At Power2 in Mackay, we help everyday people make good financial decisions. So, when we heard many of our clients were struggling to cope with skyrocketing living expenses, we worked out a way to help them.
We developed an easy-to-follow personal budgeting and cost control system, the Cash Flow Management system, to help identify – and plug – holes in the household budget.
Our system is similar to that used by businesses to control their financial position, but it comes with a fixed price tag that everyday people can afford.
Many of our tax clients said they felt strapped for cash this year as rent, and living expenses skyrocketed. They were concerned that, although they were receiving good incomes, they couldn’t get on top of their home loans and credit cards.
We show people where their household budgets are leaking and how to plug the holes. We’ve had great results, with many of our clients already clearing credit card debts and accelerating their home loan payments to get ahead financially.
Our “Cash Flow” service incorporates five simple steps that will put you on your feet in no time!
1. We sit down with you and work out a personalised budget.
2. We approach your household budget like we would a business, arranging your monthly transactions into a profit and loss report, showing income from wages, Centrelink and other sources. We go through every payment for the month and split it into various expense categories such as food, loan repayments, insurance and fuel. The income less the expenses shows how much the family has saved and how this measures up with their budget.
3. Each month we go through the results with you so you learn more about your spending habits. We then revise the budget for the following month.
4. We report to you every month to let you know how you are progressing towards the agreed target. That target can be to simply save funds for a house deposit or it can be a targeted reduction of an existing home loan.
5. We sort out credit card debts and make changes to your banking arrangements. This smooths out your cash flow and allows you to plan ahead for major expenses like holidays!
Who can benefit from adopting the Cash Flow system?
If you are trying to save for a house deposit or pay off your home loan faster, we can help you.
When we did this year’s tax returns, we discovered hundreds of clients had their home loans and savings accounts set up incorrectly. Many had lines of credit that allowed them to borrow more and more money, and they had maxed out credit cards with huge spending limits.
Lines of credit can only work if spending is controlled. It’s important to remember the banks make more money if your home loan goes up – and you’ll pay a lot more interest over a longer period.
In today’s economy, cash flow is king.
If you have a bank account that leaks, the team at Power 2 can help you plug the holes. Call our office in Mackay today on 4957 7574 to make an appointment or contact us on enquiries@power2.com.au
Power 2 - Helping Everyday People Make Good Financial Decisions