Guide
How to build a cash flow calendar for your household
A cash flow calendar shows what your balance will be on each day of the month, not just at the end. Here is a simple way to build one, and how to spot a shortfall before payday.
What a cash flow calendar is
It is a calendar where every day shows the money you expect to receive and to pay, and the balance you will have once that day is over. Instead of asking "how much will I have left this month?", you ask "will I have enough on the 4th?"
Why a monthly total is not enough
A monthly budget can look healthy while your account still runs dry in the middle of the month. If rent leaves your account on the 1st but your salary arrives on the 5th, the total for the month is fine, yet the days in between are tight. A daily balance shows exactly those days.
Build it in five steps
- Start with your balance. Write down what is in your bank account and cash on the first day you want to plan from.
- List your income with dates. Salary, benefits, rent you receive. Note the day each one arrives, not just the amount.
- List your bills with dates. Rent, utilities, loans, subscriptions and insurance. Fixed payments repeat every month, so you only need to enter them once.
- Add everyday spending. Groceries, transport and eating out do not have a fixed day. Spread a realistic amount across the month, for example one shop a week.
- Walk through the month day by day. Add and subtract in date order and write down the balance at the end of each day. The lowest number is the one to watch.
An example
Say you start the month with €900. Rent of €750 leaves on the 1st, groceries of €85 on the 4th, and on the 5th you pay utilities of €120 and receive a salary of €2,400.
Your balance is €150 after the 1st, €65 after the 4th and €2,345 after the 5th. The lowest point is €65, on the 4th. An unexpected bill larger than that during those days would overdraw your account, even though you finish the month well ahead.
Spreadsheet or app?
A spreadsheet works fine if you enjoy building one. The catch is the upkeep: you have to re-enter fixed bills every month and recalculate every row when something changes. DKPlanner does the arithmetic for you. Repeating entries are added once, the calendar shows the projected balance on every day, and your partner or family sees the same budget. It is free, with no ads and no bank login.
Related guide: How to know if you will run out of money before payday