This post is contributed by Relax, the blog author of Wise Curve – get smarter every day!
I feel honoured to contribute a post on KC Lau’s blog. He’s one of my multi talented role models so I count myself lucky to be his net friend. Now let’s talk about money!
I am a young dude who’s seeking employment. Currently I am living with my parents and I don’t own a car. I have decided to start my monthly cash flow database with the help of Microsoft Excel and Expensr, just for fun. I know my cash flow is negative, since I have no income and live off my savings and pocket money. But at least I know this is roughly how my cash flow looks like when I become jobless in the future (anything can happen).
I record all my spending on Microsoft Excel. For each item spent, I assign a priority number so that I know whether I am spending my money on value-adding stuffs or useless junk. 1 is for mandatory item; 2 is for important stuff; 3 is for nice thing; and 4 is for useless junk. I convert the data into graphs where I can monitor my monthly and weekly spending. My monthly spending graph consists of lines representing active income, passive income, and expenses.
With Expensr, I can analyse my spending using pie chart. I made a mistake of including my investment portfolio on my Expensr account. Maybe I should just get Quicken and keep my investment data there.
Now let’s have a look at my spending in November. As you can see, I spend huge amount of money on books. In fact I have been buying books for the past few months, where my monthly book spending seldom goes lower than RM 200 (somebody stop me!!!). Most books are self improvement related non-fiction stuffs. Should I consider books as investment or expenses? Hmmm……
I eat only 1.5 meals a day. I skip breakfast and eat a bit at coffee break. Sometimes I eat a bit more, depending on the situation. Normally I eat dinner at home, which is free. Therefore, I spend nothing on food most of the time. The main reason I eat little is to live life efficiently — I save money and time. I strongly discourage you to eat less than 3 meals a day if you are below 24 year old because you need to eat properly to grow up well.
Most of the “food stuffs†I buy are white coffee and cappuccino at café. I love to indulge myself at café — escaping the harsh reality of life and enjoying privacy in relaxing atmosphere while reading my books. Once in a while, spending time at café is healthy for mind and body. My favourite cafes are Old Town, Station 1, and Nelson Tan (bird lays egg). Sometimes I go to Wings café to enjoy live singing.
I travel by train and taxi, and I believe that life without car is very economical.
At the beginning of November, I spend quite some money at internet café (under Outing category). After getting broadband internet, I can go online at home and save time and money. I think I will spend much less on internet in December.
At the end of November, I went for a holiday trip with my family for a week. I didn’t spend money at all for this trip.
For privacy reason, a portion of my spending will remain secret. Well, you know those ang pao and donation money, ahem….
I think I can improve my cash flow by setting a limit on how much money to spend on books per week. Self control on this item is needed otherwise my financial health will go kaput. I can spend less time at café, which will reduce my “food†spending dramatically – time for 3 in 1 Nescafe.
Most likely my transportation cost will increase once I start working. I might spend more money on self improvement, such as taking up extra courses to sharpen up some skills (for earning more money). I can predict that I will spend more money on “health care†at Thai massage parlour (genuine one of course).
That’s how I spent my money last month. Any comment on my spending habit is appreciated.
Technorati Tags: cash flow, personal finance, books, spend
12 replies to "How to manage monthly cash flow"
Hi KC,
Actually i just know about you while i was searching book about cash flow at POPULAR book shop recently.(I know it quit too late..but late better than never right!)
To tell you the truth… i not yet buy any of your book before this.Sorry!
But i sure i’ll be buying one soon…; )
Today i just want to know wheteher you can share your excel sheet template cash flow to me …? because i like what i seeing in this blog post!
Hope to hear good news from you soon !
Thanks.
Id love to look at how your Excel sheets function. Do share with us.
Thanks.
[…] I want to show you that I’m serious with my article and put money where my mouth is. Here’s my November 2008 expenses pie chart. Most of the money spent goes to […]
[…] guys, it’s me Relax. Last month I shared my November 2008 cash flow with you and now here’s December’s. December was a month with festive mood. Did I get […]
[…] presents How to manages monthly cash flow posted at KCLau’s Money Tips, saying, “This post is contributed by Relax, the blog […]
[…] presents How to manages monthly cash flow posted at KCLau’s Money Tips, saying, “This post is contributed by Relax, the blog […]
Very interesting method…..
[…] presents How to manages monthly cash flow posted at KCLau’s Money […]
[…] I guest blogged on KCLau’s money tips blog. You can read my post here (regarding how I managed my cash flow in […]
[…] presents How to manages monthly cash flow posted at KCLau’s Money […]
can please share your excel sheet template? interested in doing the same thing ..thanks!
Thanks KC for featuring my money article!
True Wealth is going to have a special year end sales… hmmm… my hands are getting itchy again.