Cash Flow: The Essential of Healthy Finances

Spendee
Spendee
Jul 14 · 4 min read
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Cash Flow Measures the Movement of Your Money

Your personal cash flow is basically your income minus your expenses over a certain period of time — typically a month. Peter Drucker once said that if you can’t measure it, you can’t manage it — and that is exactly why we’re here to help!

How Much You are Able to Save

We can simply think about cash flow as what you’re able to save from your salary each month. It’s important to know whether you’re spending more or less than you make, because spending more than you make means cutting your savings or even getting in the spiral of debt. And we don’t want that.

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Let’s Start With These Simple Steps!

Tracking Expenses

Already using Spendee to understand your money? That’s a good start! Take advantage of the beautiful analytics to explore what your weak spots are. How do you allocate your income? What are your spending categories? Is there space for you to spend less in some categories? Set up a budget to make sure you don’t overstep your limits.

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The 50–30–20 Rule

Financial experts recommend saving at least 20% from your net income each month. It’s best to put 20% aside immediately after your salary arrives. You should put the money on your savings account, invest it, or repay a chunk of your debt if you have one. Once you start practicing this step, it will become intuitive and easy to do! But what about the remaining 80% of the money?

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Connect Your Bank Accounts

Whatever your financial goal is, you should always strive for the biggest positive difference between your income and expenses. When you update your Spendee account daily (whether it’s manually or by connecting your bank accounts), you can look forward to personalised updates about your financial health! We recommend connecting your bank account to make the analysis more convenient.

Example

As you can see, Emily makes €2,000 per month. After she logged her income into Spendee, she used the rule of thumb to divide the money:

  • €600 on personal optional expenses (30%)
  • €400 on savings or repaying her loans (20%).
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Spendee: when your money talks

Stories from Spendee, the only mobile & web app that gets…

Spendee

Written by

Spendee

Personal finance app that gets your money into shape. Connect your bank. 💳 Track & analyze & budget your finances. 💰Download app here: http://get.spendee.com

Spendee: when your money talks

Stories from Spendee, the only mobile & web app that gets your money into shape. 💳 💰

Spendee

Written by

Spendee

Personal finance app that gets your money into shape. Connect your bank. 💳 Track & analyze & budget your finances. 💰Download app here: http://get.spendee.com

Spendee: when your money talks

Stories from Spendee, the only mobile & web app that gets your money into shape. 💳 💰

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