Cash Flow is King
One of the most overlooked areas in financial planning—especially for high-earning professionals in tech—is cash flow: how much money is coming in and how much is going out.
And I get it. If you’re a HENRY (High Earner, Not Rich Yet), budgeting may feel unnecessary. You might have so much coming in each month that you don’t think it matters what’s going out.
But understanding your cash flow is one of the most important parts of your financial life. It impacts everything—your savings, taxes, investments, and even long-term goals.
Why Cash Flow Matters
When people hear “cash flow,” they often think “budgeting.” But budgeting is just one piece of the puzzle. Real cash flow planning means understanding:
Your total income, including salary, bonuses, and equity compensation
Where and how much you’re saving
What you’re spending (broadly, not line-by-line)
How much tax you’re paying—and whether it’s more than necessary
Once we have that big picture, we can start asking better questions:
Is your money going where it should?
Are you building wealth efficiently?
Are you holding too much cash or missing tax savings?
For many of my clients, the answer is yes. They’re saving money—but not in the right places. Often, they’re letting cash pile up in checking accounts instead of putting it to work. And they’re missing opportunities to reduce their tax bill through smarter saving and investing decisions. Small tweaks here can have a huge impact—especially in your 20s, 30s, or 40s.
Better Cash Flow = Better Projections
Another big reason to understand your cash flow? It makes your long-term financial projections way more accurate.
Financial planning is really just future cash flow planning. If we don’t know what your spending looks like now, we’ll be flying blind when we try to estimate what your future lifestyle will cost. Tracking your current numbers makes future planning much more realistic and actionable.
How to Track Your Cash Flow
There’s no perfect way to do this, but there are a few tools I recommend:
Monarch Money – This is my personal favorite. It’s user-friendly, ad-free, and does a great job tracking income and expenses. There’s a cost, but for many, it’s worth it.
Spreadsheets – Great for customization, but more time-consuming and manual unless you’re an Excel wizard.
Quick + Dirty Method – Not ready for a full system? Compare your bank balances month-to-month. If your balances are growing and you’re not actively investing the extra, you’re running a surplus. If they’re shrinking, you’re running a deficit. It’s not precise, but it gives you a rough idea.
Income and Taxes
For tracking income, always go to the source: your pay stubs. Understand your gross income, net income, and what’s being withheld.
For taxes, there’s no shortcut like there is with spending. This is where a tax projection comes in. If you’re not sure how to run one, I’ve got a video walking through the basics on my YouTube channel.
Final Thoughts: Cash Flow Is King
Cash flow might not be flashy or exciting, but it is foundational. It touches every part of your financial plan, from taxes to savings to how much you can comfortably spend.
If you’re not paying attention to your cash flow, you’re missing a huge opportunity to improve your financial health and make smarter decisions.
Take the time to understand what’s coming in, what’s going out, and where your money could be working harder. It’s one of the most powerful steps you can take toward building your Authentic Life.