Cash management is important because you want to make sure your money is benefiting you. The best way to approach managing your funds is by developing a strategic system that focuses on accounting, analysis, allocation, and adjustment.

Accounting
* Create a list of your finances (bills, other financial obligations, etc.)

Analysis
* Study your finances and determine where you can decrease expenses
* Use available money to get ahead financially on mortgages, home equity loans, etc.

Allocation
* Prioritize necessities vs. desires and apply money where the need is greatest (necessity should prevail)

Adjustment
* Review and adjust according to your situation (income or expenses may increase, which requires a new financial plan)

This information is presented to educate the reader and does not constitute professional tax and legal advice.

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