What is Cash-Flow Timing?
A budget can balance for the month and still run short on particular days if large bills fall due before the income that pays them. A week-by-week cash-flow budget carries each week's ending balance into the next week.
Check the weeks, not only the month: each week's ending balance is the next week's starting balance.
Mai's month (illustrative)
- Month-end change
- +$550
- Week 2 ending balance
- −$290
- If rent is split $550 + $550
- $260Week 2 ending balance; total spending unchanged
Not the cash flow statement
This is about personal timing. A company's cash flow statement is a different report.