Cash Flow Planning
A cash flow plan provides a detailed overview of your current and projected financial status, offering insight into the inflow and outflow of funds over your lifetime.
A cash flow plan provides a detailed overview of your current and projected financial status, offering insight into the inflow and outflow of funds over your lifetime. It’s a dynamic tool that can considers various scenarios, such as high inflation, low investment returns, and changes in circumstances, to ensure financial preparedness.
At Purple Fox Financial Planning, we offer a cash flow plan to our clients as a standard service, ensuring they have a clear understanding of their financial landscape and goals.
What is a Lifetime Wealth Forecast?
The cornerstone of financial planning, your Lifetime Wealth Forecast is created using sophisticated software to model your financial future based on Income, Spending, Assets, Debts, Taxes, and Inflation. It allows for the exploration of different scenarios to assess the impact of decisions or potential changes in your circumstances.
*The Financial Conduct Authority does not regulate Cashflow Planning.
Cash Flow Planning Benefits
We advocate for cash flow planning for several reasons:
Peace of mind
By assessing potential future impacts before making significant financial decisions, you gain confidence and peace of mind.
Timing insights
Cash flow planning provides clarity on when to pursue goals like retirement, aligning aspirations with financial capabilities.
Visualisation
It offers a graphic representation of your financial roadmap, simplifying complex financial situations.
Resilience testing
Through ‘What-if’ scenarios, it evaluates financial resilience against unforeseen events or market fluctuations.
Confidence boost
Informed decision-making empowers you to confidently pursue financial goals.
Successful Cash Flow Planning Process
To develop a comprehensive cash flow plan, understanding your current financial situation and future goals is essential.
Areas of focus include:
Income sources: Identifying current and potential income streams to maximise financial potential and adapt to changing circumstances.
Expenses and life goals: Planning for future expenditures and life goals, such as travel or retirement, by aligning them with your financial resources.
Inflation and investment returns: Factoring in realistic assumptions about inflation and investment returns to ensure financial plans are resilient across economic climates.
Partnering with a Financial Planner
Choosing the right financial planner is crucial. At Purple Fox Financial Planning, our goal-oriented approach and holistic financial advice ensure that your financial goals are met effectively. To begin your cash flow planning journey, schedule a meeting with us to discuss your financial situation in detail.