Monthly Cash Flow Plan
As stated by the author, this spreadsheet is a Zero Based budget based on the principles taught by Dave Ramsey. All your income minus all your outgo (including bills, giving, saving for emergencies and paying down your debt) should equal $0.
Short guidance on how to use this spreadsheet is as follow :
- On the left side of each months’ worksheet is a place for your income
- On the right is all your expenses that you have to pay every month
- Underneath your income is a place for all the expenses you plan on paying with cash using the Envelope System (put your cash in envelopes at the beginning of the month – when it is gone, you are done spending).
- Below the cash section is the “Totals” section. This shows you your income minus your expenses.
- Whatever is left is what goes on the next “Baby Step.” Your income, minus your expenses, minus how much you spending doing the baby steps will equal $0 if your budget is in balance.
The 7 Baby Steps are:
1. Save $1,000 beginning Baby Emergency Fund in the bank.
2. Pay off all your credit card debt except the house.
3. Save up 3 – 6 months of living expenses fully funded emergency fund.
4. Put aside 15% of your income per month for retirement.
5. Fund your childrens’ college funds (this one won’t apply to everyone).
6. Pay off your house early by paying extra on your house payment.
7. Build wealth and give it away!
Author : Kenny Drobnack
