Personal Cash Flow Statement Summary
How does a personal cash flow statement help you organize your finances?
The best part of a personal cash flow statement is that it really helps you to see where money is being spent that doesn’t need to be. It helps you to discover which areas need more attention and which may need less. I am a very visual learning so I prefer to see information laid out like the cash flow statement does. My biggest goal right now is to set up an emergency cash fund so a budget sheet helps me to determine how much needs to be saved in case of an emergency. What was the most interesting thing you learned about completing this worksheet?
The most interesting thing that I learned from this worksheet was that a lot of spare income is being spent on entertainment and eating out whereas it can be better utilized put towards a savings. I had no information to put into the savings and investments section. I found this very irritating because I really want to plan for the future. It helped me to realize that much more of my focus should be put towards these areas. I own my own business so it is difficult for me to get a 401k. Therefore, I would like to spend less in entertainment and instead put it towards something like a Roth IRA. This worksheet really helped to see it all laid out and helped me to realize that there are very important areas of my finance that need more attention. Did this worksheet provide you with any ideas about how you may want to change your budget?
Yes, it definitely did. I want to put more focus towards the investments and savings. I want to spend less money on entertainment and traveling and put it towards long term investments. I really enjoyed this worksheet and I plan on tweaking it to adapt to my business as well. I think this sort of worksheet would be very useful for tax and budget information for my business. It was a very...