#004 - Understanding your Cash Flow

Episode Summary: In this insightful episode of the "Work Optional" podcast, Rachael and Matt dive deep into the crucial role of understanding your cash flow to achieve a work-optional lifestyle. They discuss the basics of cash flow, common misconceptions with budgeting, how to track expenses, and the reverse budgeting strategy.

Key Points Discussed:

1. Cash flow basics:
   • The importance of using a percentage of income today to save for future goals
2. Budgeting misconceptions:
   • Budgeting is the process of understanding where your money is going
   • It does not have to be restrictive.
3. Tracking expenses:
   • Look at things on a high level: % of savings vs % of spending.
   • Spend a few month ...