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Schlipman & Short’s Guide: Increase Cash Flow with an Updated Budget

11:13 pm
July 23, 2024

Financial freedom—it’s a term often associated with images of extreme budgeting and subsisting on ramen. But what if there was a simpler way? A method to enhance cash flow and build wealth without feeling restricted?

Financial freedom isn’t about deprivation; it’s about empowerment and flexibility to pursue passions like traveling, starting a business, or enjoying financial security.

Mark Schlipman and Steve Short’s Amazon best-selling book, “The Simple Road Toward Financial Freedom,” introduces a balanced approach through their 50/30/20 plan. This budgeting strategy prioritizes essentials while allowing room for pleasures. The foreward was written by Will Ferrell.

Here’s how it works:

50% Needs: This covers essential expenses like housing, food, transportation, utilities, and minimum debt payments.
20% Savings: This is your wealth-building zone. Allocate this amount towards savings goals like retirement, a down payment on a house, or an emergency fund.
30% Wants: This is where the fun comes in! Use this portion for entertainment, hobbies, dining out, vacations, or that new gadget you’ve been eyeing.

The beauty of this plan is how it prioritizes savings before wants. Many times, financial experts will propose a 50/30/20 model, which prioritizes wants before savings. The key is to be intentional with your spending and ensure every dollar works towards your financial goals.

Updating Your Budget for Increased Cash Flow

The first step to building a healthy budget is tracking income and expenses. Plenty of free budgeting apps and tools are available to help you get started. Once you have a clear picture of where your money is going, you can identify areas for improvement.

Here are some tips for updating your budget annually:

Review Subscriptions: We all have streaming services, gym memberships, and magazine subscriptions. Evaluate which ones you genuinely use and consider canceling the rest.
Renegotiate Bills: Don’t hesitate to call your cable or internet provider and negotiate a better rate. You might be surprised at what you can save.
Change in Lifestyle: Reevaluate your spending and saving habits as your lifestyle and circumstances change throughout the years. If you’re making more money, save more money. If you’re making less money, consider areas to cut back.
Cook More at Home: Eating out can be a significant budget drain. Try planning meals for the week and cooking at home more often.
The Power of “No”: It’s okay to say no to impulse purchases. Before you buy a non-essential item, take 24 hours to think about it.

While most people do not follow a budget, or when they do they “set it and forget it” as Steve Short and Mark Schilpman have seen. “The Simple Road Toward Financial Freedom” urges the newer generations to consider the benefits of financial freedom through structure and honest budget evaluation.

Small changes add up! By implementing these strategies and sticking to your updated budget, you can free up more cash flow and make real progress toward your financial goals.

Through “The Simple Road Toward Financial Freedom,” Mark Schlipman and Steve Short advocate that financial freedom is about choice, not sacrifice. They encourage creating a budget that supports both saving and enjoying life. Their philosophy: simplicity in financial planning makes achieving significant goals attainable without needing a million dollars to accumulate a million dollars.

For those ready to simplify their financial journey, “The Simple Road Toward Financial Freedom” the book can be found at Amazon, Barnes & Noble, WalMart or can be purchased with a promotional rate at: https://bit.ly/3VN7zMD