Cashflow and Compounding
Using a financial statement to set goals
If you are expecting some lifestyle changes
4. If you are expecting some lifestyle changes in the coming years:
- make an estimate of lifestyle costs in, say, 3 years, taking into account inflation, investment returns, and sources of cashflow
- make allowances for cashflow reductions through periods of change, if this change is related to work or business
- research your options to fund your retirement, with consideration of associated tax implications, if this change is related to retirement
- communicate to your team the impending change, and employ further team members if appropriate (see the Building your team module).
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