Cash Management and Financial Planning

What is the First Step in Financial Planning?

Understand your current financial situation; particularly cash flow. Cash management is a key part of a financial plan because cash is the primary asset used to pay obligations on a regular basis.  In today’s market and interest rate environment, maintaining cash balances while also earning a return on idle cash are top concerns.  At WFA, our Certified Financial Planners^TM focus on three main ideas: (1) building a healthy emergency fund, (2) knowing your budget and expenses, and (3) understanding when to “save” and when to “invest”. Check out some more helpful information provided by Charles Schwab below.

• Emergency fund – https://www.schwabmoneywise.com/essentials/saving-for-an-emergency
• Budgeting – https://www.schwabmoneywise.com/essentials/budgeting
• Saving vs investing – https://www.schwab.com/resource-center/insights/content/youre-saving-should-you-be-investing-too