Cash flow management

I have held several discussions lately about household cash being tighter with the cost of living going up. In all instances I asked if they knew exactly where the household income was being spent and did they have any strategy to combat the financial strain on the house. The answer: no idea where the money really goes so no idea what can be done.

I tell clients all the time to do a budget then to monitor the monthly expenses. This year I have decided to practice what I preach! I have made a commitment every month to sit down and add up all of my receipts, it is has been a real eye opener. $2 here and $5 there all do add up and often to alot. It has  made me stop and think before I buy - do I really need it?

My biggest appreciation in this process has been that everyone is different when it comes to understanding cash flow and that you need to have a system that works for you. There are many different ways to structure your bank accounts and payment options. The system needs to be easy to use otherwise the money juggling act becomes too stressful and overwhelming. I have plenty of budgeting tips and tools so let me know if you, your friends or family want to know exactly where the money is going and more importantly, how do you combat the cash flow stress in life.