IFI Cashflow Video

Most people focus on the cash flow side of the balance sheets – the money that comes in and the funds thatgo out. It is this area that often causes stress, arguments and everyday anxiety. For many people, not having an understanding of cash flow, or not getting a handle on it, can result in not being able to enjoy life until later rather than sooner.

We first need to understand that cash flow falls into two basic areas – Lifestyle and Net Worth (however, the traditional financial planning approach would probably list about 100 different areas). There is a portion of cash flow that leaves your plan for different reasons such as for food, clothing, travel, entertainment, education, great memories, etc. Those funds will never come back. This total amount establishes everyone’s ultimate lifestyle.

The second area of cash flow represents the funds that either support building your net worth (such as mortgages) or support leaks from your plan (such as taxes and debts).

By understanding the Cash Flow conversation, we can change the way we approach the above-the-line cash flow calculation. After seeing the results, clients will know they can commit to the numbers since they are already doing so. It is these numbers, which are not discretionary, that IFI utilizes as the foundation for our clients’ future success.

Click to view our video and learn a new way to present to your clients, separate your self from the masses by changing the conversation on how to look at a traditional client balance sheet.