Cashflow for personal finances, is nothing else but as circulating va money in your pocket or bank account, both as exited as I finishing as it enters as income, and meets their needs and which is the net result of all these operations over time. During 2003 to 2005, I attended the masters in finance at the IESA, and one of the areas that attracted me was that of finance for entrepreneurs, dictated by an excellent teacher and member of the Centre for entrepreneurs at that institution. Such matters were 4 fundamental topics of which the most important in my view was: the cash flow. I remember that we often said: the cash flow is the blood of business. It lacked a say that cash flow is not only the blood of business but also of personal finances. A person with a defective cash flow is a person who succumb to an army of creditors that will not leave you in peace.
A person with a defective cash flow sooner or later collapse economically. The cash flow both for people and for businesses has three components: Positive cash flows (FC +): which are the income that the person receives generally is given for salaries, wages and other income generated in the employment relationship of the company where he works (night bonus, overtime, utilities and others). If the person is independent then the positive cash flows are all revenues derived from their fees you receive. Negative cash flows (FC)-: which are expenses that has a person, i.e., expenditure which should make a person over a specified period. They are an example of negative cash flows: expenditure on power and market, light, gas, water, electricity and telephone expenses, expenses for education of the same person, their spouse or their children, costs of transport, medical expenses, costs of debt and finally, all those expenses that has the person over a specified period.
(FCN) net cash flow: net cash flow is obtained from subtracting cash flows negative to positive cash flows. I.e. the FCN = FC positive negative FC formula would be applied. If net cash flow yields a positive result, we say that the person has a positive net cash flow. If net cash flow yields a negative result, we say that the person has a negative net cash flow. M.S. Felix Gonzalez j.