Welcome to our Cash Flow Calculator! It’s an excellent tool for determining your net cash flow based on your monthly income and expenses. For more information on getting your cash flow in the positive, see our informative article below the calculator. Thanks!
Cash Flow Positive – Are You Making More than You’re Spending?
When you’re first designing your spending plan, it’s important to keep your income in mind. But how do you know if you’re making more than you’re spending?
Thankfully, our Cash Flow Calculator does the trick and lets you know whether you’re spending too much for your income.
Here’s how you can use the Cash Flow Calculator to your advantage . . . .
How to Use the Cash Flow Calculator
Start by entering your regular income. This includes all money you expect to receive every month, such as wages, salaries, and tips. You’ll also want to include other income sources, such as investment income, business income, and more.
Next, you’ll enter in your monthly expenses. Expand out all expense sections and try to be as accurate as possible. Pull up checking account statements and try to base your estimates on historical spending.
After you’re done, the results will show you your monthly and annual cash flow. Are you making more than you’re spending? If so, you’ll have a positive net cash flow. If not, you’ll see how much you’re overspending.
How to Cut Expenses
Let’s say you find out you’re overspending. One way to solve this problem is by cutting expenses, the other is to raise your income.
To cut expenses, start by looking at some major costs such as housing costs. Is the total cost of your principal, interest, taxes, and insurance lower than 28 percent of your gross monthly income? If so, it might be worth considering moving down in house.
Be sure to consider lowering food and entertainment costs too. Eating out is expensive, and can be curbed.
How about recurring expenses such as leased vehicles or smartphone bills? Even small, regular payments can add up to be quite a bit of money over time.
Raise Your Income
Another way to fix your cash flow problem is to raise your income. Here are a couple of tactics that might work for you:
- Start a side business – In addition to your day job, you can start a side business that brings in some extra money. Start small, and grow your business over time. You might get to the point where your side business becomes your primary job!
- Ask for a raise – If you’ve been working in your job for several years and have improved the company, it’s time to ask for a raise. Highlight some of the ways your work has brought more money into the company. Your boss is sure to consider giving you a raise!
- Find a new job entirely – If you’re in a dead-end job, consider looking for another job. Don’t quit your current job until you find another one – you wouldn’t want to become unemployed and worsen your situation!
Those are the main ways you can raise your income. Thousands of possibilities exist under those options. Sit down and write out a few ways you can bring in extra money, and act on them! You don’t know what will work until you try.
Why not try to cut expenses and raise your income at the same time? You’ll probably find you can make progress with both strategies.
However, most people find that they are really good at making money but horrible at proper spending, or visa versa. In other words, they have one side of the cash flow equation under control, but not the other.
Ask your spouse or close friend where they think you could improve. They’ll likely know.
Also, be sure to talk with a Certified Financial Planner™ to discover more ways to save money and build a worthwhile career.
Before you know it, you’ll be cash flow positive and have your whole budget under control!
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