Your financial freedom business - the cash flow statement

Helping you become more financially savvy

Personal Finance

Monday, 17 January 2011 00:00

As a potential owner of a business you want to ensure that the business has the cash flow from operations necessary to meet all current liabilities. This is the same for anyone running their own Financial Freedom Business. Inadequate cash flow from operations (i.e. job) may force you to generate more cash through the sale of assets (i.e. selling investments) or through financing (i.e. more debt). This is why it is crucial to have in place a monthly spending budget and to have as part of that budget forced savings, other than your mortgage payment.

Book Suggestion

Financial Statements: Financial Statements, Balance Sheet, Statements on Auditing Standards, Cash Flow Statement, Income Statement

If things get tough for a couple of months do you really want to be forced into creative financing techniques to survive? Financing your cash flow requirements through the issuing of more debt is a vicious game that can end the dream of owning your Financial Freedom Business. There are ways you can setup some flexibility into your current debt obligations and this is especially important when setting up your mortgage. Having a flexible mortgage structure can be a big help smoothing over the month to month operations of your home budget. We know that operating your personal and family cash flow has some fixed monthly requirements and some that are surprises. Having flexibility built in to some of those fixed cash flow requirements can be a real savings.

Own Your Life,

Thomas DeSchutter

Your Wealth Advisor

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