10/21/2020
How is your financial health? Much like your physical health, your financial health matters. One way to determine your financial health is to calculate your monthly cash flow.
Here is how to do it:
1. Add up all of your net income or all of your take home amounts from your pay checks, social security, ect for the month.
2. Add up all of your expenses, your bills and receipts such as rent or mortgage, utilities, grocery, healthcare, entertainment, meals, ect. everything you pay, even that Starbucks coffee you purchased for the month. If you have an annual expense, divide it by 12 and add it to your monthly expenses.
3. Subtract your expenses from your net income. This is your monthly cash flow.
What does this mean: If the number is a negative or if your expenses total more than your net income, your spending more than you make. You can make more money or trim expenses.
If you find your business in this situation, Fidelity Bookkeeping Solutions, LLC can help you analysis your financials and find your best solution. You don't have to go it alone. Call us today.
