Calculating your cash flow can help you create a financial plan and realistic budget to help you reach your goals. To calculate your cash flow, select a period of time (e.g., monthly) and list all of your income and expenses in that period. Then, subtract your expenses from your income to figure out if you have a positive or negative cash flow.
While the final cash flow number is important, don’t overlook the details: a close inspection of your income sources and your expenses can give you a snapshot of your spending habits, identify which expenses are tying up your income the most, and help you find areas where you can save.
To get started, you can use our fillable Cash flow PDF form. (Note that this form also includes pages to calculate your personal net worth. You can read more about personal net worth statements here).