What is cash flow?

    Published: 06-16-2009
    Views: 8,433
    Financial expert Kandance Beamon explains cash flow as the amount of money left over after all your expenses.

    Speaker: What is cash flow?

    Kandance Beamon: Cash flow is the amount of money leftover after all expenses have been paid. So the way you can calculate your cash flow is to subtract all of your expenses from your income and that amount of money that's leftover that's actually how much cash flow you have on a monthly basis. If you feel that the amount of cash flow is not enough or is not enough to cover those expenses or if you are finding that your cash flow is ending up in the negative, then what you want to do is look at ways to supplement your income and you can supplement your income again through, I am coming up with a part-time job, finding part-time employment or a seasonal employment maybe. You are going to be looking at if you have a special skill, maybe it's the way that you can market that skill in order to bring in additional income. May be your neighbors need a babysitter and if you have the time in afternoon that you can babysit to bring in extra income that's excellent way to make more money. Maybe you are an excellent cook or baker and you can self-cake, that's excellent way to also bring in additional income or looking at overtime with the employer is a possibility for you to pick up an extra shift or maybe work a couple of hours, additional every week in order to bring in more income. But what you want to make sure is that you have positive cash flow and that means having enough money left over at the end of each month that can be saved and put towards those purchases that you dream about such as purchasing your own home, purchasing that automobile that you have been looking at or taking the family on a dream vacation. But you really want to make sure that you have enough income coming in to cover those expenses that are going out and that will be a positive cash flow.