Your cash flow is one of the most important factors in your financial life. Understanding your cash flow is all about knowing where your money comes from and where it is going. Ideally, you have more money coming in than going out — but that’s not the reality for everyone. As you’re working on spending less or saving more, it’s essential to keep track of these numbers. Over time, you’ll become more familiar with your spending habits, and it will be easier to know what expenses can be eliminated or reduced. In simple terms, take charge of your money.
Stay on top of your budgeting: Often referred to as 50/20/30 budgeting, percentage budgeting is based on ideal allocations for your post-tax income. The ideal percentage outline—fixed expenses and life necessities such as housing, EMIs, credit card bills, cell phone bill (50%), savings and investments (20%) and flexible spending or lifestyle expenses such as food, entertainment, vacation, pets (30%).
