The Cash Tank
A mindset for money requires you to be in control, especially when we talk about cash outflow.
A job or other source of income provides cash flow into your bank account. However, will that be enough when you open the valve for cash to flow out? Will you empty the tank?
Is Your Tank Too Small?
Who or what is to blame, if, at the end of the month, your cash tank is empty?
Is your source of income, your cash flow incoming, to blame for the empty tank?
Were you in control of the valve for draining the tank?
How Do You Know What Tank Size to Get?
How do you define how much to let out of your cash tank, each month? Do you have a written plan, based on your tank size?
Are you in control? Is there someone else to blame? Does that make it fill back up if you blame someone else for not closing the valve?
You Can Be the Engineer
Engineers do studies to determine how big a cash tank you need. They study flows in pipelines.
You can engineer a budget to control the outflow valve based on the incoming flow and the holding tank size.
Feel Like a Hero
Imagine the ovation and the elation when you control the outflow valve to accumulate cash in the tank!
Develop a plan to accumulate cash in the tank so it will send the cash overflow into a reserve cash tank for the times when the incoming cash flow cannot keep up with the necessary cash outflow or cash leaks (Emergencies? —Call maintenance!).
Accumulation of cash can lead to many reserve tanks, and you will become even more of a Hero!
Remember
How long you can get the necessary cash flow over your retirement depends on how many reserve tanks you can accumulate.