Cash flow is how money flows in and out of your account and/or business
Why It's Important
Cash flow is crucial to financial freedom. If you aren't sure how money is coming in and going out, it is virtually impossible to get your financial footing. You will always blow in the wind without making any headway on goals. A budget is an absolute necessity to help you figure out cash flow. Let me give you an example...
I was speaking with a client not to long ago and they did not have a budget. We sat down and put all of their numbers in black and white. Not only were they making more than they thought, they were also spending more than they thought! We found that they were spending a TON on insurance policies and the cash flow wasn't there to cover it. My recommendation: Get rid of some insurance policies to free up monthly cash flow. Once they did that, they immediately had more money to pay off debt and/or save. It's that simple!
So, your homework for this week is to create a budget so you can see your cash flow in real life! It is much different than trying to do it in your head. If you already have a budget, I challenge you to cut out a non-necessity and put that amount every month towards debt. If you don't have debt, I challenge you to put it towards savings.
Here is a whole video to get you started!