Controlling the Cash Flow

Money comes and money all too quickly goes. But if you are not keeping track off the flow of your bank account, you are making a pretty simple financial mistake: no cash-flow control. And it is something that will end up costing you dearly.

With Christmas approaching, there is no better time to organise your family’s financial plan and to manage those seasonal expenses. By getting on top of the boring day-to-day transactions that dictate your bank balance, you will find that your monthly budget will start to run itself, leaving you more time and money to spend on life’s fun stuff.

You will:

Save Money – by not slipping into the red, you will save on bank charges and avoid having to pay high interest rates. Most utility companies also offer prompt-payment discounts.

Save Time – automatic payments and direct debits mean you will spend less time online banking and shuffling piles of paper bills each month.

Stop Worrying – by knowing down to the last cent how much you have to spend each month, it will help you match your spending to your budget, leading to fewer sleepless nights stressing about the state of your finances.

Start Saving – a financial roadmap will help you navigate a long-term savings plan.

Five Easy Stages to Managing Your Cash Flow

1. Start Your Plan

set aside a quiet half-hour, grab a pen and paper and write down what you have coming in every month and what you need to pay out.

2. Look Ahead

plan for a whole year. Include every essential utility and bill: rent/mortgage, water and electricity, rates, insurance, school fees, work-travel/car costs etc.

3. Bank Clever

set up different bank accounts: rent/mortgage, bills, savings and your everyday living expenses. After you are paid each month, move your funds into your different accounts, and leave the money there.

4. Direct Debits

ensure all your essential bills are paid using automatic payments. Big bills, such as insurance, can be spread throughout the year to ease the pain. By automatically moving your money to your different accounts at the start of the month, you will never have to worry about missing payments again.

5. Put it on the House

if you have personal loans, talk to your trusted mortgage broker about consolidating them onto your home loan. Bank mortgage rates are very low, and are likely to remain that way for a while. Not only will you streamline your monthly cash flow, you will save money too.

By clearing the decks of all your essential bills each month, you will know exactly what you have to spend on day-to-day living expenses, the small luxuries that make the daily grind less grinding, and the occasional mall-splurge on your plastic.

A fear of the financial future is really just a fear of the unknown. By defining your budget and getting to grips with your cash flow, you will be able to look forward to a brighter and more prosperous year.

What is Cash-Flow Control?

Cash-flow control refers to the practice of tracking the inflow and outflow of money in your bank account. It helps you avoid financial mistakes and enables you to manage your monthly budget effectively.

How can I start managing my cash flow?

Set aside a quiet half-hour to write down your monthly income and essential expenses. Plan for a whole year and include every essential utility and bill.

What are the benefits of managing my cash flow?

Managing your cash flow can help you save money by avoiding bank charges and high-interest rates. It also saves time as you can set up automatic payments and direct debits, and reduces stress by helping you match your spending to your budget.

How can I organize my bank accounts for better cash flow management?

Setting up different bank accounts for rent/mortgage, bills, savings, and everyday living expenses is recommended. After you get paid each month, move your funds into these different accounts.

What is the role of direct debits in cash flow management?

Direct debits ensure that all your essential bills are paid automatically. This helps you avoid missing payments and keeps your finances in order.

Can I consolidate my personal loans onto my home loan?

Yes, talking to your trusted mortgage broker about consolidating personal loans onto your home loan can streamline your monthly cash flow and potentially save you money.

Ready to take control of your finances? Contact Zippy Financial today for expert guidance and unlock a world of better financial choices.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.

Connect with Louisa on Linkedin.

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.

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Managing your Cashflow | Zippy Financial

Never have more of us been this uncertain about the state of our finances. The Coronavirus pandemic has taken the wind out of our collective sails and put us all on unsteady footing – but there are things we can do and steps we can take to get back on the front foot financially.

Got a Mortgage? You could:

Switch. To a fixed rate loan. Many banks are offering a fixed-rate interest rate as low as 2.09% for the next two to three years, which could see your repayments fall by a decent amount each month. Importantly, you’ll also be paying more principal off your loan, helping you achieve home ownership sooner.
Negotiate. With your current bank. Ask for the best possible interest rate they can offer you, and request being transferred to their retention team and threaten to go elsewhere if they can’t offer you much of a deal. If your mortgage has a 3 in front of it, you’re paying too much.
Refinance. If your current lender can’t come to the party. Look into refinancing. We can give you access to some incredible deals at the moment, and many banks and lenders are also offering cashback of between $2,000 and $4,000. These funds could come in very handy while you juggle bills over the uncertain months ahead.
Weigh Your Options. Before you go down the path of applying for financial hardship, consider all of the options. For instance, you may be able to refinance your loan over a longer term, to reduce your repayments in the short term to keep your cash flow going (you can always make extra repayments when your situation picks up). Or, you may be able to move your loan to an interest-only deal for 12 months – or perhaps redraw some equity? Speak to your mortgage broker to discuss your situation and all the possible solutions.
Request a Pause. If you’ve lost your job or income and you’re genuinely struggling to make ends meet, you can request a repayment pause with your lender for up to six months.

Are you Renting? There are Solutions For You Too! Consider:

Speaking to Your Landlord. We’re all in this together, and while your landlord likely has their own mortgage to pay right now, they may be able to offer a short-term rental reduction to help ease your financial stress. You don’t know if you don’t ask, so what’s the harm in asking the question?
Contact Your Tenancy Tribunal or Authority. If you’ve lost your job or experienced a loss of income, contact the tenancy authority in your state or advice for guidance. Some states have already introduced support measures, such as Queensland, which is aiming to provide $500 per week in rental support for 4 weeks, to tenants affected financially by COVID-19.

Whether you are renting or paying off your mortgage, there are options and support measures to help you through this very challenging period. If you want to discuss your options or even if you’d like some help trimming the fat in your budget (we have a helpful budget planner you can use!), contact our friendly team today.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation or needs before making any decisions based on this information.

Going with the Cash Flow | Interest Rates | Zippy Financial

Do you know how much you will earn this month? And more importantly what your expenses are? Two simple questions, but if you can’t come up with a rough answer off the top of your head, you’re making a rookie financial mistake. This means you’re not taking control of your cash flow – and this can end up costing you dearly.

There’s no time like the present to organise your family’s financial planning, and by getting on top of those dull day-to-day transactions that dictate your bank balance, you’ll be amazed to find that your monthly budget will start to run itself. And you will have more time and money to spend on the fun stuff in life.

So grab a pen and paper and write down what you have coming in every month, and list everything you need to pay out.

Better Budgeting will Save You:

Money – by making sure your balances does not slip into the red, you’ll reduce bank and loan penalty payments and avoid higher interest rates. You will also save on your utilities, thanks to prompt-payment discounts.
Time – once your direct debits and automatic payments are set up, you won’t need to spend time on banking pursuits every month.
Stress – the lack of clarity on your financial position generates stress that is easily avoidable. If you find yourself lying in bed unable to sleep, worrying about money, it’s time to get a grip. By knowing exactly how much you have to spend each month, you can limit your spending to match your budget.

Once you feel on top of your day-to-day finances it’s worth creating a financial roadmap that will help you better navigate a long-term savings plan and build a nest egg for the future.

Here’s a Few Budgeting Tips to Help with Your Plan

1. Try to work out a plan for the year, listing every essential utility and bill: rent/mortgage, water and electricity, rates, insurance, school fees, work-travel/car costs, etc. Plan your savings for holidays, birthdays, Christmas etc, so you spread the cost over the year.

2. Open several accounts to help keep everything separate – have one for your rent/mortgage, one for your bills, one for your savings and one for your everyday living expenses. You can transfer the relevant funds from your salary every month into your different accounts, then whatever is left in your everyday account is what you have left to spend.

3. Set up direct debits for all your essential bills. Big bills, such as insurance, can be spread throughout the year, to ease the pain – most insurance companies will offer this at no extra cost. If yours doesn’t, it’s time to move.

4. Take a hard look at any debts that could be dragging you down. If you have two or three smaller personal loans and/or credit card debts you will be wasting a small fortune on heavy interest rates. Time to cut your losses and give yourself a clean slate. Talk to your trusted mortgage broker about consolidating them into your home loan. Bank mortgage rates are at a historic low, and are likely to remain that way for the foreseeable future. Not only will this streamline your monthly cash flow, you’ll find your broker may be able to reduce your monthly payments too.

Fell good!

A fear of finances is really just a fear of the unknown. By clearing the decks of all your essential bills each month, you’ll end up with a clear picture of what you have to spend on day-to-day living expenses, such as good, and the luxuries that make the daily grind a little less grinding: Netflix, lattes and the occasional mall-splurge on your plastic.

You’ll be amazed how good this will make you feel.