Need Help w/ Your Bills?

Been there (it sucks). That’s when you need help creating a Cash Flow Plan. What exactly is a Cash Flow Plan? A Cash Flow Plan is the greatest plan you’ll ever make and it will save your derriere from losing electricity.

Have you ever worried that swiping your card at the grocery store would make your check bounce for the monthly utility bills? 10.3 billion dollars are paid out every year in overdraft fees. Ouch! Let’s learn a little lesson from these over-drafters. Here are 2 things you can do if you need help overcoming your worries:

1) Keep track of your money

Know how much money you’ve got… and don’t spend more than you have! The best way to do this is to record the amount of your monthly income, then record all of your expenses:

Here’s a very basic example of recording your Monthly Income:

Cash Flow Diagram - Income

Cash Flow Diagram - Income

Here’s a very basic example of recording your Monthly Expenses:

Cash Flow Diagram - Expenses

Cash Flow Diagram - Expenses

2) Create a Cash Flow Plan

Now that you know you have $1,050 every month, you can distribute your income across the items you’ve listed as your monthly expenses.

To create a cash flow plan get out a lined sheet of paper, a #2 pencil, and create two columns. In the first column list the Item. In the second column create two blanks separated by a slash mark ( / ). To the left of the slash mark, put the Item expense, and to the right of the slash mark put the remaining amount of your income. Work down the column—your total income should decrease as your expenses are subtracted. If you need help, here’s an example:

Item, $ Expense – $ Amount Remaining

Income = $1,050

Rent, $500 – $550

Utilities, $75 – $475

Groceries, $250 – $225

Gas, $150 – $75

Misc., $75 – $0

Total = $0

*Tip: Specifically put a name and a purpose to every dollar that you make!

Creating a cash flow plan will help you tremendously tackle your money problems! You’ll never worry if you’re going to have enough money to live, eat, and keep a roof over your head.

PLEASE NOTE: Cash Flow Plans don’t work if:

  1. You over complicate your budget plan
  2. You don’t apply your budget plan
  3. You only THINK about creating a Cash Flow Plan

Creating a cash flow plan (and sticking to it), takes some discipline. However, We can’t stress how much it frees you from your financial burdens!

“He who is faithful and diligent in the little things will be given more to manage.”