How does a personal cash flow statement help you organize your finances?
A personal cash flow statement gives you the ability to separate your finances in diverse groups so you can receive a idea of where certain parts of your income is going, I enjoy the ability to see details about my finances. Like when you go shopping the cashier gives a receipt, this allows you to see how many items you purchased. Spending plays a large part in your cash flow statement as well; if we do not calculate what we spend all of our calculations left in our bank account would be inaccurate. To see how much money I am spending in a certain time frame, allows me to create new restrictions for myself. Therefore, I can budget efficiently, without this ability I would not learn anything from my financial mistakes. When the holidays come many individuals take the money they have saved through the year, so they can get the appropriate gifts for their love ones or even their selves. Teaching yourself how to have self control can benefit you. The ability to save does not only allow you to purchase nice gifts, but also helps save you plenty of money in the end. We learn from experiences, so is it any different when it comes to our “money”? A cash flow statement should not be completed every year, but when income is received. You need to be able separate expenses, so you can see what you have left over to save. You should never wait for the last minute to save, a cash flow sheet is not to discourage you, but encourage you of being wise when spending.
What was the most interesting thing you learned about completing this worksheet?
When completing this sheet I was a little worried about the guilt I would feel about my spending habits. This sheet was a useful tool because it allowed me to open my eyes about where my money is going and where it should be going. I want to be able to add more money to my savings as much as possible throughout...