Budgeting tips for cash flow management

Plans

Having an overview of how you use your money, and understanding your cash flow, will give you an insight into how you allocate your funds and how you might make changes to improve your budget

To start with, separate your income into two groups:

  • dependable (like your salary)
  • other types (like dividends or capital gains from shares).

This will give you an idea of how much you have to work with in any given period. 

Then, compile a list of outgoings, like:

  • payments that you have to make (such as mortgage, car, rent, food, credit card repayments)
  • other, discretionary things that you spend money on.
You can then use this information to find areas where your money is under-used, which opens up opportunities

You may, for example, notice that your cash flow cycle is long: your salary goes in but you don’t tend to spend it for a month or so. Perhaps you could earn more interest on that money instead of leaving it idle. 

Alternatively, you may notice areas of waste that you can improve - for example underperforming investments or expenses without clear benefits. 

Cash flow insight is also helpful for households where there may be more than one income coming in at different times, such as two partners’ salaries and/or earnings from investments. 

It will help you with timing to ensure you can meet your payment obligations and balance the budget. You can also use it to increase your savings so you can achieve financial goals - for example, to work towards a holiday or to create a ‘rainy day’ account.

If you enjoyed reading this article, why not share it?

Simply copy and paste the text and include a link to the article. Please read the Expertise Articles Terms of Use before sharing.

Macquarie says hello to Apple Pay

A smarter way to pay

We're excited to tell you that Apple Pay is now available on all Macquarie debit and credit cards. It is an easy and secure way to make payments instore, in apps and on the web with Safari on your Apple device.

Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 (MBL). This information does not take into account your objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire any product mentioned on this page, a person should obtain and review the terms and conditions relating to that product and also seek independent financial, legal and taxation advice.