Cash Flow is King

Cash flow is the life blood of any business. Without it the business will grind to a halt even if the profit and loss statement indicates it is a profitable business.
Similarly, an individual who buys an investment property may experience cash flow problems even if on an annual basis the numbers stack up, but rely on a substantial tax refund.

Our ability to enjoy life with our family and friends is governed by our health and our wealth.

Cash flow is the cornerstone of every financial strategy and advice we provide clients.

Griffin Financial Advisory specialises in assisting people create and maintain future cash flow from assets that are protected, tax effective and accessible.

Creating cash flow

Whether a person earns $50,000, $150,000, or $500,000 per annum, we find it is the choices people make that propels them towards financial security and wealth creation, or financial distress and living beyond their means. The key to creating wealth is using what we earn in a productive way. The key to maintaining wealth is to protect your ability to earn.

Your Earnings are allocated across the following:

  1. Necessities: Food, clothing, rent or mortgage repayments, electricity etc
  2. Lifestyle: Restaurants and Entertainment, holidays, cars etc
  3. Wealth (Savings or investments): Shares, Property, Income Protection Insurance and Life/TPD Insurance and other insurance, Superannuation etc

How much are you allocating from your earnings towards wealth creation and protection?

If you stopped work tomorrow, would the income from your investments allow you to continue to pay for necessities and have the lifestyle you would want?

Do you have a strategy that will propel you towards creating and maintaining your wealth and cash flow?

If you would like more information, please Contact Us.

Maintaining cash flow

Some people appear to have a sizeable amount of assets (property, shares etc) and we assume that they are rich. Often we find that people spend a high proportion of their income on lifestyle (clothes, holidays, cars), have borrowed excessively and have large interest bills to pay, or have made wrong investment choices and cannot live off the assets they have. While it is important to minimise taxation, you cannot live off a tax deduction.

Financial security and peace of mind comes from having Cash flow independent of work to support necessities and our lifestyle.

Cash flow comes from:

  • rental income (property),
  • dividends (shares),
  • interest (money in the bank)
  • business income/distributions and
  • capital gains (selling an asset).

Are you confident enough in your current financial strategy to obtain a second opinion?

If you would like more information, please Contact Us.

See our Budget Calculators & Tools.