Capturing Cashflow - The Key to Budgeting

16 Feb 2018 - Ian Birch - 2 minutes

Capturing Cashflow - The Key to Budgeting

Proper budgeting is more than simply cutting back on expenses; it’s about understanding your cash flow so the relationship between expenditure and income can be effectively managed. 

Only by recording and analysing your expenses over a set period of time can you begin to understand your cash flow and create a budget which is tailored to your personal situation.

There are a number of tips and tricks we recommend you follow to make the most of setting up your budget:

Be Realistic

You know what's worse than goals which are too easy to achieve? Goals that are nearing impossible. Goals which are far out of your reach will just lead to extreme demotivation. Just like trying to lose weight, a little bit at a time is far better than trying to do it all at once. 

Failure only leads to disillusionment while small successes add to your motivation and momentum.

Stay Motivated

There are a few tricks for keeping motivation levels high and one of the best is to formalise our goals.

Besides setting achievable and manageable goals, a very wealthy person once told me ‘the difference between a millionaire and a billionaire is the first looks at their goals list every week, the second looks at it every day’. 

Achieve Your Budgeting Goals

The gist of the story is to monitor your goal progress consistently, stay focused and make adjustments as often as required. There's no harm in changing your mind after the fact so long as you've learned from the situation.

Reward Success

If you are serious and stay motivated, you will succeed. Rewarding success is a big part of maintaining motivation. So celebrate the small wins with a reward that makes it feel worthwhile (but not a reward which goes against the goal).

My own budgeting journey has changed the way I deal with money by making me think about my finances in a holistic way. I know where I am currently, I know where I want to get to eventually, and I can see my progress anytime.  Knowledge really is power.

Ian Birch

Ian Birch

Digital Media Manager

I love a good story and I love sharing good stories with others. The Evermore Money Management story is as good as it comes and spreading the word about the people behind it, the developments taking place within it and the runaway success it is becoming, is my dream job.