Cash flow
Names and abbreviations on this page
CFPB — Consumer Financial Protection Bureau. United States regulator for consumer financial products.
What it means
Household cash flow describes money coming in and going out over time. Both amount and timing matter. Writing income and expenses in separate monthly columns can hide a problem: Tuesday's payment may be due before Friday's wages arrive.
Related skills
Map datesPut income and bill due dates on a calendar.
Track balancesCarry each period's ending balance into the next.
Make adjustmentsReview spending and ask whether a bill date can be changed.
An everyday example
Starting with $200, receiving $900 and paying $800 leaves $300. But if the $800 payment is due before the $900 arrives, the timing creates a shortage despite that later ending balance.
What to check
Use take-home income and include irregular expenses. A credit limit is borrowing capacity, not income available without repayment.