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Monday, January 31, 2011

355. Cashflow

"Cashflow" is the most important word in the world of money. Cashflow - the flow of cash.

Cashflow can be positive - i.e. you have more cash coming in than going out. This is always a good thing. Negative cashflow is when you have more money going out than coming in. This is a bad thing, it leads to debt and misery. Neutral cashflow - the same amount coming in as going out (also known as red-lining) is also a bad thing. It is stagnation as the value is being eroded by inflation,

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