“If your outflows exceed your inflows, your upkeep will be your downfall.”
Cash flow is the fundamental prerequisite for everything you do; without cash flow, nothing can be accomplished. Your cash flow can be defined as the increase (your income) and decrease (your total spending) of cash over a period of time, such as a month. As the quote above points out, if you have more going out than coming in, you will eventually be left with nothing.
Proper cash flow management can be achieved using tools such as personal budgets, family cash flow statements and appropriate financial instruments including: bank accounts, mortgages, lines of credit and RSP loans.
By utilizing the appropriate instrument(s), you can increase the efficiency of your cash flow and create the foundation from which you can build your financial dreams. These include: