May 31st, 2012 
admin 
You might have noticed that we devote much of our time and attention to the topic of cash flow. It’s the lead subject of our e-booklet, a key component of our measurement tool, and is regularly featured in our blog articles. We do this in large part because cash flow tends to be neglected in most personal finance plans and resources. Instead, the focus is usually on wealth building…increasing your net worth. Read more »
May 31st, 2012 admin 
I’ve always admired Albert Einstein. After all, he was a fairly intelligent fellow. In science, he changed our understanding of light and of gravity, helped prove the existence of molecules, and explained the nature of space and time. In politics, he was influential as a promoter of peace and freedom. All in all, a very strong resume’. But for our purposes, his most impressive contribution was in the field of finance.
Einstein was reportedly asked what he thought the most powerful force in the universe was, and he replied, “Compound interest.” Another Einstein quote on this topic: “Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t, pays it.” (1) Read more »
May 31st, 2012 admin 
In an earlier article I quoted James Taylor, but since the topic here is youth let’s borrow a line from James’s younger brother Livingston: “I could barely hobble when I needed to run.” What’s the connection? Well, when it comes to their finances, hobbling is what most of our children find themselves doing as they enter adulthood, mostly due to high levels of debt. But it doesn’t have to be that way. It’s still possible for them to move through the dangerous Debt Accumulation stage of the Financial Life Cycle quickly – if they run a smarter race. Read more »
April 19th, 2012 admin Record 19 individuals and organizations honored for their dedication and commitment to promoting financial literacy education 
worldwide
South Portland, ME and Orlando, Fla. – April 18, 2012 – The Institute for Financial Literacy (www.FinancialLit.org), a nonprofit 501(c)(3) tax exempt organization whose mission is to promote effective financial education and counseling, is pleased to announce the winners of the 2012 Excellence in Financial Literacy Education (EIFLE) Awards, which were presented today during a ceremony at the Annual Conference on Financial Education in Orlando, Florida. First introduced six years ago, the EIFLE Awards were created to acknowledge innovation, dedication and the commitment of individuals and organizations that support financial literacy education worldwide.
The Institute received a record number of nominations this year and awarded an unprecedented 19 EIFLE Awards to recipients in the following categories: Read more »
March 27th, 2012 admin 
There is one month left in the Cashflownavigator Tax Season Sweepstakes! To be eligible to win one of our three great prizes, please make sure you “Like” us on Facebook and are also a registered member of Cashflownavigator.
In This Issue:
CASHFLOWNAVIGATOR BLOG: Wealth and Cash Flow Lessons from Donald Trump. Are you Ready to Be an Apprentice?
SPOTLIGHT ON: The 8020 Worksheet
CASHFLOWNAVIGATOR BLOG: Swimming Against the Tide of Mortgage Interest? Turn the Tide with Prepayment Options.
GUEST BLOG: The Mindset of a Millionaire vs. the Average Joe
By Dave at Smart Passive Cash Flow Read more »
March 15th, 2012 admin 
The 8020 Worksheet™ is a simple automated tool that allows you to measure and manage your key financial information in one place. It includes your net worth, which is a measure of your wealth, and your cash flow, which is a measure of your financial independence.
The 8020 Worksheet™ has three main components:
Why is Wage and Salary income listed last? Simple: If your goal is to become financially independent, then you won’t have to rely on your salary (or your spouse’s) to enjoy a positive monthly cash flow. Instead, you can rely on positive cash flow from your other assets – captured in the top section of the 8020 Worksheet™.
February 27th, 2012 admin I’m a big fan of the “80/20 Rule”. Also known as Pareto’s Principle, it states that 80% of an outcome is usually determined by only 20% of the inputs. It holds true for a surprising number and variety of things. Read More
How Our Approach is Different: We Add Cash Flow
Most financial planning resources focus on net worth – your assets and liabilities – to measure your finances and define goals. In fact, net worth is a critical measure. But we add a measure for financial independence to the mix. After all, that’s your ultimate goal, right? Read More
In his song “Golden Moments,” James Taylor said: “All it really needed was the proper point of view”. I doubt he had tax preparation in mind when he wrote it. But if you look at the tax preparation process from a different perspective, it could take on a whole new meaning. Instead of being a dreaded annual task with a narrow purpose, it could be the start of a bigger financial management opportunity. Read More
We thought the following article from the Surviving Economic Collapse blog site included some creative ideas for generating cash flow. Maybe one idea could lead to a steady source of cash flow for you. And even if none of the six appeals to you, perhaps you can think of other assets to turn into income-producers.
Visit our Facebook page to read this and other interesting articles!
January 20th, 2012 admin 
I think we can call this “The Goldilocks principle of housing”. A few articles back, I wrote about misadventures during an earlier housing bubble, when we bought a house much larger than our family needed. With a super-sized mortgage, high property taxes and maintenance costs, it put a real strain on our monthly cash flow. We had trouble building equity and, just as important, that single high-cost asset kept us from paying down other debts or making other, better investments. We were on the precipice, so to avoid falling into the money pit we decided to sell the house and downsize to a smaller one.
A good decision, right? Absolutely…at least for the first few years. Immediately after downsizing we went from barely break-even to a solidly positive monthly cash flow. How nice it was to have that cushion! But we also had some growing children. We thought: Wouldn’t it be nice if we extended the house a bit further into the back yard? That sure would give us all a lot more living space. $100,000 later, that thought became a reality. Read more »
January 11th, 2012 admin 
Most financial planning resources focus on net worth – your assets and liabilities – to measure your finances and define goals. In fact, net worth is a critical measure. But we add a measure for financial independence to the mix. After all, that’s your ultimate goal, right? You can have substantial net worth but if it doesn’t generate a sufficient monthly income stream to cover your living expenses (and debt, if you have any) then you aren’t financially independent. That is, you’ll have to supplement the income from your net worth assets with salary income. Read more »
January 9th, 2012 admin 
In his song “Golden Moments,” James Taylor said: “All it really needed was the proper point of view”. I doubt he had tax preparation in mind when he wrote it. But if you look at the tax preparation process from a different perspective, it could take on a whole new meaning. Instead of being a dreaded annual task with a narrow purpose, it could be the start of a bigger financial management opportunity.
Yes, gathering all the documents and receipts is still a chore. But think about it – you’re taking time to collect, organize and update much of your financial information. Why should that be a once-a-year task to be done and then forgotten for 12 months? Instead, look at it as the starting point for developing a long-term financial plan for your household. Read more »
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Cashflownavigator™ founder Keith Whelan has worked in financial services for 30 years and received an MBA from Columbia University. Keith is also a staff writer for Wise Bread, and contributes to Laura Adams' MoneyGirl blogs and podcasts.
