Most sample cash flow statement tools are created for businesses to better manage the flow of money coming in through sales revenue, and cash going out in expenditures. So why don't we do the same thing when manaing our personal finances?
How often have you been surprised to learn that a bill is due before you get paid? This happens all the time, even for people who live according to a monthly budget.
How that this be, you ask? The "timing" of when you receive your paychecks must be accounted for and compared to the timing of when your various bills are due. Using our one-of-a-kind sample cash flow statement tool you can easily manage cash flow.
It's simply not good enough to complete a personal financial statement. You need to take it a step further and manage your cash flow so that your bills are never late and you have money available to provide for the basic needs of your household.
Upon downloading the sample cash flow statement template, use the information you've already collected from the prior step and begin plotting the amount of income and expenditures for the upcoming month. You will be in effect, "spending it all on paper" before ever spending a single dollar.
If you completed the personal financial statement in full, the due dates are already known - simply use those dates to enter the date that each payment is to be made according to your available cash. This is called managing your cash flow!
As you begin to direct your money with a clear purpose, not just once a month, but every single day - you'll begin to feel more confidence in your financial life. Calculate cash flow regularly to ensure your remain focused on your financial priorities.
Also, don't be surprised when as a result of your daily diligence for money management you begin to notice that you end up spending less money overall. This money should be applied toward paying down your debt even more rapidly.
Some principles are simply timeless. In 1922, a well known author wrote the following in regards to Prosperity:
I Am - ?
I am your best freind in time of need.
I can do for you what those who love you most are powerless to do without my aid.
I am the oil that smooths the troubled waters of life. I straighten out difficulties and remove obstacles that will yield to nothing else.
I am a supporter of faith, a spur to ambition, a tonic to aspiration, an invaluable aid to people who are stuggling to make their dreams come true.
I give a man a fine sense of independence, a feeling of security in regard to the future, which increases his strength and ability and enables him to work with more vigor and spontaneity.
I am a stepping-stone to better things; a hope builder; an enemy of discouragement, because I take away one of the greatest causes of worry, anxiety, and fear.
I increase self-respect and self confidence, and give a feeling of comfort and assurance that nothing else can give.
I open the door to many opportunities for self-development and to social and business advancement.
I increase your importance in the world and your power to do good.
I am a shock absorber for the jolts of life, a buffer between you and the rough knocks of the world.
I am one of the most reliable aids in the battle of life, the struggle for independence; ever ready to help you in an emergency - sickness in your family, accident or loss, a crisis in your business - whatever it may be.
I AM - A LITTLE READY CASH |
Yes, having access to a little ready cash can make all the difference between financial success and a life of financial difficulty. Adding the above excerpt to your cash flow notes will serve you well, well into the future.
Our sample cash flow statement template is the perfect tool to ensure that you always have the money you need, when you need it.
Once you have completed your statement of cash flows for the month, use it in partnership with your primary checking account register. If you refer to these two tools daily, you will notice that they will fluxuate in concert with each other.
The difference between the tool tools is that the checkbook register will show you what is available today, whereas the sample cash flow statement template allows you to see the timing for both future income and expenditures.
When we talk about "Getting Specific" and "Being In Control" - this tool definitely assists you in taking ownership of your financial responsibilities.
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
