Real cash flow management involves understanding where your money comes from, where it goes, and what choices are appropriate in achieving goals and living your best life.\r\n\r\nYour cash flow includes:\r\n\r\n \tIncome\u2013salary, bonus, hourly, self-employed, passive or investment sources.\r\n \tFixed Expenses\u2013costs over which you have little monthly control. For example, rent, mortgage, and utilities; the bills come in every month\r\n \tDiscretionary Expenses\u2013you make choices and therefore, more control can be exerted. For example, you can shop at discount stores rather than premium name brand stores\r\n\r\nCalculate the Net Cash Flow\r\n\r\nAdding your total income and expenses creates your personal cash flow statement. This is a component of budgeting. This helps you see a clear picture of your monthly finances.\r\n\r\nSubtract your total monthly income and total monthly expenses and you can calculate your Net Cash Flow.\r\nTotal Monthly Income \u2013 Total Expenses = Net Cash Flow\r\nIf your net cash flow is positive, then you have extra money to put towards your financial goals. If your net cash flow is negative, it may be time to cut back on expenses and increase income.