What is Cash Flow Planning?

January 23, 2020, by Sara McPherson

Written by: Michael Mims, Managing Director, Private banking

Cash Flow Planning is basically a strategic plan to review anticipated revenues / income and expenses / cash outflows over a defined period of time. Cash Flow Planning can be instrumental in developing a financial plan or family budget. For many clients, this will involve reviewing their anticipated income stream(s) vs. recurring expenses and/or anticipated expenditures such as a new house, vacation home, college expenses, vehicles, investment in businesses, retirement savings, etc.  For other clients this may be evaluating investment options and anticipated returns compared to their cash outflow needs in future months / years.    Finally, an annual review of cash flow needs is important to assist clients in staying on course with a plan as well as making adjustments for life or family changes.