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Cash flow is the total amount of money coming into and going out of your bank account over a period of time. Positive cash flow means you have more money coming in than going out.
In Depth
Cash flow is a fundamental concept in personal finance, representing the net amount of cash and cash equivalents being transferred into and out of your finances. It's often measured over a specific period, like a month. Understanding your cash flow helps you see if you're living within your means, saving money, or accumulating debt. Managing it effectively is key to financial stability and achieving your financial goals.
Example
After paying all her bills, Sarah had $500 left over, indicating a positive cash flow for the month.