Any cash flow definition is best explained by referring to our "Cashflow Pipe". That's because you cannot "see" cashflow. And regardless of how hard I try, I can't "show" it to you.
I use the Cashflow Pipe simply to make understanding these concepts easier. Click here to learn more about my Cashflow Pipe
Cash flowing into your account
The inflow to your account is the total amount of money you receive monthly... regardless of how or where you get the money.
Cash moving out of your account
In a similar way the outflow of cash from your account is the total amount of money monthly leaving your account. And what's worse, it doesn't matter how the money disappears or where it goes.
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Practical Cashflow Definition for Everyday use
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Although you cannot "see" cashflow it doesn't mean it doesn't exist. The best proof it exists is -- simply calculate it!
So, let's say you have a job. And at the end of each month a salary "flows" through our pipe into your account.
You verify that the salary was paid by simply looking if there's more money in your account. Now, simply subtracting the balance in your account before the salary was deposited from the current balance, you know how much cash flowed into your account.
Sticking to our cash flow definition it means that money "flowed" from your employer's account to yours. Your employer's now has less money in his account. And you have more. Click here to learn about your cashflow pipe
Also, once you start buying things and spending money you take money from your account. In other words... cash flows out of your account. And you end up with less money in your pocket.
So, our cash flow definition simply means that you got money flowing into your account by doing some work for your employer. And you let money flow out of your account by spending it.
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This brings us to the most important truth of this site...
Everyone fully controls how much money goes into his pocket. And also how much money leaves.
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Although you may not realize this now, but there is a way to get money flowing into your account WITHOUT working for it. Click here for the answer
Cash flow definition >> How to get more money in your pocket WITHOUT working harder
Source : http://www.cashflowclever.com/cashflowdefinition.html
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