FP/101 Week 2

1. How does a personal cash flow statement help you organize your finances?

2. What was the most interesting thing you learned about completing this worksheet?

3. Did this worksheet provide you with any ideas about how you may want to change your budget (how much you are spending, saving, or reducing your debt)?

The cash flow statement can help me organize my finances by being able to see how much money I am spending, and what I am spending it on. The statement breaks down everything from house related payments all the way to leisure activities like video games and movies. Being able to see what I spent my money on will allow me to make changes for the better or, help me to save money by seeing what I could go without and save that money. There have been plenty of times where I go out and spend more than I planned on spending whether it is on food or at the movies. I can use this chart to set up a budget for these sort of activities and not take any more money than what I budget myself spending. The most interesting thing I learned about this worksheet is, it is not just another assignment, but it can be used in everyday life. I like the idea of going to my computer and checking my monthly chart to see how much I have spent that month. Or I could use the chart to see how much money I have left to spend in a month. The cash flow chart is something that can be used in multiple ways to fit different needs. I do a good job at keeping track of my finances, but I can see myself using this as a tool to help me save money as well as keep track of where I spent it and that’s what is the most interesting part about it. This worksheet has given me a couple ideas on saving money and how much money I don’t keep account of. I budget my finances for my bills first, then food, then leisure activities. My problem is though I have a budget for my bills, and I know how much I plan on spending at...[continues]