It's been an interesting week for the South African Economy. It's more important than ever to take control of your finances and build a better financial future with economic turmoil always around the corner.
This is one of our main reasons for building this tool and the Fincheck platform - to help South Africans be better prepared with their finances.
We've seen a lot of people sign up over the past week to enjoy the benefit of a tool that can help them make better finance decisions!
Why does it matter? Well, because those decisions are the foundation for a better financial future for each of us.
In this post, we're talking about FEATURE 4 listed below. We'll start linking back to each article (as we post it) in the list below so you can easily navigate to all the features:
- Fincheck releases MyFincheck Finance Tool
- FEATURE 1 Bank Level Security Assurance & Notifications
- FEATURE 2 Your Personal Financial Dashboard Overview
- FEATURE 3 Understanding your income, expense & expense ratio
- FEATURE 4 See your Cash Flow with the Transactions Window (Current post)
- FEATURE 5 Save towards a better financial future with your own Savings Window
- FEATURE 6 Your Credit Window will help you keep track of credit card spending
- FEATURE 7 Take control of debt with your FREE Credit Score & Loan Account Window
The importance of your cash flow management
Seeing your cash flow at work will help you directly make better financial decisions the next day. Better cash flow management means you have money when you need it.
Why is this an important feature to have?
To do the above, you need a platform that is easily accessible and presents your transactional information in a way that helps you categorise where your money is going. This is why we built in the Transactions tab - it helps you see where your money is going.
How to use the Transactions Window for better cash flow
The best method to turn your future financial decisions into better ones is to visit the Transactions tab regularly. Make sure the transactions are updating in the correct categories, and change the incorrect ones with our custom categorising tool.
This will help you see where your cash flow is going - especially those little transactions that escape your attention!
Cash flow and its relevance to income vs expenses
As we previously mentioned, your income will obviously be unique to the opportunities you have and create in your life. The most important part of that income is that you don't spend it all!
You need to get into the habit of spending less than you're earning. This means your "expenses" on your financial tool will ideally be about 25% less than your income. The Transactions tab will help you keep track of where all the income has gone.
It's coming in, and going out - and therefore it's called cash flow! When your expense ratio seems too high, your Transaction tab will show you where your money went, and reveal whether you have a positive or negative cash flow situation. Quite simply, this means:
You are spending more than you're earning = Negative Cash Flow You are spending less than you're earning = Positive Cash Flow
Does this mean you need to live a terrible life?
Not at all! It simply means that whether you're earning R5,000 a month or R50,000 - you can save more money than you realise! As we mentioned in the previous article for Feature 3, there are certain rules that will help you save money.
Let's look at the 3 Golden Rules again we mentioned in the previous article on income and expenses:
- Spend less money than you're earning
- Or, stop spending more than you're earning :)
- Don't increase your spending when your income increases
Seeing your transactions in front of you will help you keep track of these rules in your life.
If you need any help with understanding more about this, you can contact the Fincheck team. We'll be happy to refer you to some resources to help you understand more about this.
Let's cheers to your better financial future!
We're so excited and happy to have you part of this awesome release! If you had fun reading this post, and would like to share it with a friend, please send them the link and encourage them to sign up.
If you haven't signed up for MyFincheck, you can do it here.
Remember to sign-up for post updates below - we'll keep you posted!