Episode 3: The Power of Cash Flow

In this episode, we are going to discuss how cash flow can be your best friend or worst enemy. The key to making sure your cash flow is always on your side is to make sure you are doing the right things with the money you have.

What is Cash Flow?

Cashflow=Lifeblood of Business or Finances.

Cash flow represents the movement of cash in and out of the business or personally in and out of your bank account. It is fundamentally not profit. It is not what you earn, but essentially what you keep.

It is mathematically impossible to get ahead with a negative cash flow — in order to save money, in order to pay off debt, you must earn more than you spend. To gain wealth, you must spend less than you earn. This is the fundamental law of money. Framed in terms of a mathematical equation:

[WEALTH] = [WHAT YOU EARN] – [WHAT YOU SPEND]
This formula tells us two things:

If you spend more than you earn, you are losing wealth — you have a negative cash flow. If you spend less than you earn, you are accumulating wealth — you have a positive cash flow.

Every outflow is not an expense

Have you properly evaluated your cash flow? Are you in a positive or negative balance? Listen more Power of Cash Flow.

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