Make friends with your budget. Create one from scratch and keep refining it. Always live within it - this will make you disciplined about money. Your budget is your first line of defence against poverty. Without one, hou have no hope of avoiding red-lining. Keep your budget under review, line by line and week by week. It is not enough just to create it and file it away. It must be a document that you live by.
Showing posts with label red-lining. Show all posts
Showing posts with label red-lining. Show all posts
Sunday, May 15, 2011
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,
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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