How to Create a Cash Flow Statement

October 10, 2006

With my last post, I introduced the cash flow statement. With this post I want us to look at a model cash flow statement so that we can see how it is arranged and what information we can glean from it.

Before we get started, I want to mention a couple of things about cash flow statements in general. Cash flow statements are used to track the sources and uses of income. And, although it doesn’t seem to make sense, investing in a 401(k) or other investment account is considered a “use” of funds. Your cash flow statement should be prepared at least once a year and updated monthly to reflect changes in your situation.

Below is a model cash flow statement that I put together. I meant for it to coincide with the net worth statement.


Sources of Cash





Mutual Fund Distributions




Total Sources of Cash


Uses of Cash

Payroll Deductions

Federal Income Tax


Social Security & Medicare Tax


State Income Tax


Medical Insurance Premiums


401(k) Plan


Total Payroll Deductions


Fixed Expenses



Loan Payments






Property Taxes


Investment Plans


Total Fixed Expenses


Variable Expenses

Charitable Contributions














Total Variable Expenses


Total Expenses


Positive/(negative) Yearly Cash Flow


With my next post, I’ll go into more detail about what to look for in a cash flow statement and how it ties together with your net worth statement.

3 responses to How to Create a Cash Flow Statement

  1. check out the ebook on

    . i found the personal finance worksheets to be immensely useful. i used to be very disorganized with my financilas before. they certainly set me on the path ot financial organization.

  2. This looks interesting only you are over a dollar with your computation. Its supposed to be $2,097.

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