Personal Cash Flow Management Wealth Building Formula

By Pinyo, on April 29, 2010

There are a lot of information about how to get rich, build wealth, achieve financial freedom, etc. But when you take a step back and look at the big picture, it all comes down to better cash flow management — earn more and spend less — personal finance in one simple equation!

Obviously, this is nothing new. Cash flow as a business concept has been around for a long time. You commonly hear about this as profits and losses. Another area where cash flow is important is in real estate investing. A good investor knows how important it is to know the costs of owning a property and have a positive cash flow.

To help you maximize your personal cash flow, here are some good articles from around the web.

Earn More

• Improving Cash Flow with Passive Income — A nice overview of passive income, the reality of creating these income streams, and some wise warnings.
• An Intro to Passive Income, Popular Ways of Getting It and the Mindset You Need to Start Creating It — Another great article about passive income with some great advice.
• 5 Tips for Making Extra Money — Need some strategy to help you identify money making ideas? Here are some tips to help you.
• Quick Cash: 6 Ways to Put a Little More Money in Your Wallet — If idea generation is not your forte, here are six specific ideas to help you get started.

Spend Less

• Where Is All My Money Going?!?! — Do you ever wonder where all the money went? This articles help you analyze your spending, plug up money leaks, and help you spend less.
• How To Build Wealth By Spending Money Wisely — Here is an entertaining article to help you spend more wisely and make the most of your money without sacrificing your quality of life.
• Spending Money Wisely — Here is a nice story with a reflection on spending.
• Get Your Plan to Eliminate Debt and Save Money — Debt is a major enemy of the cash flow strategy since interest payments represent a major money leak. Here is a good article to help you get out of debt and improve your finances.

To sum it up: earn more than you spend and you’re building wealth, but spend more than you earn and you’re accumulating debt. By improving your cash flow, you’ll have more flexibility to pay down your debt even faster, or put more money toward wealth building.

Good luck!

Leave Your Comment (3 Comments)

1. Keith says:

   April 29, 2010 at 11:27 am

   This is such a simple concept. If only it were so easy.

   Reply
2. Stephan says:

   April 30, 2010 at 9:09 am

   sucha simple concept, that really everyone should already know. If they had known it, then our savings rate wouldnt have been negative for years before this bubble burst. Hopefully we all learn something from what happened and will start to save money for the next inevitable economic downturn!

   Reply
3. Rich Uncle EL says:

   March 6, 2013 at 3:23 pm

   Thanks for the cash flow tips, I will check the other links to see if I can find out more in depth content.

   Reply