Cash flow is arguably the most valuable money management tool. It is used in concert with net wealth and balance sheets to develop a successful money management planning strategy. Budgeting, systematic savings, debt payments are all part of our cash flow.
Cash flow is a comparison of money in versus money out. If net worth is to grow, money in must be higher than money out. Though simple in principle, this is seems to be difficult in practice. For example, the concept of “burn more calories than you take in” is simple concept as well, though as a society we seem to have just as much trouble with it. [Read more…] about What is Cash Flow?