Introduction: The Basics of Cash Flow

Let’s dive into the world of cash flow – a term that’s as straightforward as it sounds. It’s all about the movement of money in and out.

Cash flow isn’t just for businesses; you’ll often hear it when people talk about analyzing how much money a business gets and what’s left after spending. Guess what? You can apply this concept to your personal finances too! Think of your finances as a mini-business, and cash flow as the rhythm of your money dance.

In this section, we’re diving into your financial landscape. Get ready to answer three key questions:

1. Income Check: How much do you earn per month?

2. Spending Tally: What’s your monthly spending?

3. Remaining Funds: How much is left at the end of the month?

Download the personal Finance Budgeting Excel sheet above ^^

Exercise #2:

Step 1: Grab Your Resources

First things first, make sure you have the tools you need. Download the Excel worksheet we’ve prepared for you. Also, fetch your bank statement from last month.

Step 2: Time to Fill In

Now, open up that Excel sheet and start crunching some numbers. Take a look at your bank statement for the previous month. Fill in the Excel sheet to show how your income and expenses played out during that time.