Understanding your cash inflows (money coming in, like Revenue wages or side income) and cash outflows (money going out, like bills, groceries, and entertainment) is crucial because it helps you see where your money truly goes.
When you track both, you can:
- Avoid overspending: You’ll know your limits and can make informed choices before buying.
- Plan ahead: You can set aside money for future expenses like tuition, emergencies, or repairs.
- Stay out of debt: By knowing when cash is low, you can adjust spending before needing loans or credit.
- Reach goals faster: Seeing where leaks occur helps redirect money toward savings or investments.
In short, it gives you control instead of wondering where your money went, you decide where it goes.
