Cash Flow Planning
Cash Flow and Debt Management
Our firm strongly believes that understanding your cash flow is the foundation to any comprehensive financial plan.
Understanding your cash flow is basically knowing how much money comes in and how much goes out each month.
Do you have a cash flow plan?
Cash flow is a key factor to all plans and it affects all areas of wealth management.
Without a proper understanding of your cash flow, it is difficult to make informed wealth management decisions and very difficult to achieve your financial goals. At DeLauretis Wealth Management, we create personalized structured cash flow plans that can help you achieve your financial goals, fund your dreams and live the life that is right for you.
Debt Management is related to Cash Flow Management. In addition to understanding your cash flow, you must also understand what debt is; what sources and amount of debt you have; and the effect of your total debt within your overall financial plan.
Proper debt management ensures efficient use of cash flow for the repayment of debt resulting from goods and services you previously purchased; ensures you have access to credit if needed; and ensures you make wise borrowing decisions or use debt instruments to your financial advantage.
In practicing proper cash flow and debt management, you can avoid disastrous financial consequences, and prevent erosion of your personal wealth accumulated to date.
Banking & Mortgages
One of the biggest assets an individual will purchase in their lifetime is their home, therefore, we should take more time to review the numbers.
Reviewing your mortgage terms, options and the total interest paid over the life of that debt is imperative to the health of your wealth. The more interest being paid to the bank, the less wealth being accumulated by you.
DWM Mortgage Tips:
When selecting a mortgage, it’s not just about the mortgage rate. Before signing up for a mortgage, you should go through the proper cash flow planning process to determine if the mortgage is sustainable over the long-term with current living expenses and income, through possible interest rates hikes, economic downturns and job loss.