Greetings and welcome…. last week we talked a little bit more about assets, today we would talk about cash flow.
Isaiah 55:2 TPT
[2] Why spend your hard-earned money on something that can’t nourish you or work so hard for something that can’t satisfy? So listen carefully to me and you’ll enjoy a sumptuous feast, delighting in the finest of food.
https://bible.com/bible/1849/isa.55.2.TPT
As you journey on in your financial education, you become more and more literate. This literacy will have to do with words and numbers, especially with regards to money. One very important set of words you should understand is “cash flow”.
When an asset or your mind or your job/business/investment puts money into your hands, the question is, where does it go? Where does the cash flow? Let’s look at the following illustration for clarity.
It is obvious that cash flows into two columns: the asset column and the liability column. It is important for you to influence your cash to flow into the asset column. Although, liabilities cannot be avoided, a sizeable portion of cash flow should be to acquire more assets. This control can determine if you will live in the surplus or in want. It usually distinguishes the rich from the poor. The rich have more assets and the poor, more liabilities.
Please note, this diagram is not the same for everybody. The financial education you have received will determine the direction of the arrows. For some, the arrow from the liability column will point to the asset column which then points to the income column. For many others, no arrows will be seen pointing at the asset column.
Remember, it begins from the mind. So, what is the direction of your arrows?
First published 23/04/2023.
