DayCents

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 movie of how you got there. Improving it comes from two levers only — earning more or spending less — and even a small positive monthly gap, invested consistently, compounds into real wealth.