What does the black line that runs across the cash flow chart represent?
The cash flow chart will always show total (gross) inflows and total outgoings.
The black need line is intended to show the portion of the inflows that is allocated to expenses and savings. Its position is based on expenses, taxes, and planned savings/investments that are realised in a given year. This is total allocated income.
Any unallocated surplus is shown above the need line. Unallocated surplus may be deposited by default into the owner's cash account (e.g. John's Cash) or considered spent, depending on the nature of the inflow (whether habitual or lump sum), and the software's calculation settings. Read more >>
The optional basic need line (in light blue) will show the portion of these inflows that are being used to cover only basic expenses and taxes. The basic need line is exclusive of leisure, luxury, milestone and legacy expenses as well as contributions to pensions, savings and investments.