Personal cashflow - Taking the whole life view

The personal cashflow modelling tool is a robust way of predicting the impact of each financial decision, not just in the short-term, but in the long-term as well.  It is too easy just to focus on the issue at hand; but each change in circumstance, expenditure decision and savings/investment choice will impact on every subsequent stage of your life. 

Of course, life has a habit of throwing unexpected events in the way, such as illness, divorce or redundancy, as well as the perhaps more planned (but still unpredictable) life events such as marriage, starting a family or building a career.  

Each of those events will affect every single aspect of your financial position into the future, so the ability to easily see both the consequences of such events and the effects of actions you can take to mitigate them, is extremely useful. 

A Personal Cashflow Plan is a dynamic thing; it’s not set in stone.  You can use it throughout your life to plan your future, sense-check your present, and above all to ensure that the money won’t run out at any stage (what a business would call ‘negative cashflow’).  Cashflow management is not something which should be left to the corporate world; we all need to embrace the concept, and with such a powerful online tool, doing so is easier than it has ever been.