Proper cash management systems revolve around four critical components, often referred to as the Four A’s.
Gathering relevant financial documents together, keeping them close by, and staying up on income and expenses through an organized, systematic format, such as a spread sheet, can keep things clear.
Reviewing your financial situation once the full picture
is clear with all income and expenses can result in more
surplus and less shortfalls. Seeing the whole picture
can help reduce expenses, and any extra funds can be
used to pay down debt or investments.
One of the most important factors is to distribute
income according to financial commitments and
priorities, distinguishing between real needs and
wants, and ultimately reducing expenses by reducing
A rigid budget is hard to follow, and likely to fail.
Making periodic changes when necessary will help to
keep things on track.