HELLO HIVE

A very important term in finance and business that individuals don't pay a close look at,determines how financial health you are no matter the perspective you see in from.

What is cash flow?

For an individual- it shows how much is moving into your account and also flowing out too.

For an organization or business- it is how much money that flows in and out of the business or organization.
The subject money is a topic that you cannot complete studying no matter how many years you spend studying it .

There is a financial cash flow curve where you can have either a negative or a positive cash flow .

Now what is a Negative cash flow

This means your expenses goes beyond (exceed)your income funds .before the time of the global recession many people began to see how dangerous it could be to stand on this part of the curve ,if you're to survive this you have to know where your income is coming and you have to understand what you are spending them ,then you can understand how to manage your spending.

How do you know your cash flow

You have to substact your monthly cash outflow from your monthly cash in flow if you have a negative value then you have a negative cash flow which shows that you have a lot of work to do,either you increase your income to balance the book or reduce your spending.

You can do that by spending more on what you need more at this point other than what you want .

Positive cash flow - when your cash flow in is more than your cash flow out and this is the ideal scenario for a healthy financial condition.

So as much as you spend you have to work on what your income are .

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