Cash Flow and Budgeting

[web730]

This is something so intriguing for everyone to ponder which I want to start the thread about...


Don't you notice so many, many people having difficult time to budget right especially creating more cash flow out of their daily living?

Yup - very common, unfortunately!


Several years ago I read the cashflow book and few other books by Rich Dad and few others. I then learned quite lot and wish that I learned those while in school and college back then... so did my friends and associates say, too.


They even stress the schools and colleges to have the cashflow and smart budgeting courses which is obviously severely-needed. Several schools and colleges finally started those while several ones are following up underway so it's good... assume that more and more shall follow up as well in the near future.


But it's clear enough that they should have taught in schools and colleges back then... but too late for us old farts. Now there are many books and sources online are available, charge or free online. (e-books, too)


Some writers and educators said that they blamed it on the education system which was designed by super rich and politicians to teach kids to become employees, not to be taught going into business world owned by themselves. They even suspected that in the distant past the rich establish the education system to favor their way by having them educated the way to become employees working for them... hmm interesting.


We know that there was about 95% employees while 5% own the businesses for a long time (in USA)... roughly 5% more of those former employees turning into the businesses running by themselves with the technology advantages by now.


Many employees cannot increase cash flow sufficiently unless they have to work two jobs or something like that. Such like pay increase or adding more hours usually don't satisfy those employees who need more cash for whatsoever reasons. Yes, life is hard, but there are better solutions possible for those who seek more cash flow and/or smarter budgeting. It's ugly truth that many employees hate to hear or listen or admit to say whenever approached with this issue(s) yet it doesn't have to be... it's more common to everyone, poor or rich indeed.


It's quite a long story to post more here. But I really recommend you some to read those kind of books which will surprise you just like it did for me. Very interesting and educational! Few friends and I discussed this often back then after reading those... it was always fun talking about it by the way.


Remember that we all do that everyday for our/your living so we all need to know how to create more cash flow and budget wiser. It's good to have DeafMortgage and few others aka Alex (forum owner) and me who could help or advise or share with those cashflow/budgeting issues... there are indeed ways to create more cash flow as matter of fact, not to work two jobs or whatever like that... those don't have to, really! At last, it's indeed very important part for your and our daily living, like it or not.


Let's shall share more about the cashflow and budgeting from now on, hopefully... I will post little by little over the time.

 

[Deaf Mortgage]

Indeed. I noticed the same thing with cash flow.

There are million ways to create cash flow. One of tip is to spend less by eliminating your luxury then begin working pay off debt. From there you can create a better cash flow.

I have read Rich Dad and Poor dad concept of cash flow. Impressive and its very true. I could watch everyone get nice fancy car when I have cheap paid off car pushing over 100k. I prefer to keep cheap car with good mileage than buying a car with a car loan with ok mileage below 30.

Car loan is one of the budget buster in today society. Too many people want to buy a nice fancy truck or car. You name it. It better to pay off the car because its "Dead Asset". No return of value of the car. Some people manage to make profit buy and sell the car but many of us do not have time to buy and turn around to sell the car.

Look at your budget to see if car loan is really hurting your budget. Trade in for cheaper car or pay off the loan to $0 balance. Those will help you to create an excellent cash flow.

I have seen a 20k salary with jaguar car loan. It was no brainer to trade in the jaguar to smaller cheaper car then can buy a home. Jaguar's car loan was 500-600 monthly but with 20k salary is not enough to handle other things. Trade in for small car like 8k or less then your monthly will be below $200. You save 300-400 a month of cashflow that can direct to your saving. $300 monthly = $3,600 a year in saving ($300 x 12 months).

If you really want to learn cashflow by games. Play Computer game Sim city 4. It will put you in test of cash flow. Or play Rat Race by Rich Dad and Poor Dad. I plan to buy Rat Race sometime in future to practice more on cash flow.

Its true - I wish the school will teach about cash flow. Our economy will be more stronger and stable if people had good cash flow. At beginning will look differently but it will improve later on in 20-30 years. But by watching my Dad and Mom doing spending habits, it taught me about cash flow. Thanks my parent that my wife and I do not struggle with cash flow. Just spending less than we need.

 

[web730]

Indeed. I noticed the same thing with cash flow.

There are million ways to create cash flow. One of tip is to spend less by eliminating your luxury then begin working pay off debt. From there you can create a better cash flow.

I have read Rich Dad and Poor dad concept of cash flow. Impressive and its very true. I could watch everyone get nice fancy car when I have cheap paid off car pushing over 100k. I prefer to keep cheap car with good mileage than buying a car with a car loan with ok mileage below 30.

Car loan is one of the budget buster in today society. Too many people want to buy a nice fancy truck or car. You name it. It better to pay off the car because its "Dead Asset". No return of value of the car. Some people manage to make profit buy and sell the car but many of us do not have time to buy and turn around to sell the car.

Yes, depreciation!

Look at your budget to see if car loan is really hurting your budget. Trade in for cheaper car or pay off the loan to $0 balance. Those will help you to create an excellent cash flow.

I have seen a 20k salary with jaguar car loan. It was no brainer to trade in the jaguar to smaller cheaper car then can buy a home. Jaguar's car loan was 500-600 monthly but with 20k salary is not enough to handle other things. Trade in for small car like 8k or less then your monthly will be below $200. You save 300-400 a month of cashflow that can direct to your saving. $300 monthly = $3,600 a year in saving ($300 x 12 months).

If you really want to learn cashflow by games. Play Computer game Sim city 4. It will put you in test of cash flow. Or play Rat Race by Rich Dad and Poor Dad. I plan to buy Rat Race sometime in future to practice more on cash flow.[/QUOTE]

I love playing the Cashflow 101, both board and CDs (101 & 202) that I still have them. But I didn't play them since two years and want to play them again someday.

Its true - I wish the school will teach about cash flow. Our economy will be more stronger and stable if people had good cash flow. At beginning will look differently but it will improve later on in 20-30 years. But by watching my Dad and Mom doing spending habits, it taught me about cash flow. Thanks my parent that my wife and I do not struggle with cash flow. Just spending less than we need.

Very true so! Not many parents and school systems teach kids about the cashflow and budgeting. It should be done, obviously... shame! I was thinking of recommending some deaf schools to start them so I will first try to advise FSDB soon - only a half hour drive for me. Then I will stress those few ones next and hope it starts from there on and spread on to other schools. There are several hearing schools that started them already... they said that kids love them. Cool

 

[VamPyroX]

The problem I have with cash flow is that a lot of it goes to gas.

 

[web730]

The problem I have with cash flow is that a lot of it goes to gas.

Yeah, unfortunately for many americans and foreigns due to the gas and food increases! But it was (or is) to be expected. Yet we think that the gas prices are shooting off chart (too much in short gap). Hope it reduces soon.

But those can create more cashflow other than their current income-making... that is the one of such ways to overcome.

Think outside the box that the majority are stuck in. Hope you get my drift here.

 

[ClearSky]

I notice that gas stations that are generic or discount uses up gas quicker than places like SHELL. Also discount gas are not good for your car motors. There's some valve in there that discount gas makes dirty that Shell gas cleans and keeps them clean. I think it's worth to pay for the good brand than discount gas station. You might see your gas lasting longer.

 

[web730]

I notice that gas stations that are generic or discount uses up gas quicker than places like SHELL. Also discount gas are not good for your car motors. There's some valve in there that discount gas makes dirty that Shell gas cleans and keeps them clean. I think it's worth to pay for the good brand than discount gas station. You might see your gas lasting longer.

We heard that before yet I'm not too sure as if that's true or not. Could you prove this, ClearSky?

If in case this is true, it doesn't make a big difference unless counting more than 300 miles or more probably. Depends on.

----------------

Speaking of gas prices... (disregarding the so-called gas fuel qualities)

$4.10 per gallon x 15 gallons = $61.50

$4.00 per gallon x 15 gallons = $60.00

only $1.50 difference here... unless fill up 10 times at $4 flat each time; it saves you $10.50.


Even I recently learned that many gas stations use 10% ethanol/90% gas which cause less fuel efficiency. There are so few gas stations use 100% gas (the better). So does Shell provides 100% gas? maybe but let's find out.


Don't forget to air tires to its maximum (psi)... clean air filter and etc that helps, too.

This is only about smarter budgeting, ofc.

Reduce spending and increase your cashflow results better is actually what we talk about. There are many ways to create more cashflow other than gas spending itself. Will post some other examples next times whenever I could.

 

[inochi]

This is amazing on what my husband and I did to increase our cash flow in our pockets/savings. We typically take separate cars to work but as the gas prices went up, we made a decision to car pool, we are only 10 minutes away from each other at our work sites. We were shocked we have only filled our cars' tanks 3 times a month when we usually fill up 6 times or so. We were just sitting across from each other one morning and say, wow.. when was the last time we filled our cars. Amazing..

 

[Phillips]

Cool and interesting

 

[Deaf Mortgage]

We heard that before yet I'm not too sure as if that's true or not. Could you prove this, ClearSky?

If in case this is true, it doesn't make a big difference unless counting more than 300 miles or more probably. Depends on.

----------------

Speaking of gas prices... (disregarding the so-called gas fuel qualities)

(Gas 1) $4.10 per gallon x 15 gallons = $61.50
(Result MPG = 32, 15 gallon = 480 miles on tank)

(Gas 2) $4.00 per gallon x 15 gallons = $60.00
(Result MPG = 29, 15 gallon = 430 miles on tank)

Result Gas 1 has 50 more miles on same amount of gallons.

Reverse math here. Look at Gas 1's distance is 480 miles and Gas 2's distance is 430 miles.

Gas 1 is 32 mpg on 480 miles means 15 gallons. Priced $4.10 = $61.50 to arrive the destination.

Gas 2 is 29 mpg on 480 miles means 16.55 gallons. Priced $4.00 = $66.20 to arrive the destination.

So by distance, you will see the difference. Every 480 miles, you are saving $4.70 (more than 1 gallon worth). I know it appears small but it adds up in long run. In short run, we are wasting money on cheap gas but think in long run, you will be saving few bucks there.

only $1.50 difference here... unless fill up 10 times at $4 flat each time; it saves you $10.50.


Even I recently learned that many gas stations use 10% ethanol/90% gas which cause less fuel efficiency. There are so few gas stations use 100% gas (the better). So does Shell provides 100% gas? maybe but let's find out.


Don't forget to air tires to its maximum (psi)... clean air filter and etc that helps, too.

This is only about smarter budgeting, ofc.

Reduce spending and increase your cashflow results better is actually what we talk about. There are many ways to create more cashflow other than gas spending itself. Will post some other examples next times whenever I could.

I added red part as another thinking area. I have tried and it works. It depend on your foot and attitude of the day. If you having bad day... you waste gas. If you having good day, you do what you do. Bad day will erase all good positive result that you tried to gain.

Cash flow really depend on your attitude and decision making. You can see it in your food habits, driving habits, budget habits etc... All points to attitude and decision making.

 

[ClearSky]

We heard that before yet I'm not too sure as if that's true or not. Could you prove this, ClearSky?

I have tried it from experience.

Why don't you try it for one month and see for yourself?

Sometimes you have to try things yourself instead of requesting proof.

Example, I have read many times that it's cheaper to buy generic medications and they work the same. I have found from experience that they are not always worth the money because they do not work the same as the brand medication.

This is the same for gasoline.