Stock Preacher

With a cash flow statement you ask yourself three question:

What money is coming In? In your cash flow statement, jot down all sources of income. Calculate it for the month and then for the year. Include everything, including salary, wages, interest, dividends, and so on. Add them all up and get your grand total income.

What is your outgo? Write down all the things that you spend money on. List all your expenses. If possible, categories them into essential and nonessential. You can get an idea of all the expenses that you can reduce without affecting your lifestyle. But before you do that, make as complete a list as possible of what you spend your money on.

What’s left? If you income is greater than your outgo, then you have money ready and available for stock investing. No matter how small the amount seems. it definitely helps. I ‘ve seen fortunes built when people stated to diligently invest as little as $25 to $50 per week or per month. If you outgo is greater than your income, then you better sharpen your pencil. Cut down on nonessential spending and increase your income. If you budget is a little tight, hold off on your stock investing until your cash flow improves.

Tallying up your income

Using table below as a worksheet, list and calculate the money you have coming in. The first column describes the source of the money. The second column indicates the monthly amount from each repectvie source, and the last column indicates the amount projected for a full year. Include all income, such as wages, business income, dvidiends, interest income, and so on. Then project these amounts for a year and enter those amounts in the third column.

Listing your Income

This is the amount of money you have to work with. To ensure your financial health, don’t spend more than this amount. Always be aware of and carefully manage your income.

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