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.
For Activity 4, we recommend using the Spending Plan Worksheet provided in your workbook instead of your current household budget.
- 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.