Understanding Your Cash Flow
Goal
By the end of this lesson, you’ll understand the flow of money in and out of your life.
What is Cash Flow?
Cash flow is simple: money in, money out. Your income is money in. Your expenses are money out. The difference is what you have left to save, invest, or pay down debt.
Step 1: List Your Income Sources
Write down every source of income you have:
- Paychecks (after taxes)
- Side gigs or freelance work
- Refunds, reimbursements, or cash back
- Any other money that regularly comes in
Step 2: List Your Expenses
Look at your bank statements for the past month. Group your spending:
- Fixed expenses — rent, car payment, insurance (same every month)
- Variable expenses — groceries, gas, dining out (changes month to month)
- Periodic expenses — annual subscriptions, car registration, gifts (easy to forget)
Step 3: Calculate the Gap
Income minus expenses = your gap. If it’s positive, you have money to work with. If it’s negative, you’re spending more than you earn — and that’s exactly what Roo helps you fix.
Key Takeaway
You can’t manage what you don’t measure. Knowing your cash flow is the foundation of every financial decision you’ll make.