Know your cash flow!


In other words, know how much money do you have monthly after paying all of your expenses and taxes, similar to your discretionary income. This means your gross income subtracted by taxes and by living expenses – such as shelter, food, and clothing, and also deducting the amount directed to pay debts. The cash flow will provide you an important outcome: your capacity to save money monthly and annually!

The result of this practice can be positive or you can realize that your capacity to accumulate money is zero or negative, which means you might be consuming or net worth or generating debts each month (worst case scenario). I would guess if you are doing this for the first time, the last scenario is more probable.

How to calculate my cash flow? There are several free cash flow templates and tools, from beginner to expert levels. The only two resources you must have is time and a computer.

Find below some tools to calculate personal cash flow and budget that I think competent in this task:

Additionally, two guides on how to do your cash flow, with hints and concepts you need to know:

An important remark: if you receive an Annual Bonus, it is necessary you consider your annual cash flow also, not only your monthly one.

If you have any comment, suggestion or opinion, let me know at “Leave a Reply” following this post.



Guina, R. (2018, January). How to Create a Personal Cash Flow Statement. Retrieved from Cash Money Life:

Probasco, J. (2018, January) Best Budgeting Software for 2018. Retrieved from Investopedia:

Investment Moats. Retrieved from:

Rose, J. (2017) Investopedia: What is the difference between disposable income and discretionary income? Retrieved from:

Microsoft Simple personal cash flow statement. Retrieved from Microsoft:

TD Canada Trust. Personal Cash Flow Calculator. Retrieved from TD Canada:


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