How can you take control of your cash flow? Let us help

Jan 24, 2017

Time flies when you're waiting for something awesome! Or well, that might not always be true, but it has certainly flown for us while we've been building out the latest Fincheck tool for you. In November last year, we unveiled the Fincheck Credit Score tool with you and we've seen many South Africans use it since then.

We get inspired to do even more when we see how many people are being helped by this simple tool. Knowing your credit health is a very simple piece of information to direct your next financial step. (If you haven't received your credit score yet, get it for FREE here

With that said, let's get back to the latest - the Fincheck MyFinance Tool. In the next couple of posts, we'll be talking about some of the features and how these features apply to your financial health. SIGN UP to stay tuned at the bottom of the page.

Why is this important for you to follow? Well, because this is not just another budgeting tool! It's a tool that will allow you to see your financial health at a glance, and more in-depth (if you want to go there). Budgeting is only a very small component of that, and unfortunately the only core focus of too many tools out there.

One of the main features of the Fincheck MyFinance Tool will include Cash Flow and Transaction sections. Let's have a look at why this is so important for your financial health.

Cash Flow will make or break your financial health - this is why

No available cash = financial opportunities come to a standstill

When you have no available cash flow, these are some of the common problems that most people experience:

  • Cannot pay financial responsibilities like car payments, house payments, debit orders or credit card payments
  • Cannot maintain household or family expenses like basic food needs
  • Cannot go out with friends or do related recreational experiences
  • Cannot enjoy financial opportunities that come your way

The above are a couple of cash flow problems that are extremely common in South Africa. With the help of the Fincheck MyFinance Tool, you can break away from the pattern of spending more than you earn! Here are some useful things you will be able to do with the Cash Flow/Transaction area:

  • See at a glance your amount of money coming versus going out
  • Keep track of your latest transactions (especially when you don't get an SMS of the transaction
  • See what you are spending money on
  • Update your budget to reflect your expenses still coming up for the month

So, how can you use the above information to create a better financial future for yourself? We've compiled some of the simplest steps to improve your cash flow below!

1. Stop spending more than you earn

This step alone will take your personal finances from rubbish status to healthy status! This is the most important step to reverse the debt cycle over one's life. Use the Fincheck MyFinance Tool to compare the amount of money that has come in versus the money that is going out.

2. Revisit your expenses, cut some out, make others cheaper

Are you spending money in areas where you can start saving it towards a positive cash flow? Think of spending patterns in your life like fashion shopping, coffee shops, takeaways, and recreational experiences. Then, take a look at the amount you spend on things. Are there cheaper alternatives that you can start using?

This includes items like:

  • Cars
  • Insurance
  • Cheque Cards
  • Groceries

3. Allocate money to an emergency fund and savings

A key strategic move towards a healthy cash flow situation is to put money towards an emergency fund before you spend any money at all. Follow that up with a little extra portion per month towards a savings account. This can be the same account, but the idea is to fill it up like a bucket under a leaking roof (or running tap if you're disciplined enough!).

4. Allocate money to your responsibilities first

Many South Africans spend the money that should have gone towards things like house payments, debt and other living costs on other things. These expenses are often impulsive (like the latest sale) or spontaneous (drinks with friends). This leads to increasing credit card limits to cover the responsibilities that come after this. Or, taking out personal loans to cover the increasing debt. As with an emergency fund, put the money somewhere you cannot spend it until the debit order goes off! And when you're left with little else to spend on lifestyle expenses? Well, that's where the following comes into play!

5. Make some extra money

Make more money by leveraging the skills you have towards some extra money. Who knows what will come out of it - maybe your first ever business? Or, work hard towards that next promotion that is within your reach!

6. Set some goals to keep doing the above

A clear vision and goal will help you to work towards a healthy cash flow situation. It will keep you motivated to apply the above steps! Think about the things that bring you personal fulfilment and make them part of why you're tackling your cash flow.

We trust the above steps and the Fincheck MyFinance Tool has inspired you to start building a better financial future with our help! If you have a moment, we would appreciate it if you can send this along to a friend that can use the above tips.

Sign up in the area below to continue getting posts like these in the weeks to come and SIGN UP FOR THE FINANCE TOOL HERE if you're to take control of your financial future.

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