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The Importance of Cash Flow Analysis and Planning, Part 1

Couple Planning Finances

Life certainly has a
habit of throwing us all unexpected curveballs. While you can't plan for all of
the events in life to come, you can take precautions with your finances to help
safeguard what and who matters to you. 

Analyzing
your cash flow is an essential process that allows you to simultaneously gain a
complete understanding of your current finances, and prepare for a sometimes
unpredictable future. When you have a comprehensive understanding of where and
how your assets come and go, you can better plan for the near and distant
future. At H&A, we can
help you use cash flow analysis to prepare for and weather economic storms as well
as clear skies. Here's a better look at what that all means. 

What exactly is cash flow analysis?

Cash flow analysis is
the assessment and projection of your income, expenditures, and assets
throughout your lifetime. You should take milestone events, goals, and
aspirations into account alongside one-off expenses that you anticipate or have
come to expect. It also helps in the process of making some strategic
guestimations, such as investment returns or future rates of inflation.

This analysis helps to
determine how likely you will be to fulfill your expenses each year based on
your capital and income. The results of this analysis provide you with a
picture of your current financial health and what you need to do to plan for
and pursue the future you desire. 

What are the benefits of cash flow analysis?

Cash flow analysis
will first take a look at how you're spending. Some of that spending will be
essential, of course, and some of it will be lifestyle-based. Separating the
two enables you to identify areas where you could save more strategically or
put your money to more efficient use. Cash flow analysis will show you how you
can free up income or find ways to be more conservative in your spending. That
way, you can put more towards savings and plan for a better financial future.

One of the main
benefits of cash flow analysis is that it removes some of the uncertainty and
guesswork regarding your future and how you approach your retirement planning.
With detailed cash flow analysis, you'll be able to see how a financial
decision today can affect your future. It also highlights otherwise hidden
problems or potential hazards and gives you time to plan for them accordingly.

Let the professionals help you with cash flow analysis.

Carrying out a cash flow
analysis is incredibly useful, but it can also be incredibly complicated. Many
people find enlisting the services of a financial professional incredibly
helpful. A professional can help you get the most out of your analysis and help
you implement the changes you need to make to grow and protect your assets and
wealth.

We encourage you to consider the benefits of going through cash flow analysis with a professional team. At Hapanowicz and Associates, we believe your vision is our guidepost. That means we pair that with a comprehensive understanding of your finances, and giving you the best recommendations based on a reliable analysis so that you can better secure your future.  To learn more about cash flow analysis, any additional aspects of financial planning, or to get started, call our team at H&A at 412-261-5966 or feel free to email me directly, at chapanowicz@hapanowicz-associates.com