Cash Flow
Cash flow is the money coming in versus going out over a period. Positive cash flow — income exceeding expenses — is what funds saving, investing, and debt payoff; negative cash flow means you're drawing down savings or adding debt to cover the gap.
Net worth is a snapshot; cash flow is the film of how you got there, and the two can move in opposite directions — a household can be building equity in a home while running short of money every month. Only two levers change it, earning more or spending less, but they are not equally available: cutting has a floor set by your fixed costs, while income has no ceiling. Timing matters as much as the total. A month can end positive and still fail if a large bill lands before payday, which is what sinking funds and a small buffer exist to prevent. Even a modest positive gap, invested consistently, compounds into real wealth.
Put it to work
50/30/20 Budget Calculator
Split your after-tax income the 50/30/20 way — needs, wants, savings — with monthly dollar targets and the yearly savings it produces.
Net Worth Calculator
Calculate your net worth the way advisors do: everything you own minus everything you owe, with your debt-to-asset ratio as a health check.