3 steps young people can take to boost cash flow


3 steps young people can take to boost cash flow

New research into Australia’s economy has found that from January 1 to 31 March of this year, debt increased for 18 to 29-year olds more than any other age group in Australia. As debt increases, cash flow becomes a problem. 

 

This places unfair stress on young people and makes it harder for them to make ends meet. However, a sound financial strategy can go a long way towards minimising debt and in turn, increasing cash flow.

 

Here’s how.

What’s cash flow?

Before we delve into how cash flow can be improved, let’s take a moment to define what the term actually means. Cash flow is the net amount of money transferred in and out of a person or business’s account.

 

Cash flow is liquid, which means it is not tied up in assets, like property, so it is easy to access. If you don’t have positive cash flow, you probably find it hard to pay bills, or save and manage unexpected expenses.

 

You may also struggle to plan and pay for holidays, save for a deposit or manage your personal budget. This probably leaves you feeling frustrated and out of control, when it comes to your finances. If this is you, you are not alone.

How can I get back on track?

Luckily, there are people in the world who specialise in helping others transform their finances, and in turn feel more confident about their future. 

 

These wizards are called ‘financial advisers’ or ‘financial planners’.  Of course, they’re not really magic, they just use proven strategies to help people improve their cash flow and manage their finances more effectively.

 

More specifically, a financial planner identifies gaps in the way a person currently approaches their finances, and then recommends how they can be effectively bridged. They also identify opportunities people may be unable to see.

 

A good financial planner is like a coach, who works with you to get you where you want to be, with a tested step by step process. They also help you with:

 

  • Understanding your needs, including what matters to you, so the advice they provide is achievable and makes sense to you.
  • Assessing where you’re at financially, including your strengths and weaknesses, so your financial strategy is personally tailored to you.
  • Helping you to see that regardless of what you have, it is possible to achieve your financial goals with effective financial management.
  • Providing you with the tools, knowledge and confidence to take control of your finances, so you feel empowered.

What’s the plan?

Most big changes in life are the result of smart planning, so it makes sense to do the same with your finances. A good financial planner will take you through a series of steps, in order to achieve the goals you’re aiming for.

 

At Capita, our approach is tailored to the individual we’re working with, so the plan below is really more of a framework, which is customised to your unique goals and circumstances.

Your 3 Step Plan

1. Creating a structure based on you

  • We create a banking structure for your 5 primary spending categories.
  • A spending plan is established, which puts money where it needs to be.
  • Then, we help you develop habits that get you on the path towards your goals.

2. Measuring and Feedback

  • Now, we create a subscription to the smart online cash flow platform we use.
  • This platform enables us to measure your transactions and report on how you’re progressing in relation to your plan.
  • Step 2 is about seeing where you’re kicking goals, and what areas of your financial life could be improved on. 

3. Wealth accumulation and goal setting

  • Now your plan is working well for you, and you’re able to spend without guilt, it’s time to set some realistic goals to progress your finances even further. 
  • These may include:
    • Consolidating debt.
    • Building wealth in order to purchase your first property.
    • Investing in shares or property on a regular basis.
    • Funding lifestyle goals, like holidays, having a baby or finally buying that boat.

With the guidance and support of a Capita financial planner, you can transform your finances and feel more confident about your future. These 3 steps offer a proven framework, which builds your wealth and helps you to achieve your goals.

Want to get started?

If you’d like to set your financial plan in motion, please get in touch. We will tailor a cash solution that works for your unique circumstances, without overcomplicating things. 


Get started now.

 

Financial Advice Disclaimer: The opinions and recommendations provided are not intended to be relied upon as personal advice as they do not take into account your personal circumstances. You need to assess your own position or call us for professional advice

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