Video
Step 4: Know Your Cash Flow
Knowing what’s coming in and what’s going out gives you an informed vantage point so you can make adjustments.
Watch the video for Step 4, then take a few minutes to chart out your current cash flow.
The Keys to Success
- Update or create your spending plan.
- Document all your inflows and outflows for the last 30 days.
- Reduce expenses and, if possible, earn more.
Act Now
For Activity 4, we recommend using the Spending Plan Worksheet provided in your workbook instead of your current household budget.
Note: Use the Spending Plan Worksheet in your workbook to complete this activity.
- First, complete the LEFT column of the worksheet. Leave the RIGHT column blank – we’ll tackle that in the next step. Reference your most recent Leave and Earnings Statement (LES), Payslip, or paystub, and bank and credit card activity of statements to complete this exercise.
- Once you complete the left column, do the math at the bottom. If your Spending Plan Worksheet shows a monthly surplus, but your bank account does not confirm this result, go back and review all your inputs.