If a client's cash flow analysis results in a negative number, what should be the next step?

When a client's cash flow analysis results in a negative number, it indicates that their expenses exceed their income. In this situation, reviewing expense categories for potential reductions is a crucial next step. This evaluation allows the client to identify areas where they can cut back on spending, which will help them balance their cash flow and possibly create a positive financial situation.

Reducing expenses can often be a more immediate and manageable approach than trying to increase income or making decisions about investments. By focusing on the areas of discretionary and non-essential spending, the client can quickly see improvements in their cash flow and avoid future financial strain. Once expenses are reviewed and adjusted, then discussions about increasing income or enhancing savings can follow more productively.