Positive Cash Flow

Having positive cash flow at the end of the month is the goal when creating a budget.  If you have determined that you have a surplus at the end of the month then you are in good shape.  Depending on the size of your surplus cash flow, I would recommend saving half and taking the other half and paying down credit card debt, any other revolving debt, and student loans.

Once you have eliminated all your revolving debt and student loans, I would recommend saving all of your surplus cash flow and contacting a financial planner to discuss some of the following items:

• Life insurance
• Investing in IRA's
• Living will - if you have children
• 529 plan for college education

At this time, you will also be able to set financial goals for:

• Having children
• Children's education
• Purchasing a home
• Retirement
• Purchasing a second home