1
GETTING STARTED
Creating a cash ow budget
A cash ow budget is all about tracking the timing of your
income and expenses to make sure you have enough from
week to week.
Before you can build a cash ow budget, you will need to track your income,
resources, and expenses for at least one month. Use the "Income and benets tracker”
in Module 3 and the "Spending tracker” in Module 4 to help you get started. You’ll
need the information from both of these tools to create your cash ow budget.
What to do
•
Enter your beginning balance for the week.
•
Add all of the income and benets you receive that week. Subtract all of your
expenses for that week. Include the money you spend on everyday expenses,
bills, and savings. Also include benets you use to pay for things that would
otherwise be paid for with cash, such as SNAP and TANF. Remember that some
benets may only be used for specic expenses. For example, like SNAP benets
can be used for food, but not household items, like paper towels. If you receive a
housing subsidy, include the full value of the subsidy under income and resources
and the full market rate of your rent under expenses.
•
What's left is your ending balance. If it’s positive, you have enough income and
benets to make it through the week. If it’s negative, you’re falling short.
•
Copy your ending balance for the week to the beginning balance of the next
week. Repeat these steps for the rest of the weeks that month.
A step further
If it looks like there are weeks where your expenses are more than your income and
benets, you can use the "Improving cash ow” tool to brainstorm some strategies for
getting back on track.
Consider expense and income timing
by Creating a cash ow budget
1. Enter your starting balance for the month under Week 1. This is the total amount of money
available to you from cash on-hand, prepaid cards, and checking and saving accounts.
2. Write down the amounts you receive during Week 1 from the categories listed. If you have
income from other categories, add them together and write them under "Other."
3. Add up all your income for Week 1 and enter under "Total income."
4. Write down the amounts you spend during Week 1. If you have expenses from other categories,
add them together and write them under "Other."
5. Subtract all the expenses for Week 1 from the "Total income" for Week 1. Write this amount in
"Ending weekly balance."
6. Copy the amount from "Ending weekly balance" from Week 1 into the "Starting balance" for
Week 2. Repeat steps 2 through 5 for the remaining weeks in the month.
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5
BEGINNING
WEEKLY
BALANCE
Starting
balance
$250 $400 $ $ $
ADD MONEY
YOU RECEIVE
EACH WEEK
+ 300
+ 100
+
Total income
= 650 = = = =
SUBTR AC T
YOUR WEEKLY
EXPENSES
— 200
— 35
— 15
ENDING
WEEKLY
BALANCE
= 400 = = = =
2
3
4
5 6
1
2
3
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5
BEGINNING
WEEKLY
BALANCE
Your starting balance
is a total of your cash,
prepaid card, and
account balances.
Starting
balance
$
Wk. 1 ending
balance
$
Wk. 2 ending
balance
$
Wk. 3 ending
balance
$
Wk. 4 ending
balance
$
ADD
MONEY
YOU
RECEIVE
EACH WEEK
Job 1
+
Job 2
+
Housing subsidy
+
SNAP
+
TANF
+
Other
+
Tot al in come
= = = = =
SUBTRAC T
YOUR
WEEKLY
EXPENSES
Cell phone
—
Debt payment
—
Eating out
—
Education and
childcare
—
Entertainment
—
Groceries and
other supplies
—
Health expenses
—
Helping others
—
Housing and utilities
—
Pets
—
Savings for
emergency fund
—
Savings for goals
like education or
retirement
—
Transpor t
—
Other
—
ENDING
WEEKLY
BALANCE
= = = = =
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
This tool is included in the Bureau of Consumer Financial Protection’s Your Money, Your Goals: A
nancial empowerment toolkit. The Bureau has prepared this material as a resource for the public.
This material is provided for educational and information purposes only. It is not a replacement
for the guidance or advice of an accountant, certied nancial advisor, or otherwise qualied
professional. The Bureau is not responsible for the advice or actions of the individuals or entities
from which you received the Bureau educational materials. The Bureau’s educational efforts are
limited to the materials that the Bureau has prepared.
This tool may ask you to provide sensitive information. The Bureau does not collect this information
and is not responsible for how your information may be used if you provide it to others. The Bureau
recommends that you do not include names, account numbers, or other sensitive information and
that users follow their organization’s policies regarding personal information.