Cash flow management is simply the ability to manage your income and expenses along with long term planning for investments, savings goals and debt management.
With Mosaic’s Cash Flow Management System, our clients understand:
- How and where their money is being spent
- Their personal attitudes to money that affect when and how they spend. Your psychological predisposition and attitudes to money impacts your ability to control your spending habits
As part of our Cash Flow Management System, we set up banking structures to simplify the necessary changes for you. You will be able to see how much you are spending and take control of your finances in a proactive way.
Tracking your Spending Apps
Understanding your spending habits is now significantly easier because of the number of apps available. They are easy to use and are relatively inexpensive. We can help.
One app that I am currently using is HomeBudget Lite, which I like for a few reasons:
- Allows you to categorise spending across fixed, variable and discretionary spend
- Can set up multiple accounts for savings, etc.
- Great reporting
- Is portable – runs on iPad, iPhone, Android etc
- Can have two people recording data and then synchronising the spend to one program
With credit so easily accessible, debt can rise to crippling levels through credit cards, personal loans, as well as home loans. Debt is also one of the most powerful tools to generate wealth if structured correctly and used in the right way.
Debt management is far more than just looking at interest rates; it involves ensuring that after you‘ve borrowed money to fund your home or investment goals, debt management strategies are in place to protect you from the risks and events in your life which can affect paying off your loans.
We stress test the debts and look at a number of factors to ensure that taking on debt will deliver the growth results you are after. We look at a number of areas:
- If you were to take on board debt, could you repay the loan?
- If you have a home loan, how sensitive is your budget to interest rate rises or job loss?
- What role will property play in your future? We stress test the debt, addressing points such as: is the loan structured so if you want to change the purpose of the home to, say, an investment property you have the structure to maximise current and future tax benefits?
- Is your home loan competitive? We invite a mortgage broker to look at your loan to see if it is still competitive so you can decide whether to stay with your current lender or not.
Most people see tax as something they have to pay with little control. Our view on tax is that the government sets a legislative framework within which every single Australian can operate and minimise tax. Government legislation invariably presents opportunities but changes may also negate benefits you have in place based on current tax planning strategies.
It often takes a mind shift for people to stop treating their tax advisor as a historian and instead as a tactician.
We actively encourage all our clients to speak to us whenever there is a change in their financial situation, such as a pay rise or when they are about to undertake a financial decision. A simple 15-20 minute conversation can save you tens of thousands of dollars in unnecessary tax.
What you should be seeking from your tax advisor is someone who is not only across the legislation, but more importantly, understands the legislation and what you are trying to achieve. We can then tell you whether you need to do something differently or if you need to change course completely.
Effective tax planning is pivotal to creating wealth. We apply the tax laws to give you the best outcome.