cashflowstat

Personal cash flow statement

If you are already doing some sort of budgeting, it may be interesting to see your breakdown of income, so you know where your money goes to each month. This will help in determining whether all the allocation is done properly and whether you would like to channel more or less into the various funnels that your income goes out to every month.

I created a few broad categories which I would like to track and see so I have a broad view of where my money is going each month.

 

There are a few things you can tell just by looking at this. I am an employee so 20% goes to CPF each month. I give tithe each month, some money goes to household expenses, I was also rather surprised that a huge chunk of my salary is going into insurance premiums. I have decided to review it and see which policies are not really necessary and cut back on them.

In fact I have already surrendered my endowment plan and lowered the premium for my ILP because ILPs are generally expensive plans to begin with. If you do not have an ILP please do not go out and get one. There are cheaper and better alternatives to balance protection and investment.

I am doing my own investment so I felt that the endowment plan returns are not really good enough to pay each month and I may not even get the expected 3% returns at the end of 25 long years.

At the same time I also do an automatic deduction for my savings so I do not need to do anything to save money and only spend what I have left after saving. In this graph the savings cover investment as well so it is not entirely saved in a bank deposit account.

Hopefully the next time I review my cashflow again my savings pie will grow while the spending part reduces.

 

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