For all of you left-brained number cruncher or you right-brained creative visionaries, indulgences like new cars, vacations, fabulous handbags, a fierce pair of stilettos and dining out overload can tempt your financial sensibilities. For some of us it may be too late to ever become what's deemed as "financially savvy" but it's never to late to become cash flow conscience. Whether you are drowning in a sea of debt or treading water (paycheck to paycheck) or swimming with the sharks, there is always an opportunity to enhance your overall financial mindset. It can be a tricky task to strike up the right balance between spending vs. saving and good debt vs. bad debt. One can lead to financial leverage and the other can lead to financial turmoil. The choice is yours.
So is it really possible to save for a better tomorrow while enjoying some of the fruits of our labor - YES. But first ladies, we must take back the control. Control of the words that flow from our lips, control of the discipline we chose to exercise and control of our priorities we set in place. Single income earners as well as dual income earners both have the opportunity to stand on a solid financial ground by getting and keeping a grip on our current cash flow. By the end of each day, we are following the yellow brick road to "financial freedom." Here are just a few strategies to cash flow consciousness:
1. CASH ON THE BARREL --- Put the brakes on your spending by paying cash for your daily expenses. Train yourself to go to the ATM or bank only once a week to withdraw your weekly spending allowance. When it's gone, it's gone.
2. NO SPENDING TODAY --- establish one or two or if your super determined three "Free Days" where you will not spend a dime. Not one red cent! This means you'll have to pass on the "Cinnamon Dulce Skim Latte" at your trendy java joint. Brown bag it for lunch on these days. No tabloid impulses or lottery purchases either.
3. KEEP A CASHFLOW/SPENDING JOURNAL --- for about 4 weeks, keep track of what you are spending daily. In order to address what's causing you to overspend, you need to take a daily snapshot of ALL of your expenditures. Like our food intake or impulse buying, this could get ugly. It is imperative that you carry this journal/notebook with you at all time during this exercise. Write down the date, what you purchased and how much (no matter the cost-no amount is too little). Consider jotting down, why you needed the item.
4. SET A GOAL (real dates) TO PAY OFF DEBTS --- Like with all goal setting, having a fixed date gives us something to work toward. It allows us to see the light at the end of the tunnel. I have finally come to terms with worrying and stressing about my debts and bills everyday will only keep me in debt. I have set up a realistic debt reduction plan, set a sensible budget and reward myself for even the smallest victories. Now I'm back to focusing on prosperity. Remember sometimes we have to encourage ourselves just like David in I Samuel 30:6. It is important that as you reach your goal, reward yourself with a low to no cost treat.
5. TAKE BACK THE CONTROL --- you control your emotions don't let your emotions control you. Overspending is almost always driven by the "Big E" - emotions. A sense of entitlement to a particular lifestyle; aka Saks Fifth Avenue taste on a Kmart budget. Keeping up with you peers; aka keeping up with the Jones' (who in the hell are the Jones' anyway.) Need to feel valued and loved; aka a "women's worth" is not measured by what she has but what she is.
6. SET A BUDGET --- Categorize your income and expenses into housing, food, transportation, savings and other bills. Compare your monthly income to your monthly expenses. Subtract your total expenses from your total income to determine your net cash flow.
Remember yesterday is a canceled check; tomorrow is a promissory note; today is the only cash you have. Spend it wisely.
Posted By: Tamela Saulsberry
Sunday, August 10th 2008 at 3:14AM
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