Living Paycheck-to-paycheck? Be your own CFO!

Posted by Jay Castillo | 10/19/2008 04:39:00 AM | , , | 0 comments »

I've said to myself before that I would be a lot better with my finances if I would only treat my personal income the way a CFO would manage the finances of the company he/she works for. Imagine if you tracked your income and expenses and know at any given time your net cashflow for the month. Personally it was really hard at the start but with the right tools and mindset, I was able to do it.

Anyway, to get you started, why not try reading Flexo's explanation on how he’s become the Chief Financial Officer of his own life.

More than a year ago, this inspired me to start using MS Money to track and manage my own finances. It only took me a month to go from living paycheck-to-paycheck to having a positive monthly cashflow. After a year, i can confidently say that I have managed to save at least 25% of my total income, which are now in various investments. The breakdown of where my income went to is summarized below.

I'll make another more detailed post about this in the future.

Tell me if you found this as helpful as I did!