Cash Flow Analysis & Wealth Building

Learn how knowing your cash flow position and acting on that knowledge can lead to a lifetime of financial success…


In the current economy many are concerned about their financial future and are interested in improving their finances in an efficient and highly effective manner.


In this discussion will make a shift from the most recent discussions that focused on inspiring you to take action and showing you action steps that could lead you toward achieving more, to discussing in concrete terms how you can improve your “cash flow position” and finances throughout your lifetime.


Although managing your cash flow or budget can be difficult and challenging for many, it really is not as difficult as you may think if you have an effective plan of attack and you are sincere in your desire (efforts) to achieve real success.


If you have a yearning to reach higher and achieve more–you can do so with a high level of determination and the inclination to look at your monthly inflow and outflow of cash into your household at this time.


On many occasions in the past sent visitors to other pages and sites when it came to constructing a budget or cash flow statement, however in this discussion the creator of will show you in precise terms how you can budget effectively in your future by taking the following 3 actions.


1) Complete a self-analysis of where you now are financially

In the following data (cash flow statement) you will find information that you can use to start on a path of life that you choose.  Whether you earn $50,000 per year or if you earn $100,000 per year or any other amount–you can plan your future in a more certain manner by analyzing your income and expenses on a monthly basis by creating a cash flow statement or budget–at a minimum.


How to Prepare Your Monthly Budget (Cash Flow Statement) in Simple Form:


Monthly Receipts


Wages                                                                     $_________

Dividends                                                               $_________

Interest                                                                   $_________

Rental                                                                      $_________

Royalty                                                                    $_________

Other                                                                        $_________

TOTAL Monthly Receipts                           $_________


Monthly Expenditures


Auto loan payment                                              $_________

Auto maintenance                                               $_________

Child care                                                               $_________

Clothing                                                                  $_________

Contributions                                                        $_________

Credit card payments                                           $_________

Dues                                                                         $_________

Entertainment                                                       $_________

Food                                                                         $_________

Household maintenance                                     $_________

Income & SS taxes                                                $_________

Insurance                                                               $_________

Personal care                                                         $_________

Property taxes                                                       $_________

Rent payment                                                        $_________

Mortgage payment                                               $_________

Retirement Investment                                       $_________

Saving/investing                                                   $_________

Transportation                                                      $_________

Utilities                                                                   $_________

Other                                                                       $_________


TOTAL Monthly Expenditures                     $_________


Net Cash Flow

Total monthly receipts                                             $___________

Total monthly expenditures                           –       $___________


Monthly Net Cash Flow                 



The above cash flow statement is rather simplistic, however if you enter accurate data it can be used as a template to transform your life and particularly your financial future.


In simple form in the end you are basically subtracting your monthly outflow (expenditures) from your monthly inflow (receipts) to come up with your monthly net cash flow (discretionary income).


Your wages would be your “gross wages” for the month  and would be entered in the monthly receipts category along with other sources of income (cash or equivalents) that you receive on a monthly basis.


Your federal and state (if applicable) income taxes paid, social security and medicare (amount withheld on your pay stub(s) for the month) would be entered in the monthly expenditures category along with your other expenditures or monthly payout of cash or cash equivalents.


If your retirement contribution is made on a pre-tax or post-tax basis include that as well.


Keep in mind the statement can be further broke down into categories such as fixed and variable expenses to add further clarification as you formulate your goals.


The key point is that you are ready to get started on a path toward financial success and you are fully committed in doing so.


It is very important that “you” want to determine your discretionary income  (monthly net cash flow) or lack thereof, so that you can plan accordingly or make adjustments so that you can reach your desired goals.


If you come up with a low or negative “net cash flow number” there is no need to panic at this time as that is not uncommon.


The key is that you may need to change your habits, get more income, cut expenses or do a combination of actions to get your cash flow in the positive column in the future so that you can more effectively reach your goals.


In a future discussion will provide an actual cash flow statement with real numbers so that you can have a real blueprint of what you can do to further enhance your finances and use the data entered as a guide to give you ideas that you can readily comprehend so that you can make your dreams come true.


2) Determine where you want to go based on data from your self-analysis

Can you use the data derived to move forward or must you come up with a payoff or pay down plan before you can actually make real progress?


Either way, as mentioned earlier there is no reason to panic! 


You can manage your money better on a consistent basis by being open to learning new and more empowering ways of doing so and putting what you learn into action on a consistent basis.


You can reach your retirement goals, you can pay off your credit card debt, you can get more income to make your life more meaningful, you can donate and spend time at your favorite charities–however it starts by leaving excuses or reasons why you can’t (or won’t) move forward behind you!


3) Determine to do even more to improve your finance and wealth building position

You must realize that improving your finances is a lifelong process.


That means you must build off of your financial analysis and decide to do even more by looking at your finances in a comprehensive manner.


By making a sincere effort to analyze your insurance, investments, taxes, education planning, estate planning/wills and retirement planning in a more congruent manner you can set yourself up for a lifetime of success where you control the direction as opposed to being pulled in directions that are not of your choosing.



By knowing your cash flow position at the earliest time possible you can position yourself and your family for a more prosperous and relaxing future.


You can use the above blueprint to change the direction of your life right now and leave all excuses and reasons that you can’t have a successful financial future behind you–once and for all!


Your actual numbers from your cash flow analysis will be unique to you, however the basic concept or understanding of how to move forward will remain constant for the most part.


If  after entering your data above you find out that you have adequate discretionary income that allows you to reach your desired goals–great!


If after entering your data above you determine that you don’t have adequate discretionary income you must make adjustments and possibly cut expenses, get more income or more than likely do a combination of the two!


It really is just that simple!


Isn’t it time that you forge a new and brighter future where success is more likely to occur and not just move about daily with no certainty of where you are headed?


All the best as you “analyze your cash flow” and set meaningful goals in an attempt to reach your highest level of success and make your money grow–so that you can once and for all put excuses to rest…


NOTE: You or your in this discussion could mean you as well as other members of your household who contribute financially whether it be your spouse or other members of your household.


Find out what you can do to make your dreams come true–by visiting our most frequented page–Wealth Building & You…


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