One of the first steps toward managing cash flow is detailing your cash sources and uses. To get a handle on cash flow, Houston Financial Advisors Richard J. Alphonso, J.D., CPA, M.S.T. and Steven A. Estrin, M.B.A., recommend that you make a list of your monthly sources of income and your monthly expenses. Then, create a matrix of your income vs. your expenses on a monthly basis.

Strive to keep your monthly cash outflow (for expenses) less than your monthly cash inflow. This is referred to as keeping your finances "right side up." As soon as you’re able to achieve this with some consistency, include monthly savings and investments in your cash flow matrix.