Creating Your First Personal Cash Flow Statement

Monitoring finances is a serious obligation to all earning money.  Even rich and wealthy people, manage their money very well.  But how about those earning in modest?  What about those who earned in averages?  Is preparing personal cash flow statement is an alien activity?

Preparing personal cash flow statement is not a rocket science activity.  It's a simple addition and subtraction.  No fancy financial terminologies.  Just a detail of your income, investments, and all of your expenses.

Personal Income and Expense Statement

The most proper term of preparing personal cash flow is PIES (Personal Income and Expense Statement).  PIES is a simply a statement you will record your cash flows in and cash flows out.  Here are the sample of PIES that you may start.  You can create your own using Excel:

Income/Expenses Cash Flow In Cash Flow Out
Salary (December 15, 2015) P12,000.00  
Savings/Investment   P3,500.00
Meralco   P1,500.00
Manila Water   P200.00
PLDT/DSL   P1,500.00
Grocery   P2,000.00
Allowance   P2,000.00
Net/Excess P1,300.00  

Table 1.0:  Example PIES of a salaried employee earning P24,000.00 monthly

As you see, a simple budgeting activity.  In this example, we can easily identify the allocation of our salary.  At the bottom of the table where net/excess row, we can identify if we can have an excess money for other expenses like movie dates with friends, dinner, and other purchases, since we already allocated a budget for savings and investment.

Not a Rocket Science… Just Building a Good Habit

I hope you already concluded that preparing PIES every payday is a not for corporate activities.  Always remember, we are always the CEO in a largest corporation, OUR OWN SELF INC.  As the CEO we have to make sure we're having the best record management in our finances.  And creating PIES every payday will make a good record of our finances.

"Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time."

–Johann Wolfgang von Goethe

For any question about creating PIES and SALN (Statement of Asset, Liabilities, and  Networth will be in the next article), you can drop any comments or reach me thru contact us.


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Eleison Cruz

Financial Consultant. Personal Finance and Investment advocate. Author of The Good Asset, a blog that educates people in investments, financial literacy, and life insurance. Visit

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