Getting more life out of your money
Behavioural Cash Flow Planning is the art of creating a system for our cash flow while remembering how our minds work with regards to money. It integrates the principles of Behavioural Finance in a way that is easy to use and greatly reduces the day-to-day stress around money.
There are certain categories in our ‘budget’ (whether or not we actually have a budget) where we are at a high risk of overspending. Most of this happens subconsciously, which is why we don’t know where the money has gone.
What solutions have been suggested by others in the past?
- keeping track of your money in an app (like Mint). It offers insight, but this doesn’t stop or address our behaviours
- using your credit card for all your purchases so you can track it. Still doesn’t address our behaviours, or warn us when we’re overspending
- using the envelope method, dividing up money you can spend in different categories into different envelopes. Although this is a step in the right direction, because it uses cash, and thus requires a more conscious action, it becomes really tedious to manage if you shop at places like Costco or Walmart. Here your bill may include anything from groceries to household items, clothing, shoes, electronics and household appliances or medication. How long is it going to take you to figure out how much money to take out of each envelope? Not something that’s do-able over the long run for many.
A Behavioural Cash Flow Plan (BCFP) is NOT a budget. It will make it simple to take charge of your ’emotional’ spending by combining rearranging and automating payments with giving you freedom in other areas.
No need to keep track, or to limit yourself if you don’t want to. No tedious categories to try and figure out. A BCFP is a plan you can stick with. A plan that gives you the freedom to choose. And most importantly, it greatly reduces your money stress.
It’s a better way to get more life from your money, and reach your dreams faster!
Contact me to see how Behavioural Cash Flow Planning can work for you!