Friday, August 10, 2012

Weekly Cash Flow Plan

Every week or two I sit down with paper, pen, calculator, and vodka (just kidding...sorta) to sketch out our weekly cash flow plan.  During this little session I actually plot out the financial situation for the next week (or two).  I take into account any deposits that will be made and any bills that will be paid.  I also deduct any other anticipated expenses like groceries, gasoline, dinner out, etc.

What this plan does for me is see if I need to cut back spending somewhere (I'm looking at you, "entertainment and dining out" fund.) to ensure that I don't need to transfer money from savings.  Also, it will show me if there is money that will be extra that I can apply to debt payments or the Christmas fund.

This process only takes ten minutes, give or take, but gives me a huge sense of reassurance that our week(s) will go smoothly.

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