that these disruptions can cause, giving you a better chance of weathering the overall storm.
When something becomes a habit, like consistently saving or investing your surplus funds, it also becomes easier to take the emotion out of financial decisions. It becomes less about how you feel and more about whether or not your decision will align with your long-term financial goals.
Partner With a Professional
The best part of these key words is that a great financial professional can help you create and monitor the daily details of understanding, awareness, and consistency. You don’t have to go it alone. At Heimensen Wealth Advisors, we are here to help you on your journey toward financial success through personalized financial planning. To schedule an introductory meeting, call 712-472-3867 or email corey@heimensenwealth.com. Be sure to check out Corey’s book, Stop Doing Dumb Things With Your Money, and tune into his new Podcast, WIN—What’s Important Now.
About Corey
Corey Heimensen is owner and Accredited Investment Fiduciary® at Heimensen Wealth Advisors, a full-service financial planning and investment management firm serving pre-retirees, independent contractors, small business owners, and young families. With 30 years of experience, Corey believes that future success in life means that you have to conquer today, and he equips his clients to do just that through education, guidance, and customized strategies. Corey’s goal is to do his part to make his clients’ lives better, taking some of the financial burden off their shoulders so they can focus on what matters most to them.
Corey is the author of Stop Doing Dumb Things With Your Money, and host of his new podcast, WIN—What’s Important Now, where he discusses planning strategies you can utilize now to help you build a financial path for tomorrow. Corey earned a degree in finance from Buena Vista University and resides in Rock Rapids, Iowa, with his wife and three children. When he’s not building his firm and working with clients, you can find Corey boating, reading, and attending sporting events. He loves anything related to basketball! To learn more about Corey, connect with him on LinkedIn and subscribe to his podcast.
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Material discussed is meant for general/informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice. Past performance is no guarantee of future results. Diversification does not ensure against loss. The opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions.