The Cash Flow Forecaster™

I have used some version of The Cash Flow Forecaster™ during my entire life as an entrepreneur.  It is built it on an excel spreadsheet, to help project and manage expected income and expenses into the future.  Mine started off rather primitively and I quickly learned that it was only as good as the data I tracked.

Managing Unpredictable Income

Over the years I have adapted my Cash Flow Forecaster spreadsheets to manage the continuous fluctuations in income a commissioned sales professional experiences.  The beauty of The Cash Flow Forecaster is that I can see what effect of any change I make in income, expense, or owner draw today, will have on my cash-on-hand situation months into the future.

My Post-Bankruptcy Spreadsheet

As you already know if you have read my book A Real Estate Investor’s Guide to Profitability, I filed bankruptcy in April of 2009 during the worst of the great recession.  For me, the biggest challenge was creating a plan to come back better and stronger than ever.  I gave myself 10 years to increase my net worth from what was then less than zero, to $1,000,000.  My post-bankruptcy spreadsheet went out 120 months.

I Included Everything I Could Think Of

My Cash Flow Forecaster took into account everything I had learned over the previous eight years of being a real estate agent and broker.  I made a plan to leverage every single possible referral source, advantage, and opportunity I could think of no matter how small. I put it on paper and figured out how much money acting on each opportunity was going to cost me over time.  I figured out the minimum my wife and I had to take out of the business to live on, and I went to work.

It Worked For Me

Going on nine years later to early 2018, by building my brokerage business and investing in single and multi-family houses, my net worth exceeds $1,000,000 and my passive cash flow meets my minimum needs and more.  I have maxed out our IRA and HSA contributions every year for the last five years while continuing to invest in Real Estate Brands Ltd. I could not have done it without that spreadsheet.

Here is a Simple Example

I have shared a sample Cash Flow Forecaster™ spreadsheet.  Regardless of your affinity for numbers, this deceptively simple tool will help you get to where you want to be.  You must however, continuously make adjustments to each and every line item as your business reality requires.

The Cash Flow Forecaster™ Is About Looking Ahead

Keep in mind, The Cash Flow Forecaster™ is about looking ahead.  Your income statement is the tool for looking back and measuring your progress over time.  You need both if you want to build a truly self-managing real estate brokerage.

Message me.  Seriously, I want to help.

I feel so strongly about this that I am willing to consult with you one on one to build your own Cash Flow Forecaster™.  While the excel spreadsheet version works just fine, we will soon be rolling out a Google Spreadsheet tool complete with a comprehensive chart of accounts to get you started.

Care to Learn More?