This is an improvised version of the Cash Flow Management System I designed earlier in 2008.
Meshio Cash Flow Projector allows you to predict the future of your cash flow.
Inspired by PocketSmith.com’s calendar-based cash flow projection system, this improved Excel-based template allows you to project your cash flow months in advanced. Instead of calendar based, this spreadsheet is based on categories. Just download it and give it a go. You should personalize the spreadsheet according to your needs. I have tried to make it as self-explanatory as possible but do drop me a question here if you have problem understanding the spreadsheet.
Download the Cash Flow Projector (34.5 KB)
The spreadsheet begins with a few default figures I’ve keyed in, just as an example. Once January is over, you should key in the actual figures as per your banking transaction statements. This act is also called ‘reconciliation’. Reconciliation is an act of synchronizing your personal transaction records with the bank’s. You normally perform a reconciliation to ensure that there’s no discrepancies in the bank’s transaction, for example, to spot any unauthorized withdrawals.
If you are not careful enough, you might just be the next victim of the One-Cent Thief. I wouldn’t mind any unauthorized deposits though. A friend who previously worked in HP (Malaysia) was shocked to find an extra RM10,000 in his bank deposited by his employer.
In the past, I focused more on tracking the transactions and the historical data. Again, I have to thank Jason of PocketSmith.com for showing me the ‘power of projection’. By projecting your cash flow at least 6 months down the road gives you a good sense of direction of where you are heading in the cash flow game. It’s not precise, but that’s not the point. The whole projection exercise is to ensure that you are doing the right things to avoid potential ‘financial accidents’. An extrapolated cash flow projection provides you with a benchmark that can help you in achieving your financial goals.
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