Lashley Financial :: Managing Cash

Cash management is the understanding and analysis of what you earn, what is deducted (e.g. taxes), what you spend and what you save.

The purpose of investing is to improve our future circumstances or future lifestyle.

Your broker works for you – not for the insurance company.

Investing requires the trade-off of present income (consumption) for future income (consumption).

Maintaining your quality of life after the diagnosis of a critical illness and dealing with financial commitments can cause hardship for you and your families. Critical illness insurance can protect your family's future.

Choosing the right insurance company for you is one of the most critical steps in managing your insurable risks. It means asking all of the right questions and thoroughly investigating your options.

You will need 4 to 10 times the amount you paid for your house to enjoy a comfortable retirement.

Debt affords us the opportunity to benefit from things that we may not be able to purchase in the short term, such as a home.

Building net worth over a lifetime requires prudent planning and the implementation of sound strategies. Insurance is an important element of any sound financial plan.

The objective of investing is to receive a future flow of funds larger than the funds originally invested.

A home is one of the largest purchases most people make during their lifetime. Therefore, homeowners' insurance protection is critical and strongly recommended.

Credit, like a knife, is neither good nor bad – it depends on the use to which it is put.

Death is inevitable – and sooner or hopefully later, we are going to die. Before we do, we should take some actions to put our affairs in order.

Using a broker doesn't cost you more. Often it can cost you less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf.

There are three ways to manage money: Market timing, security selection, and asset allocation. The first two, in our view, involve too much luck and risk.

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Managing Cash

Cash management is the understanding and analysis of what you earn, what is deducted (e.g. taxes), what you spend and what you save. It is the foundation of managing your personal finances because, without creating savings opportunities, you are unlikely to have the financial resources to meet your personal goals.

Without a proper cash management plan, you are risking important life goals, such as retiring the when and the way you want. Cash management also balances your liquidity requirements with the ability to secure good returns on your short-term funds.

How you manage cash determines your create net worth. Your net worth is the difference between your total assets and your total liabilities. As a financial tool, it provides:

An excellent starting point as the baseline for your current financial situation
A guide to whether your personal goals are realistic and achievable – and the types and amount of activity that will be required to achieve your goals
A basis for assessing your progress as you implement the recommendations and as your circumstances change
An understanding whether you are building wealth – especially when inflation is taken into account.

Managing Cash

More than you want and less than you need