If you want to better manage your cash flow.
Use a solid cash flow management system.
When I first started out in financial advisory, I was introduced to a simple yet effective cash flow management system which I still use today.
First we open up a Macquarie cash management account which is free to open up and has no ongoing fees.
We then put all your income into this one account including salary, rental income, investment dividends, and tax returns.
Next, we set up the payment of all your personal bills via direct debit and BPAY including mortgage repayments, rental payments, utilities and so on.
Based on the budget we complete together, we transfer you a fortnightly cash living allowance to your nominated ATM debit card.
By separating your fixed costs and discretionary spending, and receiving a fixed amount for this spending, overtime you learn to live within your means and not overspend.
When high income earners fill out their budget there is a significant surplus which they aren’t investing.
So, don’t make it your aim to pay off your credit card within the interest free period.
Instead understand your cash flow position and use this surplus for your investment strategy.
This will help you achieve your wealth creation goals.