Will I have enough money next month?
Line up what comes in and goes out, week by week.
- For
- See the lowest week ahead, while there’s still time to move a bill.
- When
- Every Monday, in five minutes
Try it
3,000 in the bank, 2,500 in and 2,300 out a week, a 4,000 bill in week 6: down to 200.
Each week = the bank + what came in − what went out, so far.
Look 13 weeks ahead, not at today’s balance.
Worked out
| The bill | Lowest week | Lowest balance |
|---|---|---|
| 0 | Week 1 | 3,200 |
| 2,000 | Week 6 | 2,200 |
| 4,000 | Week 6 | 200 |
| 6,000 | Week 6 | −1,800 |
Easy to get wrong
- Looking at today, not the weeks ahead.
- Forgetting the once-a-year bills.
- Counting money before it’s paid.
- Seeing the low week too late to move.
The tool for it
Questions
What goes in?
Money you’re owed, in the week it’s likely paid, not when it’s due.
What goes out?
Wages, parts, rent, loans, tax, and the yearly bills in their week.
Why 13 weeks?
Three months: far enough to see a low week, near enough to guess.
What if a week goes below zero?
Move a bill, chase what you’re owed, or ask for a deposit.
Should I count work I’ve quoted?
Only once it’s booked, and at less than the full price.
How often do I update it?
Once a week, with what really came in and went out.
How much should I keep in the bank?
At least a month of what goes out. Choose your own number.
Is this the same as profit?
No. A busy month can still run short when the money comes late.