Cashflow is KING!

Yes it's true. Cashflow is KING. There is no secret to financial planning. It is only about cashflow. The key to successful financial planning is making your cashflow positive -  always. It is okay to get into debts but it has to be good debts. Debts that will create a space in your balance sheet, a portion for you to create an inflow (income). 

Does it sound too technical? Let me make it simple. 

Cashflow according to investopedia.com is Free cash flow is defined as a company's operating cash flow minus capital expenditures. This is the money that can be used to pay dividends, buy back stock, pay off debt and expand the business

source: http://www.investopedia.com/terms/c/cashflow.asp

Alright, simpler hehe cashflow is simply inflow (income) minus outflow (expenses). If managed very well, there will be more opportunities for the household to spend for fixed and variable expenses such as paying off debts, adding investments to your portfolio and many others. 

If you are at the peak of your career, very well ! make sure to plan for your future goals so you would be able to match your current investments to achieve your future goals. However, kung  ikaw naman ay puro utang ngayon, don't worry, there's always a way! Ano ba ang dapat gawin? 

1. Worry not kasi laging may pag asa basta lakasan mo ang loob mo na matatapos din lahat yan. Everything is temporary

2.. Manage your expenses. Write down your daily expenses and make a weekly summary para alam mo kung saan ba napupunta ang bulk ng expenses mo

3. Make a balance sheet. Hindi naman kailangan sobrang complicated ng worksheet. Maraming downloadable. Or simply list or your Assets (liquid assets - income and other income, non-liquid - real estate etc.) and your Liabilities. 

4. Identify from your balance sheet kung ano ang pwede mo na ma-dispose or ibenta. (If there are liabilities na kailanga mo na talaga bayaran)

5. Identify from your expense tracker kung ano ang unnecessary expense. Whatever is the amount, pwede mo ito allocate sa ibang bagay na mas dapat pagka gastusan. 

6. Make a budget. Discipline your self to work an a budget. Although, siempre minsan may unnecessary expense kaya nagugulo ang budget, pero kaya nga dapat may emergency fund para in cases your car broke down etc. doon mo kukunin. 

7. Have faith in God. Mag tithe ka. Sabi ka sa Malachi 3:10 "Bring all the tithes into the storehouse, that there may be meat in my house, and try me in this, said the Lord: if I open not unto you the flood-gates of heaven, and pour you out a blessing even to abundance" 

Give so you will receive. I can attest to this, God provides one way and another. But give and build his storehouse. At totoo ang sabi nia, "TEST ME IN THIS" basta magtiwala ka lang. 

Hence, after all what I said, always try to achieve a positive cashflow. Kasi tulad mo rin, at one point in my life hindi ko ito narealize. I should have monitored it long time ago. Just like you, I had huge debts, and yes I am still paying some of it. Discipline is important, lalo na if you really want to have a comfortable lifestyle. Hindi naman pwedeng puro work work work ka nalang diba? sabi nga ni Robert Kiosaki, na kaya nga tayo nagsisikap para we can enjoy the fruits of our labor at lalong hindi naman dapat tipirin ang sarili dahil ang purpose nga natin kung bakit tayo nag wo-work ay para mag improve ang lifestyle natin at ng family natin. 

So again, always remember that CASHFLOW is KING!

Happy saving and investing,
Jendee S. De Guzman
Insurance Agent
*Registered Financial Planner 
(currently undergoing certification / thesis writing)