Budgeting Tips for Successful Cash Flow Management

Find yourself fretting over your bank account balance toward the end of the month, crunching the numbers to figure out how you'll make it through? You're not alone. Taking a few simple steps to manage your cash flow can help you stop the end-of-the-month checking account anxiety while beginning to make regular contributions to your savings account. 

Your Budget Isn't Static

While it may be tempting to use the same budget template every month, it's important to plan for varying monthly expenses. Consider everything you'll need for the month, including changing expenses like kids’ sports fees, oil changes, home repairs, seasonal expenses, and more. 

Get Everyone Involved

If you have a spouse or significant other, it's important that you get on the same page when it comes to spending. I suggest scheduling a regular monthly meeting to sit down together to look at your budget and strategize a plan as a team. 

Review the Last Few Months

Take a look at your checking account, credit cards, and other spending over the past few months to get an idea of where your money is going. Examine discretionary expenses (going out to eat, shopping, Amazon purchases, etc.). Remember, there's no need to judge yourself — this is simply to help you get an idea of how you can improve your cash flow. 

Give Yourself a Buffer

When the irregular expenses occur, you don't want to have to dip into your retirement planning fund, emergency fund, or other long-term investments. Instead, set aside a bit of money each month for irregular expenses, whether that's a car repair or dental work. Allow your buffer to grow over time, providing more and more of a cushion for expenses that seem to creep up without warning, but that actually occur normally, just infrequently. This is outside of an emergency fund, which is to be used in a true emergency (job loss, injury, etc.). It is generally recommended that an emergency fund cover three to 12 months of living expenses depending your situation.

Have Patience

Most people don't get their budget exactly right on the first try — it can take time to figure out the ins and outs of your finances. Know that having a plan is the first step, even if it takes some time to completely stick to it. Don't give up!

I Can Help

Need a new budget to manage your cash flow? You don't have to figure this out alone. Schedule a get-acquainted call with me today so that we can create a plan that helps you meet your future financial goals.