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Showing posts with label neutral cashflow. Show all posts
Showing posts with label neutral cashflow. Show all posts

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,