How to work out your cash flow

By You and Money

You cash flow is the amount of money you have left after you have made your purchases. To keep your cash flow healthy and in the positive, make sure you know what money is coming in and what money is going out.

  • Money coming in is your pocket money, birthday money or money earned from part time jobs
  • Money going out is the money you spend on food, clothes, books etc

To work out your cash flow use this simple formula.

money coming in – money coming out = cash flow

If your cash flow is a negative amount you might need to

a) earn more money or b) spend less money

2 Responses to How to work out your cash flow

  1. Shaun says:

    To manage our family budget we have set up a number of BankVic accounts. Our primary account collects all of our income, a weekly amount is transferred out of the Income account to our Direct Debit/Bills account. We also have a children’s education funds and saving accounts. What is left in our income account we know we can spend or put towards extra savings. This method is like using tins, money is saved each week into each tin and we are left with money we know we can spend, we always have saved money in our Bill account because it is saved each week.

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