Closing - Keep Learning and Keep Earning
The More You Put In, The More You'll Get Out

BOOSTER: Know If You Earn Enough – Calculating Your Current Cashflow (5:00 mins)

I’m all about helping you win with money and getting you results fast.

In the action plan, you got clarity on your overall financial situation, but in this booster lesson you start looking closer at your money going in and out with a quick and dirty cash flow budget

NOTE: A cash flow budget is all about tracking the timing of your income and expenses to make sure you have enough from paycheck to paycheck.

Once you’re done you’ll know where your money goes, if you need cut expenses, earn more, or if you are just fine with your income.
Here’s how you’ll do it.

You’ll Need:
A calendar
A calculator
A piece of paper (and a pen)

  • Step 1: Write Down How Money You Have Right Now (Your Starting Balance)

Log into your bank accounts and make a note of your current balance.
Pro Tip: Don’t forget to subtract any pending charges that might be coming out

  • Step 2: Write Down How Many Days to Your Next Paycheck

You need to know how long the money you have right now will need to last you.
So right down how many days until your next paycheck and add in any funds you will receive until your next check.

  • Step 3: Add All The Expenses That Are Due Before Your Next Paycheck

Now that you know how much money you have, and how long it needs to last, now you need to know how many bills and expenses that money will need to cover before a new paycheck comes in.
Use your pen and paper and record the dates that the bills are due, and how much each bill will be.
Add up the total amount.

  • Step 4: Subtract the Upcoming Expenses Due From Your Current Cash Amount

Here is where things get real.
What’s left is your ending balance.
If it’s positive, you have enough income and benefits to make it through to the next paycheck. If it’s negative, you’re falling short and there’s more looking to do – you’ll need to make some changes to get your finances to last
We’ll talk more about budgets and what to do with ‘leftover’ funds in module 3.

  • Step 5: Repeat Steps 2 – 3 for the Next Paycheck

Copy the remaining balance from Step 4 and add it to your next paycheck coming up.
That is the new starting balance for the next paycheck
Understanding how your money flows sets the foundation for money confidence, creating budgets, and reaching your money goals.