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Introduction to Cash Flow Statements

By JLP | October 10, 2006

Do you want to gain control of your spending? If so, the first step is to develop a cash flow statement. It doesn’t have to be all that detailed unless you have major spending problems.

So, what does a cash flow statement do for you? It tracks all your sources of income and all your uses of income. If it is done properly, a cash flow statement will give you an idea of what you are spending your money on and also show you areas where you can improve.

The first part of the cash flow statement is the sources of cash, which typically are:

The second part of the cash flow statement is the expenses section. Expenses can be divided into three categories:

This will make much more sense once I post a model of a cash flow statement. I’ll do that with my next post.

Topics: Basics, Budgeting, Financial Planning | 2 Comments »


2 Responses to “Introduction to Cash Flow Statements”

  1. Kim Says:
    October 10th, 2006 at 6:42 pm

    What you’re describing sounds more like an income statement than a cash flow statement.

  2. Niche Pot » Blog - Keith Cash Associates - KeithCash.com (Make money blogging) Says:
    November 3rd, 2006 at 2:28 pm

    [...] AllFinancialMatters Blog Archive Introduction to Cash Flow AllFinancialMatters. A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other [...]

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