Cash Flow Planning

A Cash Flow Plan, more accurately described as a Behavioural Cash Flow Plan, is a comprehensive financial strategy designed to help individuals maximize their income potential and achieve their financial goals. Unlike traditional budgeting, which can feel restrictive, a Behavioural Cash Flow Plan focuses on creating a sense of financial freedom and control.

What is a Behavioural Cash Flow Plan?

A Behavioural Cash Flow Plan is a personalized financial roadmap that takes into account your income, expenses, assets, liabilities, and long-term objectives. It's created by a certified Cash Flow Specialist and provides specific advice on optimizing your spending to achieve your dreams.

  • It examines your entire financial picture, including income sources, spending habits, debts, and future goals. It's great for the continual spending decisions you make every week, both planned and unplanned.
  • Unlike traditional budgets, it works with your natural spending behaviors, making it easier to stick to in the long run. It emphasizes what you can have, rather than what you must give up
  • The plan is presented as a full report with clear, easy-to-follow spending guidelines. It's ideal for managing daily expenses like groceries, entertainment, and kids' activities.

Why is it Important?

  • It gives you a sense of being in control of your finances, rather than feeling restricted
  • It optimizing your cash flow, it helps uncover hidden funds that will go towards YOUR goals.
  • It provides strategies for efficient debt repayment, potentially saving significant amounts in unnecessary interest.
  • The plan works with your natural spending habits, making it more sustainable than traditional budgeting
  • Given the concerning statistics about retirement finances in Canada, a Cash Flow Plan can help ensure you're on track for a debt-free retirement.

The Reality of Retirement Finances in Canada

Recent studies highlight the importance of effective cash flow planning:

  • Nearly 1 in 3 retirees carry debt into retirement
  • The average Canadian owes $72,950 in non-mortgage debt
  • 48% of Canadians aged 55-64 still carry debt

Cash Flow Planning Worksheets