Importance Of A Monthly Cash Flow Statement (Free Printable)

Cash Flow Plan

A Personal Cash Flow Statement Will Monitor Your Money Supply

Why is a personal monthly cash flow statement important to the success of your budget? 

Well, all I can say is that knowing your cash flow is a stepping-stone into the world of budgeting.

A December 2019 poll by CIBC found that 60% of respondents said that they could be managing their money better than what they were currently employing.

The thing is we want easy and fast and the truth is sometimes we have to spend a bit of time figuring out our monthly finances.

I agree in part with Jamie Golombek, the managing director of CIBC financial planning and advice that we shouldn’t worry about debt as much as we need to manage it.

Stressing about what has already happened won’t change it, however finding ways to manage your debt and not creating more is the key.

Here’s the low-down, if you can’t afford to pay it in full, don’t buy it unless it’s an emergency and essential need for your life.

What Is Cash Flow?

If you are interested in monitoring your cash flow coming and going out this free budget binder printable, “Monthly Cash Flow Statement” is simple yet effective to do so.

Also, if you are a business owner a cash flow statement assists you with the flow of income coming in and out of your business.

Essentially a monthly cash flow statement is a statement of money coming in and going out for one month.

Using a cash flow statement for a business is a must to ensure that you’re paying your bills and bringing income in to cover them.

Once you complete using your cash flow statement it allows you to view the health of your finances.

You’ll know whether you have enough cash upfront to cover your expenses for the month.

Budgeting Is Not For Everyone

Every so often I’ll have someone tell me that they do NOT like to budget and I say, that’s cool.

I won’t lie and say I don’t care but at the back of my mind, I question why people don’t realize the benefits of budgeting.

Honestly, I don’t get offended when anyone tells me that they manage their money differently than we do.

I also don’t mind if I’m told that budgeting is boring, takes too much time and I don’t need a budget my finances are great.

Whatever you choose to do with managing your money YOU have to live with the results at the end of the day.

Don’t take that literally as it might be years before you recognize what crappy financial decisions you’ve made over the years.

But hey, I’m not here to tell you what to do with your money.

I’m here to explain to you the importance of using a Monthly Cash Flow Statement especially for those of you new to budgeting.

This may be your first time visiting the blog or you’re ready to jump into the budgeting game once and for all.

If you’re a pro at budgeting the Monthly Cash Flow Statement might not suit you.

Besides, you already know what you’re doing and are probably using a budget spreadsheet or budget app.

This free budget binder printable may even be valuable to teachers wanting to introduce budgeting to their students.

Importance of A Monthly Cash Flow Statement

Cash Flow Statement Budget Binder Printable

Why is cash flow important?

Last month I put out a free weekly expense tracking sheet which is different from the monthly cash flow statement.

How are they different?

Well, let’s look at both and discuss how they differ and why they are both essential budgeting tools for beginners.

Weekly Expense Sheet

  • Create personal budget categories based on needs, wants and priorities. (debt repayment, mortgage, rent, groceries, etc.)
  • Tracking Expenses with-in personalized budget categories
  • Collecting receipts and using bank account, cash, debit or credit card expenses.
  • At the end of the week, you add up each budget category to get a figure of how much you spent for the week.

Monthly Cash Flow Statement

  • Starting Bank Balance
  • Tracking Daily Income
  • Tracking Daily Expenses going in and out of the bank or by using cash, debit or credit card. Collecting receipts.
  • Monitoring the balance of your bank account and cash

So, the Weekly Expense Tracking is tracking your expenses based on budget categories where the Monthly Cash Flow Statement tracks your actual cash, credit, and chequing or savings account.

The idea behind the monthly cash flow statement is to get new users to budgeting used to tracking what they spend and ensuring they have the money to cover the expense.

What happens is when people don’t track their spending habits is that they overspend.

When there is no money left in the pot there is nothing left to pay bills promptly.

Paying for interest and penalties for non-payment or partial payment of bills only sets you back.

It may be a temporary fix but it’s never a long-term success story.

It’s what I like to call, “Spending More Money Than You Earn” which is common and the main reason why people are in debt.

Types Of Cash Flow

When determining where your cash flow is coming from remember that it’s not just from your employer.

  1. Employee Pay
  2. Free Money or Winning Money
  3. Given Money
  4. Found Money
  5. Inheriting Money
  6. Interest
  7. Cash Side-Jobs
  8. Buying and Selling

I’m sure we could all come up with other types of personal cash flow so always consider your situation.

Creating A Budget From Your Cash Flow Statement

By using the cash flow statement you’ll understand how to manually input your income and expenses then adjust your available funds.

This is a great way to experience budgeting and sort of like getting your feet wet before the real deal.

After working through a couple of months of tracking using the cash flow statement I’d suggest starting with a bare-bones budget.

But before even doing that you should read our 10 Step Mini-Budgeting Series that we designed based on our personal experience.

I’d say it worked pretty well for us since we became mortgage and debt-free by the age of 40.

It’s not necessarily how much money you earn it’s how you’re spending it, tracking it and saving it that matters the most.

Those are 3 vital reminders that you should visit often.

  1. How have my spending habits been?
  2. Am I doing the best I can at tracking our money?
  3. Can we save any more money or are we saving enough?

From Cash Flow To Budgeting

Back to the basic budget sheet as a starting point for newbies.

The bare-bones budget or basic budget is also printable which you can pencil in and erase.

One of the great uses of this type of budget is that you manually do the work which I find helps with the learning process.

At some point, you might get so bored with using a simple budget, budgeting jars or the cash envelope system that you’re ready to graduate.

For those of you with a smartphone using a budgeting app such as Mint or Wally both free budget apps.

Wally lets you take control of your money. Balance your income and expenses. Understand where your money goes. Set and achieve your financial goals. Seamlessly and intuitively.

If using a budgeting app is not your cup of tea perhaps using our free excel budget spreadsheet might be a worthwhile choice.

Whichever budgeting system you choose to use just remember it must work for you.

If you find it’s not working then keep searching online for something else you’d like to try.

Please don’t suffer through a budget that overwhelms you because you’ll just give up.

I won’t be offended if you don’t use our budget as I’d rather see you budgeting then not looking after your finances

In Summary

Your simple personal cash flow statement will allow you to get a grip on budgeting for the first time.

Creating a budget binder with important budget printables increases your financial knowledge and experience.

Eventually, you’ll become a pro and tracking your incoming and outgoing expenses that all you’ll need is a budget.

Get your Free copy of the Personal Monthly Cash Flow Statement for your Budget Binder Here.

Discussion: When you first started to use a budget what budgeting system did you use to get you started?

Share your comments below and I’ll be sure to respond to you all.


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  1. I agree with most people that budgeting is BORING. It is time consuming, plus the way it looks when done can make you feel depressed when you see where and how your money is going. Since I started reading your blog last year. I have downloaded and tried your excel sheets, tried to make it work for us. I found that since we live on the west coast the categories are too many and create problems for understanding the end result. So I have spent the better part of 6 months creating my own excel sheet, using parts of your sheets and modifying them to work with us. It is laid out to show less categories and to match what we spend our money on. The one I have created for 2020, is just about complete. It still takes a little time to critique it. But I do want to say thank you to you and MRS.CBB. The sheets you created made it possible to lead to one that can work for us. We have paid for and tried other Budgeting programs and found that they just didn’t work for us. Your free sheets fit the starting point to point me in the right direction.

    1. Hi Rob,
      I agree budgeting can be boring but it’s the end results that make you happy if it’s working the way it should be. I’m glad you were able to work with our budget to make your own. That’s essentially why we left the formulas open for those of you who want to use excel. We’ve done the base and the rest is up to you. We’ve used these for years now and although I’d like to add a few more things to it I need to find the time. I’m more looking for data if anything so formulas to present more charting etc. I’d love to hear how yours works out for you or even email me. It may turn out to be a great blog post we can share with the readers to let them know what they can do with this excel budget to work for their family.

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