To effectively manage cashflow, you need to know where your money is going. Once you know what you're spending (and where), you can then modify your behaviour to increase your savings.
A cashflow budget is an essential part of any financial plan. It helps you understand what cash will be available to meet expenses over a certain timeframe, usually 12 months.
It allows you to:
Just as important as creating a cashflow budget is reviewing it – regularly – because external events can always crop up that will not be in line with what you planned for.