The personal cash flow chart

In a past job I was working at a financial planning firm. We did a complete financial plan for our clients and I had a hand in the process. One of the items we created was a cash flow chart. It made it very easy for them to see how the money flows and where it goes. They are a good idea to create for yourself to give you a "big picture" of where your money goes every month. Here is an example:



In this scenario the person is funding a SIMPLE IRA and Emergency Savings directly from their payroll. They also have an automatic transfer from primary checking to "Bills Escrow" Savings to cover irregular bills such as insurance. Their investment accounts are also listed with no cash flowing currently.

This particular chart was created in Microsoft Word for ease of editing. You don't have to be as fancy and can simply draw one on paper. The point is to see where your money is going, understand why it is going there, and decide if any adjustments need to be made. It is useful in helping you meet your financial goals and understand how your money is saved and spent.

Do you have a cash flow chart?