![personal cashflow personal cashflow](https://i.ytimg.com/vi/mypQEFFZzQw/mqdefault.jpg)
Money In comes from Active Income, Passive Income, and Portfolio Income. Put concisely, we spend our Money In on things that we need ( Necessary Expenses), things that we like but don’t need ( Discretionary Expenses), and, if we’re smart, things that can make us more money ( Assets). Examples include stocks, mutual funds, rental properties, side businesses, etc. Assets are anything that we put our money into that makes us money in return. Discretionary Expenses are not necessarily bad, but they can add up quickly if we don’t pay attention.įinally, and most rarely, our Money Out can go towards Assets. If it’s fun, chances are it’s a discretionary expense. Think going out for dinner, alcohol, energy drinks, video games, suspension kit for a truck, etc. These are the types of things which are typically listed on a budget and which end up taking up a sizable chunk of our income.Įverything we spend our money on that we don’t need is a Discretionary Expense. Think taxes, mortgage or rent, car payments, car insurance, food, gas, phone bill, internet, etc. Necessary Expenses are the expenses which we all have no real choice but to pay. Just like we broke Money In into three categories to better understand where our money comes from, let’s do the same with Money Out: Necessary Expenses, Discretionary Expenses, and Assets. Here’s the updated snapshot of our Money In. However, for the purposes of understanding your own cash flow, it is important to understand that there is a huge potential to supplement your Active Income with Portfolio Income. Before trying to generate your own portfolio income, you want to do a lot of homework prior to putting money into any single stock or even a specific mutual fund. This is a story of its own that can be both highly rewarding and highly dangerous at the same time. This is the money that you generate through buying and selling stocks, bonds, mutual funds, etc. The third type of income is typically referred to as Portfolio Income.
Personal cashflow how to#
For the purposes of understanding your own cash flow, just understand that Passive Income is a fantastic thing to learn how to create. There are countless ideas out there on how to generate Passive Income, and we’ll push forward more material with effective ways to do it. With an investment property, after doing the initial legwork required and occasional maintenance, you receive money on a regular basis with little to no effort. An investment property is the most common example of passive income. Passive income, simply stated, is money that comes in that requires little to no daily effort on your part. The second type of income is known as Passive Income. This looks like anything that comes from the Department of Defense or another employer in return for your time and effort, such as the examples in the graphic above. Active Income is what you receive for doing your job. The first type of income, which we’re all intimately familiar with, is Active Income. More detailed descriptions at Products and Gallery.Money In, otherwise known as Income, comes typically in one of three varieties. However, spreadsheet users can easily adapt Cashflow Plan to meet specific needs. No prior experience of spreadsheets or budgeting is needed as Cashflow Plan contains of thousands formulae and is preformatted to handle all the common income and expenditure items encountered when preparing a household budget or personal cash flow statement. Ĭashflow Plan uses Microsoft Excel or a compatible spreadsheet running on a device capable of clearly displaying multi-column tables.
Personal cashflow download#
Get Free version at Download Free or purchase Premium version at Buy Premium. Both versions are powerful, easy-to-use Excel-based templates for preparing 12-month cashflow projections for planning and managing your personal finances. What would be the impact of changing my job?Ĭashflow Plan is available as Free and Premium versions for immediate download.
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Financially, when is the best month to take holidays?.How much could we save towards a house deposit?.How should I manage cash if I lose my job?.Can I afford to buy a new car this year?.Identifies projected cash surpluses or shortfalls arising over the coming months.Ĭashflow Plan can answer many questions about personal or family finances including:.Provides a clear view of your monthly finances.Managing money by saving both time and cash.Cashflow Plan Home simplifies the preparation of a personal, family or household budget or a detailed personal cash flow statement.