Where Does Your Money Go?

Spending information is essential for making financial decisions. Your cash flow is simply the money going into your pocket and checkbook and out again.

It is matching up your income with your expenses.

• Income-money flowing in.

• Expenses- flow of cash out of the budget.

• Fixed Expenses- your obligation for a fixed expense is made when you enter a contract or commitment.   Ex. Lease to rent an apartment or a mortgage to buy a home.

• Flexible Expenses- the expenses that change from month to month. Ex. Food, clothing.

• Occasional Expenses- costs that come periodically.

Ex. Semiannual auto insurance, auto tags, holiday gifts.

Where does your money go? When income does not cover all expenses, what can you do?

• Increase your income.

• Decrease expenses. Take away some of your spending habits.

 

• Combine your income and fewer expenses.

Reference: The Ohio State University

“Broke is a temporary ‘out-of-cash’ situation, Poor is a state of mind.” - Angela Brown Oberer

Michelle Macon, Program Coordinator