Monthly Spending Analysis
One of the most important parts of your financial plan is developing a personal cash flow statement, which we call a Monthly Spending Analysis. In its simplest form, your spending analysis lists your income and expenses over a period of time, with one month being a common term. The difference left over is your disposable income that you can spend on discretionary items or save for future goals.
Additions to a simple cash flow statement may include starting with gross income and subtracting income taxes to arrive at take-home income or incorporating savings estimates for retirement and college. There are many web-based software programs to choose from if you wish to have a more detailed Monthly Spending Analysis.