Wallet Wizard Personal Finance
Managing Cash Flow
| Money |
Joseph Onesta
| Certified Financial Counselor Personal Finance Coach Former Director of Education for Consumer Credit Counseling Service of Los Angeles |
 | Managing your cash flow requires you to think about | |
| money in a different way. Money is a tool--a way of achieving something. Use it properly and you will achieve your goal. |
| You must have more coming in than you have going out. | |
| If you can't live on your income you need to decrease your expenses, increase your income or a combination of both. |
| The major components of cash flow are: |
| Income: How or when you get paid can be just | |
| as important as how much you are paid. I've got a free publication that talks about how income can affect the managemnt process. Get the PDF. |
| Expenses: There are three major kinds. There | |
| are fixed expenses, variable expenses and periodic expenses. |
| Fixed expenses remain the same every | |
| month such as rent or a car payment. Fixed expenses are difficult to change. | ||
| Variable expenses go up or down from | |
| month to month. Groceries, clothing or utilities are examples of Variable expenses. Variable expenses can often be easily changed but may require you to make some hard decision about what is more important. | ||
| Periodic expenses are predictable | |
| expenses that occur less frequently than once a month. You might pay your car insurance twice a year or you might renew your membership in a professional organization. |
| Buying decisions pay a key role in taking control of the | |
| way you spend money. Knowing the difference between your wants and your needs is essential. |
| Get a free Microsoft Excel Spreadsheet workbook to | |
| help you create your personal spending plan. Click Here. |
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| DIY Spending Plan: Create your own personal spending plan or budget. Free Excel Spreadsheet |
| Yahoo has a free budget calculator: How Much Am I Spending? |
