Do you know your monthly Cash Flow?

What is Monthly Cash Flow?

Let’s start by defining what Cash Flow really means. By definition, it is a financial term that tells you the amount of money that comes in and out through your wallet or bank account during a specific period. In other words, to calculate your cash flow you need to know your incomes and expenses in a given period and compare them. If you spend during a specific period less than you earn, than your cash flow is positive and vice versa.

Why is it important?

In order to start analyzing your personal finance, it is always a good thing to start with your cash statement. When you see your month to month cash flow it helps you to indicate whether you need to take any changes in your spending habits and if yes, how should you prioritize it.

If you are using Spendee regularly, go through your Spendee wallets and bank account and see, how you’ve been doing each month. You should be able to asses on a month to month basis how much money you’ve made, how much you’ve spent and how much stayed with you. You should always crave for as large difference between income and expenses as possible. The positive difference between income and expenses indicates how much money is staying with you, thus could be saved for emergencies or invested for future revenues.

On the other hand, if your cash flow is negative, then it is a good time for a change. And cash flow statement should easily help you to decide, which categories are the first one to start saving money on.

Monthly Report

In Spendee, we’ve decided to help you with your calculations and prioritization and if you are imputing all your incomes and expenses correctly, you will be rewarded with a monthly report with actionable steps.

The monthly report tells you what were your expenses and incomes and based on that whether your cash flow is positive or negative. It also tells you the ideal amount, you should try to save next month.