A Better Way to Manage Your Everyday Money - Book - Page 51
Chapter 5: Net Cashflow
Cashflow is income and expenses over a future period of time. Cashflow is normally measured
on a monthly basis. Net cashflow is the amount of cash remaining after expenses are subtracted
from income as shown here:
Your net cashflow is the measure of how well you are managing your household finances.
● A positive net cashflow (in the black) indicates
that your income is the same as, or more than
your expenses. You are living within your
means.
A consistently positive net cashflow over the
coming months could indicate that you have
extra income available to put toward your
financial goals.
● A negative net cashflow (in the red as shown at
right) shows that you plan to use more money
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