BUDGETING FOR THE FUTURE: CASH FLOW

Money comes in and goes out every month. Where it comes from and where it goes we refer to as your cash flow. This information is important to document in order to make you aware of all of your sources of income, your spending habits and to show where money may be saved. Use the following worksheet to illustrate your cash flow: 

Where it Comes From			Where It goes
	$Annual Amount				$Annual Amount
Family Support			Family Support
Salary			Income Tax
Bonus and Commissions			Mortgage or Rent
Freelance Consulting			Property Taxes
Dividends			Utilities
Interest			Auto Maintenance
Rent			Commuting/other Transp.
Social Security			Insurance
Pensions				Automobile
Annuities				Homeowner's or Renter's
Tax Refunds				Life
Other				Health
Total Inflow			Disability
			Child Care
			Education
			Food
			Entertainment
			Vacation/Travel
			Club Dues
			Medical Expenses
			Clothing
			Household Misc.
			Home Improvements
			Magazines, Books
			Contributions to Charities
			Total Outflow
			Total Inflow
			Minus Outflow
			Surplus or Deficit

Once your net worth and cash flow sheets have been filled out you should have a pretty good idea of your financial inventory. Use this information to find where you can curb our spending habits enough in order to save 10%-15% of your total income. 

This is now your budget. Stick to it! 

The money you put away will be invested in order to reach your short and long-term financial goals. Where to put this money depends on factors such as time horizon, risk tolerance etc. and will be discussed in subsequent articles. 

Remember, if you don't put money away today, there won't be any saved for tomorrow.

Bio and more articles by Christopher F. Cave, Financial Advisor

Dishon & Block, APC        Offices in Orange County, California FIND OUT WHAT YOUR OPTIONS ARE! Name Email Phone Number  *include area code Alternate Phone  *include area code Is it okay to leave a message if we are unable to reach you? Yes   No Comments Please give us a brief description of what you would like to cover in our initial consultation    You may also Contact Us directly Telephone: 949-231-1305  Email: contact@dishonblock.com Consultation limited to Southern California residents or those with cases pending in Southern California. If you are out of the local calling area, we will set up an appointment time for you to call.