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We are becoming battle fatigued by ordinary life and frustrated that we are not getting where we really want to get. Psychologically we all want more control of our lives, and for most that seems to mean the default solution of gaining more control through more money.

“Arhhh… if only I had more money I’d really be able to do what I really want in life” I hear almost everyone say out loud to themselves. Is it just me, or is everyone is chasing the lure of fast money and big profits.

But it can be a vicious cycle.  More money can mean more work which can mean less time and therefore less control again.  It’s frustrating – but what’s a better solution?

I constantly see cues of sheep for lottery tickets and hear of stories of gambling problems all stimulated by the quick fix mentality of “how can I make heaps of money quickly?”. And even if you are the one of the freakishly lucky one-in-a-gazillion people who over a lifetime invested the equivalent of a house into scratchies - are you happy anyway?

Don’t you ever wonder if the rich are really happy ? I used to. Most nights, in fact! I’d lose sleep over it. Not that I’m envious. Well, err, OK, just a little. But, it’s always fascinated me about the big question of the universe – does money really make you happy ?

…having very little money can make you dissatisfied,

but having heaps of money doesn’t actually make you more satisfied”

Social analysts have interviewed several Lotto winners years after and found that these people weren’t happy with their lives. The research shows that having very little money can make you dissatisfied, but having heaps of money doesn’t actually make you more satisfied.

Are You Taking Control?

Part of taking more personal responsibility for our own life is being prepared to take control and better manage our financial situation, no matter what that may currently look like.

At every phase in life, not just in times of uncertainly, taking control of our cash flow is one of the most vital things that we can do to reduce stress and create a sense of peace of mind.

A cash flow is a key tool for planning and controlling an organisations financial success. So why not do the same for your own lifestyle so that you have greater control and security around your destiny.

Financial Security is a Matter of Choice!

By taking a few simple to follow steps, the cumulative effect of your actions could have a dramatic impact on your sense of financial well-being.

The people most likely to succeed are those who have the most control over their financial situation. How much do you feel like you have control over your cash flow right now?

Put Yourself in the Top 3%

Less than 3% of the population have a cash flow and budget to gain more financial control. So why don't more people take better care of their financial situation? Either they don't know how or they haven't made it a priority.

MYOB, Quicken, Microsoft Money are all great financial software packages, but for many a complete over kill for what is needed for having practical peace of mind that puts you personal back in control of your financial situation.

Putting together your own simple cash flow is easy to do and only takes about 45 minutes!  The problem is that it is easier not to invest the time to do it. The choice is yours.

Have You Given Yourself the Best Chance?

Why keep struggling, hoping one day you will have financial freedom - when you can dramatically improve your cash flow situation starting from scratch now?

I was sick of always playing financial catch, I wanted positive cash flow, but didn’t know how to get started 

Can I let you in one a secret ....?

I'm pretty lazy - but putting together your own cash flow is absolutely by far the quickest & easiest way to get control over your finances that I know.   I use this exact process myself in my business and my life, and have for the last 5 - 10 years - so I know it works!

Maybe look at it this way:-

How to Give Yourself a 10% Pay Rise Without Out Having to Ask for One

By having a budget and cash flow you can be in more control of your finances, and it is estimated that you can save 10% of your income by doing so. So based on that theory, if you want the equivalent to a 10% wage increase, do a budget and cash flow. If you are earning say $60,000 per annum, your annual 10% saving could be as high as $6,000. Therefore $6,000 divided by the three hours each year to maintain your cash flow is $2,000 per hour.

How would you like to earn $2,000 per hour and reduce financial stress at the same time?

Many people find it difficult to start a budget and cash flow because they don’t want to know the bad news. But awareness is the first step to any improvement. Why not have more control over whatever situation you are now in financially and then being able to make better informed decisions about your future?

If you're the type who would rather not know where the valuable money you earn is really going, ask yourself this question: Are you controlling your money, or is money controlling you?

The most important time for you to be up front about your financial situation is right now!”

Ok so how do I get started?

First jump on a computer and get yourself a cash flow template.  If you join www.GoalsUnlimited.com you will be able to get a free template and heaps of other useful lifestyle planning tools and systems.

Then fill in your template considering the steps below and remembering not to be a perfectionist with it as the first draft may only be 60-70% accurate. But this is a great start and will help hugely!

1. What is Your Cost of Living?

How much does your lifestyle cost? This includes the basics, like food, clothing, transport, and rent/mortgage. It also includes things like holidays, magazine subscriptions, and gifts/donations. Some expenses are almost unnoticed, or unaccounted for, like the cost of the morning coffee, magazines, or cigarettes. It can be a surprise to find out how these things can add up!

The aim is for you to be clear on where money is going, how much, and when and therefore how much do you have to invest for the future. Or going the other way... how much do I need for retirement and therefore how can I work my cash flow now to make sure I can achieve this.

Tip: Underestimate income and overestimate expenses when doing your cash flow

2. What is Your Income?

How much will you earn this year? Will you earn it in regular weekly, fortnightly or monthly sums (PAYE)? Or will it be more sporadic, with larger sums coming in less frequently (such as for a consultant, or an artist)?

It is possible you will have more than one source of income. Income sources include salary, commissions, bonuses, royalties, dividends, tax returns, even inheritances and birthday gifts of cash. The aim is to be clear on where money will be coming from, how much, and when. If you're not sure - just estimate to start with. Close enough is a great start! Remember, the first pancake is always lumpy!

3. Earn more? Or Spend Less!

If you are in a negative cash flow situation, you have two positive choices - to increase revenue, or to spend less (or a bit of both). It's as simple as that.

A lot of people these days take a third choice, which is to continue spending more than they earn and putting the rest on their credit card. But it doesn't take long for credit card debts to get out of control, so we don't advise it!

You are the product of your choices about money expenditure.

4. Make Informed Decisions

Now that you know your cash flow, you can make more informed decisions about your expenditure and earnings. You may decide you need to take on more work or ask for a raise. Or on the other hand, you might realise you don't really need that promotion and can take some time off!

You can see how buying a new sofa this month will impact on your cash flow and maybe even your retirement savings plan.

You may be able to arrange to pay it in instalments, which may keep your cash flow looking more healthy, or you may decide to do a few extra odd jobs this month so that next month when you buy the lounge you will have the money to pay for it.

Do you really need that lounge? Would the money be better put into superannuation?

To help my cash flow a few years back I started paying my car insurance monthly instead of one big hit during the year. It really helped iron out my cash flow.

5. Make Your Cash Flow Work For You

Make a note in your diary for a little time each month (5-10 minutes) where you will update your cash flow and ensure that it is still reasonably accurate.

Have you got some overtime coming up, where you will be bringing in more money? Have you had an unforeseen expense, like getting the car fixed?

Your cash flow will work best for you if you make the commitment (5-10 minutes) to keep it updated every 2-4 weeks!

Good luck!

Ian Hutchinson is founder of Life by Design® and GoalUnlimited.com  He is a highly sort after speaker and has worked with 50% of Australia’s top 10 companies. By providing the innovative tools, systems and entertaining motivation, Ian enhances companies’ ability to attract, engage and retain your best clients and employees. Ian’s work is based on one key psychological principle: “Everyone is motivated by a better lifestyle”. Through self-leadership, work life balance, work productivity/fulfilment and lifestyle planning, Ian helps you to be more successful and “have no regrets”  He can be contacted via www.LifebyDesign.com.au or (02) 9979 4949

For permission to reproduce this article article in whole or in part,
contact Tanya Mottl on may be contacted by
phone (+ 612) 9979 4949, fax (+ 612) 9979 4969,
or email info@lifebydesign.com.au

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