How to Calculate Personal Cash Flow

Businesses generate a sources and uses of cash statement to evaluate their income and expenses and to check profitability. Similarly, a cash flow statement can help you evaluate your personal income earnings. Are expenses exceeding income? This cash flow calculator will determine if you are running ‘in the red or the black’ each month.



Are My Expenses Exceeding Income?

One of the big advantages of creating a budget is to determine how much money you have coming in and going out. When trying to determine your cash flow, start by keeping track of the money you spend every month. Where does it all go? By keeping an account, you can see how much you spend on groceries, entertainment, clothes, gadgets and everything else this month. This lets you accurately see how you actually spend your money.

Next, you’ll want to evaluate your after-tax personal income and earnings, including any money you have coming in from side gigs, overtime and part-time work. This may be as simple as looking at your income statements.

Once you have both numbers, it’s time to compare. Are you earning less than you spend? Are there areas where you can cut back expenses, so you can earmark more for savings? Is a lot of your money going toward debt?

Once you’ve run an analysis, you can use the free, unbiased Money Help Center calculators to draw up a budget and evaluate how you can repay your debts faster, so you can get out of the red as quickly as possible.

What If I’m Running in the Red?

If you’re spending more than you earn, there are a few ways you can turn your budget around:

  • Consider Refinancing Your Debts: Money Help Center has free calculators to help you figure out if refinancing your debts would ease the pressure.
  • Boost Your Income: By taking on part-time work or overtime hours at your current job, you’ll be able to put more money toward your necessities.
  • Stick to a Budget: If you’re overspending on dining out or buying clothes, set a dollar limit on these expenses. Consider using the cash envelope system for these items, so once the money for that item has run out you can’t just charge more.
  • Eat at Home: Making your own meals costs a fraction of dining out and is also healthier.
  • Cut out Recurring Expenses: If you have subscriptions for services you don’t use or memberships you never take advantage of, cancel them. That’s money each month you’ll be freeing up to put toward your debt.
  • Sell What You Don’t Need: If you have gadgets, clothes, exercise equipment or other items gathering dust in your home, sell them off. You can put the extra money in an emergency fund or toward an important purchase.

If you need help balancing your budget each month, Money Help Center has free calculators you can use to crunch the numbers. These always free and unbiased calculators are fast and easy to use. Calculate your current cash flow to take control of your money, so you can have more cash in your wallet.