Get to know your cash flow
Your budget is the foundation of your financial plan. BUt your cash flow is how the money moves in and out from week to week and month to month. I started using a handy little spread sheet that helps me optimize my cash flow. It’s not something you can check once a year or once a month. You really need to watch it at least once a week – and plan ahead – it’ll take the stress out of knowing wether or not you can make your payments and meet your obligations.
This is my excel sample. By no means is it scientific or accurate. It’s just an example of a basic cash flow sheet for a family with one paycheque, some debt, some insurance, some groceries, some fuel, a car payment – no frills. By carrying over your opening balance every week – adding in your revenue and substracting your expenses you can know ahead of time what you’ll need all month long and when and how much you’ll have to carry forward to next month.
I find it helps. Feel free to customize your own. Excel is a wonderful tool for tracking and projecting.