How To Get An Accurate Picture Of Your Cash Flow

How can I get an accurate picture of my cash flow?

Cash flow is what comes in each month and what goes out each month. It is really a simplistic definition. To calculate your cash flow, you look at your income, and you may look at your spouse's income. Look at all of the sources of income you might have each month, through your earned income, through your work, and maybe social security or your investment produced income. Take a look at that total on a monthly basis and write that number down. Then you have where all that money is going - "What is my mortgage? What are my utility bills, my auto bills, my insurance bills?" Come up with all of those categories, where you might spend money - write down how much you spend on the cell-phone bill each month - and total that figure. Then you have a pretty good picture of how much is coming in and how much is going out. That is your cash flow.