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Cash Flow

What is Cash Flow Control?

What is Cash Flow Control?

by Bob & Kristi LaMontagne

"Understanding the principles that God and money are not isolated and how to control my cash flow"

We see in the Bible, in the third Book of John verse two that God and Money are not isolated. No. In fact, God wants His people to prosper. To do that, we simply must be accountable stewards and that involves keeping track of god’s money, which leads us to the subject of cash flow control.

If you can’t measure something you really don’t know what you have. We are commanded in Proverbs 27:23-27 to know the condition of our “flocks”. This simply means that God wants us to keep track of our financial resources—how they are spent, saved, or wasted. Experience has shown that carefree spending without a good tracking system will lead to small and large amounts of money slipping right through our hands, wallets, and purses without us even being aware of it. Thanks to Bill & Maureen Sitter’s workbook, Financial Freedom in 7 Weeks Plus, and our involvement in the 7 week small group study, we now have a thorough understanding concerning accountability and good stewardship. These are needed to develop a good tracking system helping us achieve our ultimate goal to become debt free, to live the life God has chosen for us, and to pass on a legacy of God’s prosperity—having all the resources we need (time, talent, and treasure) to accomplish what God has called us to do.

Understanding the Positive Cash Flow Margin concept

Understanding the Positive Cash Flow Margin concept

by Glen Becker

God designed this world so that you require food, clothing and shelter to live. That means that it is impossible to save 100% of your income. So, you need to plan how much to give, how much to spend and how much to use for other purposes.

There are certain priority payments which must come first: tithes, any giving you have committed to the Lord to make, your taxes, and the minimum payments on debts. Beyond these, there are the regular expenses of housing, food, clothing, etc. You have some discretion on these, but as God planned, you do need these things. Income that is not used for these purposes is available for meeting your financial goals: faster debt repayment, building a cash reserve for emergencies, savings for retirement or special purchases, and building an estate to leave to your heirs.

This available income is called “cash flow margin.” You can think of it as your freedom of choice. If your cash flow margin is:

Positive: You have real choices on what to do with your money.
Zero: You have no choice—it’s all gone.
Negative: You are forced to borrow more each month.

Thus, cash flow margin is all about choice. Sadly, most people do not know their cash flow margin. If you do not know yours, the money will disappear by default. Usually the only way to have a positive cash flow margin is to plan to have one. That requires listing your income and expenses, doing the math, and seeing the number for yourself.

God already knows the number, and He wants you to know it, too. Proverbs 27:23 (NIV) says, “Be sure you know the condition of your flocks, give careful attention to your herds.” This includes knowing whether there is enough food to feed the flock. In the same way, you must know whether your spending is allowing you to move ahead financially or not. If not, you can adjust your spending plan until you are happy with the result.

You want to achieve your financial goals. Planning for a positive cash flow margin is the practical way to begin. You will then be able to use the money according to your priorities.

Improving my cash flow control

Improving my cash flow control

by Bob & Kristi LaMontagne

Accurate records are necessary to improve cash flow control– you need to know your current financial situation and establish future financial goals. In Luke 16:1-3, we are instructed to give an account of our management, so we are clearly responsible for the administration of our God-given resources. There are three proven cash flow systems available to help you keep track of your money on a daily, monthly and yearly basis and achieve financial freedom from all debt. These are the envelope system, computerized PC based software packages, and a three form manual cash flow control system. Financial Freedom in 7 Weeks Plus, by Bill and Maureen Sitter, will introduce you to these effective cash flow control systems which will enable you to manage God’s resources more effectively while allowing you to become totally debt free.

How can I control my spending with an envelope?

How can I control my spending with an envelope?

by Amber Drabek

 

I never dreamed that I would be stuck in a financial hole, as deep as I was, three years ago. God had led me to a new chapter in life and to a new city. However, the choices I had made financially finally caught up with me. Whenever I felt empty inside, I would grab my credit card and start spending. I needed my God to fill that empty place inside of me—not material possessions! God placed it on my heart that He had plans for my life and they were beyond anything I could ever imagine! Jeremiah 29:11 (AMP): “For I know the thoughts and plans I have for you, says the Lord, thoughts and plans for welfare and peace and not for evil, to give you hope in your final outcome.” However, the question that I had for myself was: How can these plans come to fruition if my god was a credit card?

The Lord came to my rescue once again and led me to the Financial Freedom in 7 Weeks Plus book and course. God used this program to show me ways to control my spending and my cash flow. A cash flow system is a way to keep track of where your money goes and how it is spent, saved, or wasted. One of these cash flow systems is an envelope system. A flexible spending plan is projected and planned to allot specific funds to specific spending categories. Some examples of these categories are as follows: groceries, rent, clothing, entertainment, and savings.

Now, to use the envelope system, take your envelopes and label them with these specific spending categories. You can use whatever category you choose, but those that you have a more difficult time controlling are great places to start. Once you receive your paycheck, place the allotted cash monies into the envelopes. A log sheet or register should be used, for each envelope, to track incoming and outgoing monies. If your spending plan is balanced with a positive monthly cash flow, then there should exist sufficient monies for each envelope. Once the funds from an envelope are used, then spending from that category must be stopped for that time period. Money can be transferred from one category to another, if need be. However, new debt is not an option. Restraint and discipline are required for the system to work properly.

A simple envelope cash flow control system has enabled me to avoid the use of credit cards and stop overspending. This has been imperative for me to remain on a road to complete financial freedom and to achievement of God’s life plan for me. Of course, for anything to flourish and prosper in life, God has to remain in the center. I have to continually pray and to remain in God’s Word. “Then you will seek Me, inquire for, and require Me and find Me, when you search for Me with all your heart.” Jeremiah 29:13 (AMP)

Computers and Cash Flow Control Software

Computers and Cash Flow Control Software

by Bob & Kristi LaMontagne

God made us and He intends for us to be good stewards, or care takers, of God’s money. Fortunately there are many modern tools that can help us do that with relative ease. Are you fearful or do you get excited when computers are mentioned? Today, there are many user friendly software programs to assist anyone interested in tracking their finances on a computer. However, discipline and accuracy are vital to properly record and safeguard information entered. With computer software programs you must faithfully enter all transactions. As a benefit, you should receive easy to read reports, and detailed summaries for your income and expenses, broken-out by the major categories you pre-select. For instance, you can customize most reports to match your spending and biblical giving plan categories.

Easily available on the market today are many popular financial software packages like Intuit’s Quicken and Quick Book Pro, which are well designed for small business and personal use. Also, available on the market are software packages that deal with money matters by Crown Financial Ministries. Larry Burkett’s team originally developed these software packages, which are reasonably priced. Then, of course, there is Microsoft offering their Microsoft Money which is generally included in their Microsoft Office software package.

Financial software programs offer great assistance to anyone willing to work with computers to take control of their cash flow and become debt free.

One big caution, if you (or your spouse – if married) do not totally understand computerized records; start with the easy-to-use Manual Cash Flow Control System, included in Financial Freedom in 7 Weeks Plus. Once you have this process down cold, then you’re ready to move on to computer-based software, if desired.

Analyzing My Monthly Cash Flow

Analyzing My Monthly Cash Flow

by Kristi LaMontagne

Failure to use a flexible spending plan is one of the leading causes for financial woes. Many people lack a clear understanding of basic accounting principles; therefore, learning a few of these simple principles can help you better manage your money (Prov.27: 23). Cash flow analysis on a monthly basis shows you whether you are generating enough cash to meet your financial obligations and how your expenditures (outflow) relate to the money coming in (inflow). A monthly cash flow analysis helps you determine where you lack capital or have a surplus. This information can then be compared monthly to the records that you have accumulated in the past months. Putting God in the center of developing your flexible spending plan will give you an assurance and peace that you are moving toward a well balanced cash flow.

Financial Freedom in 7 Weeks Plus is a Bible-based workbook that will guide singles, couples and families step-by-step through all the basics of managing money. Chapters 4 – 7 focus on the Flexible Spending Plan concept and Cash Flow Management.