Cash flow- Cash flow positive, Cash flow negative

Posted Mar 03, 2009 by tren123 / comments 0 comments / Print / Font Size Decrease font size Increase font size

cash flow come positive and negative and most people will just come out nagative.

Cash flow has to be one of the most important words in finance. One of the reasons for this is because cash flow has the power to make you rich or make you poor. Cash flow has the power to eat you or to feed you. It has the power to give and to take. So what is cash flow? Cash flow is money coming in over a period of time. So when you make money not all at once, but over time, you are making what’s called cash flow. So for example lets say you make $1,000 per month. Well that is cash flow you making. However if you make $1,000 not monthly but just all at once you are not making cash flow but instead your just making money. So for another example cash flow is when someone pays you $1,000 (or however much) monthly, or yearly, or weekly, or even daily, instead of giving you $1,000 as a gift. So you get the $1,000 over a period of time. However there is also another form of cash flow that even fewer people know of and it is called negative cash flow. You might be able to guess what negative cash flow is now that I have given you the definition of cash flow, but just in case you can’t, I better tell you the meaning anyway. Negative cash flow is when you lose money over a period of time. So in a way negative cash flow is the exact opposite of cash flow, which can now be called positive cash flow. So in other words when you make any amount of money (Ex. $1,000) over any period of time (monthly) you make positive cash flow, but if you lose money (Ex. Through bills) in any amount ($-1,000) over a period of time (Ex. monthly) you are making negative cash flow. The most common form of negative cash flow is paying off a mortgage, or a loan. The most common form of positive cash flow is through paychecks. Paychecks that any persons will receive through their job. You see most people only think that there is one why to make cash flow/ positive cash flow and that is through their job, but that is only one form of cash flow that is called active income. (Which I discuss in a earlier article called “Active income”.) They think that their one type of income and they don’t realize that it is that type of thinking that keeps them in “The Endless Cycle”. (which I talk about more in another article.) This thinking will keep them in a cycle of going nowhere or as I like to say “you get nowhere real soon” in “The Endless Cycle”. I think that the first step to getting out of that cycle and into the rich club is to number one change your thinking. First I believe that the rich think differently from the poor. So to think like them and to have their mind set you must first learn how they think. You can do this through emitting what they did to become rich or learning about them. I know that there are many ways of becoming rich but the first thing to do is to gain financial education. Also like I said I know there are many ways to become rich, but most of those ways are clouded from common knowledge. The only thing not clouded from common knowledge is how to become poor. I believe it is real easy to become poor but real hard to become rich especially if you already have things holding you down like bills, and when your financial situation is not good. Though it is real easy to become rich if you have financial education and the right mind set and when you see through the fog that everyone else can’t see through to see the opportunities behind them. At any rate as I mentioned cash flow can be positive or negative and the rich thrive off of positive cash flow going into assets instead of liabilities. (I talk about them both in a different article.) While the poor and middle class get ate at by positive cash flow going into negative cash flowing houses and other liabilities that are paid for through negative cash flow. I believe that people that want to have the income that the rich has must first concentrate their efforts on getting the right mindset then concentrate on the next steps. Also if you have anything you wish to say to me please do not hesitate to E-mail me at Trenzel123@yahoo.com. I will get back to you if I can. Also if you like this article please take the time to look through the others I made Via my profile page. Thank you for your interest and have a wonderful day.

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