Section 1 - Instruction

Welcome to Personal Budgeting Mastery! Your financial journey starts with one simple but powerful concept: cash flow.

Cash flow is just the movement of money - what comes in and what goes out of your bank account every month.

Engagement Message

How would you define cash flow in your own words?

Section 2 - Instruction

Think of your finances like a bucket. Cash flow has two parts: money flowing IN (like water from a hose) and money flowing OUT (like holes in the bucket).

If more flows out than in, you'll eventually run dry.

Engagement Message

Can you think of one way money flows into your life?

Section 3 - Instruction

Here's why understanding cash flow matters: you can't budget effectively without knowing these numbers first.

Many people guess their income and expenses, then wonder why their budget fails. We're going to get the real picture instead.

Engagement Message

What happens when people don't track their spending?

Section 4 - Instruction

Let's start with money IN - your income. This includes your salary, but also side hustles, freelance work, investment returns, gifts, or any other money you receive.

Even $20 from selling old books counts!

Engagement Message

What's one income source besides your main job?

Section 5 - Instruction

Now for money OUT - your expenses. These fall into two categories: fixed expenses (same amount each month) and variable expenses (amounts that change).

Fixed: rent, insurance, loan payments. Variable: groceries, gas, entertainment.

Engagement Message

Which category does your phone bill belong to?

Section 6 - Instruction

Here's a simple example: Sarah earns $3,000 monthly from her job plus $200 from tutoring. Her expenses total $2,800.

Her cash flow: $3,200 in, $2,800 out = $400 positive cash flow.

Engagement Message

Is positive or negative cash flow better for building wealth?

Section 7 - Instruction

The goal isn't perfection - it's awareness. Once you see your true cash flow picture, you can make informed decisions about spending, saving, and reaching your financial goals.

Knowledge is power when it comes to money management.

Engagement Message

Ready to practice identifying cash flow components?

Section 8 - Practice

Type

Sort Into Boxes

Practice Question

Let's practice identifying cash flow! Sort these financial items into the correct categories.

Labels

  • First Box Label: Money In
  • Second Box Label: Money Out

First Box Items

  • Salary
  • Side hustle
  • Tax refund
  • Gift money

Second Box Items

  • Rent payment
  • Groceries
  • Gas bill
  • Coffee shop
Next
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