Cash Flow Management


Building your personal wealth starts with managing your income and expenditure.

It is human nature to manage what we measure: that is why every successful business monitors their cash inflow and outflow on a regular basis.

The secret to personal wealth is no different. Managing your cash flow helps you be more in control of your finances, so you can define the lifestyle you want and achieve the dreams that matter to youby design and not by luck.

How do you know if your cash flow is healthy?
Start here with these three questions.


Is your cash flow positive or negative?

A positive cash flow, where you earn more than you spend, is the basis of healthy finances. With surplus cash, you gain access to investment options for growing your wealth further, even if it is just RM100 a month.

However, with a negative cash flow, you run the risk of depleting your savings and possibly going into debt over time. If you find yourself spending more than you earn every month, that is a warning to re-evaluate your financial habits.

Whether your cash flow is positive or negative, financial planners provide professional insight to your financial health, and work with you to gain better control of your income streams and expenses.

Is your money working for you?

Ultimately, money is a tool to help you achieve your goals. And as any savvy businessman would say, the easiest way to make more money is by using the money we already have.

Unless you win the lottery, you would be building your wealth gradually over time. As your monthly savings accumulate and grow, it is vital to ensure your money maintains its worth over time, or ideally, appreciates in value.

How you choose to invest your money will depend on your risk appetite and your investment goals. Working with a financial planner can help bring clarity to your risk profile and equip you with the mindset to invest with more confidence.

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Do you know your behaviour patterns towards spending and investing?

We often attach emotional meaning to our money which can influence the way we choose to spend. But in order to manage your cash flow effectively, it is important to understand your spending habits.

A useful exercise for bringing awareness to your cash flow is to prepare a monthly budget spreadsheet. By tracking your expense areas, this exercise helps you calculate your average cost of living, which is an important benchmark for determining both short-term saving goals (such as a 'rainy-day' emergency fund) and longer-term goals such as a retirement plan.

Financial planners use tools such as these to help you visualise and set realistic financial goals tailored to your unique life plan, so you can spend and invest wisely for the future you wish to have.

Bonus: How well do you understand the Cashflow Quadrant?

Developed by Robert Kiyosaki, author of Rich Dad Poor Dad, this model helps you visualise the four types of income streams.

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Experience what it's like to
manage your own cash flow.


Play CASHFLOW® Classic online!

CASHFLOW Classic is the free online investing game that makes learning to invest fun.


Plan well for your future with professional financial guidance.