Cash Flow

Personal Finance

Personal cash flow is the difference between money coming in (income from paycheck, side hustle, investments) and money going out (rent, debt payments, groceries, taxes) over a period — typically a month. Positive cash flow means you can save and invest the surplus; negative cash flow means you're depleting savings or accumulating debt. Tracking cash flow is more revealing than net worth on a month-to-month basis because it shows whether your financial trajectory is improving. Many high-income households run negative cash flow because lifestyle creep matches every raise. The goal: positive cash flow with intentional allocation of the surplus.