Ready, Set, Invest.

Investment is timeless and it’s never too late or too early to get started. Nevertheless, as a beginner in the field of investment it can be hard to navigate in a world that never sleeps, where numbers and graphs are moving fast and where new terms and foreign concepts frequently emerge. It’s a world in which you easily loose track of the large amount of information and where the countless possibilities and risks easily get neglected.

Why is it so important to monitor cash flow?

It’s not because you need to cut expenditure wherever possible and turn into a complete scrooge. It is simply because if you don’t monitor where your cash flow is going you will simply just adjust your expenditure in line with your income. That is, if you end up earning 20% more next year you will find you’ll also end up spending 20% more – although it isn’t obvious at the time. This will continue until you (eventually) gain control. I’ve seen couples earning very large incomes and spending 100% of it (sometimes even more – going into debt) simply because they have never got into the habit of monitoring cash flow. Therefore, if you want to make the most of your financial opportunities, get into the habit as soon as you start working.