Get out of Debt SIX Video Course (video 1 of 6) : Understanding Your Cash Flow
This video is the first in a series designed to help viewers effectively manage their finances and work towards debt freedom. It emphasizes understanding cash flow, which is fundamental to achieving financial stability. The video outlines a straightforward but essential approach: tracking all income and expenses using a basic Google spreadsheet, avoiding complicated financial software. Viewers are advised to gather financial statements for the past three months to account for typical and atypical spending, ensuring a comprehensive understanding of their financial situation.
The presenter demonstrates how to use the spreadsheet, emphasizing the importance of entering accurate, real data rather than estimates. This process involves documenting every transaction from bank statements and credit card statements, which helps identify spending habits and areas where expenses can be cut. The goal of the video is to help viewers see the flow of money in and out of their accounts, identify whether they are living within their means, and prepare them for the next steps in the debt reduction process.
By the end of the video, viewers should have a clear picture of their financial health, indicated by whether they spend more than they earn or have surplus funds. The video series promises to guide viewers through steps to control their finances and accelerate their journey out of debt.
