Did you know the average American household spends a year This is a jump from last year says the U S Bureau of Labor Statistics Knowing your monthly cash flow is key to managing your money and planning to invest By looking at your income and expenses and Understanding Personal Finance Cash Flow you can see where you stand financially and find ways to improve your cash flow First figure out your monthly net income This is what you take home after taxes It includes your salary any extra jobs and other steady income Next check your monthly bills like rent car payments loans and credit cards Also think about groceries utilities and fun money The amount left over is what you can use for investing If you spend more than you make you need to cut costs You might reduce what you spend on fun things pay off debt or get advice from a financial expert But if you spend almost as much as you earn you might not be ready to invest yet The goal is to have more money coming in than going out so you can save and invest Key Takeaways Calculating your monthly net income is the first step in understanding your personal finance cash flow Analyze your average monthly expenses including housing food transportation loans insurance and discretionary spending Ensure that your net income exceeds your expenses leaving you with surplus funds for investment planning Seek ways to reduce expenses such as cutting luxuries... Login to read full