At Alpha Omega Wealth, we want to do everything we can to set you up for financial success. It is our philosophy that success begins with knowledge. Not only knowledge about methods to grow your personal wealth, but also knowledge of your own current financial position. We have created a few private wealth management calculators including the cash flow analysis calculator.
Why Use a Cash Flow Analysis Calculator
Understanding your cash flow allows you to see a clear path of your financial goals and how to accomplish them. Without any idea of your current cash flow, it’s impossible to make appropriate goals and plans.
A cash flow analysis shows you what assets are liquid which lets you know what areas of your spending and saving are health and what areas are losing you money.
What does a cash flow analysis calculator measure?
The cash flow analysis calculator requires you to enter all your income from places like your salary, alimony/child support, investment dividends, interest earned, Social Security benefits, and retirement income.
The cash flow analysis calculator takes those incoming cash flow components and measures them against the money you spend on:
- Mortgage/rent and utilities
- Recreation and vacations
- Insurance and Medical expenses
- Child care
- Loan payments, auto expenses, and credit card payments
- Clothing costs and subscriptions
- Home maintenance
- Other miscellaneous expenses
After that, monthly taxes and retirement contributions are taken away.
Finally, you’ll get a complete picture of how much money you pay to other people and institutions each month. Once you can compare that to all of the money that comes to you monthly, you can begin balancing those scales more in your favor.
What if Your Cash Flow Analysis Is Not What You Hoped?
After you analyze the money that’s left over after all of the income and expenses are matched, you may not feel hopeful about growing your personal wealth. Hopefully, you have high goals for yourself. We want to work with you to reach your highest goals.
So if, after using our cash flow calculator, you find your finances in a situation that is less than ideal, contact us at Alpha Omega Wealth. We would love to walk through your current personal wealth and build strategies for you to meet your goals.