Creating a Cash Flow Budget
Before you can build a cash flow budget, you'll need to track your income, resources and expenses for at least one month. Use your Income & Benefits Tracker and your Spending Tracker to help you get started. You’ll need the information from both of these tools to create your cash flow budget.
What to do
| 1 |
Enter your beginning balance for the week |
This is the total amount of money available to you from cash on-hand, prepaid cards, and checking and savings accounts. |
| 2 |
Add income and subtract expenses |
Add all of the income and benefits you receive that week. Subtract all of your expenses for that week. Include the money you spend on everyday expenses, bills and savings. Also include benefits you use to pay for things that would otherwise be paid for with cash, such as SNAP and TANF. Remember some benefits may only be used for specific expenses. For example, SNAP benefits can be used for food, but not household items, like paper towels. If you receive a housing subsidy, include the full value of the subsidy under income and resources and the full market rate of your rent under expenses. |
| 3 |
Ending balance |
What's left is your ending balance. If it's positive, you have enough income and benefits to make it through the week. If it's negative, you're falling short. |
| 4 | Following week beginning balance |
Copy your ending balance for the week to the beginning balance of the next week. Repeat these steps for the rest of the weeks that month. |
Download this fillable PDF to create your cash flow budget.
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Basic Elements - Legal Text
Source: consumerfinance.gov
This material is provided for educational and information purposes only. It is not a replacement for the guidance or advice of an accountant, certified advisor or otherwise qualified professional.