22 June 2011

Why Managing Cash Flow is So Important to Your Investment Process? - Part 5


In Part 1 - Part 4, I have explained the reasons why managing cash flow is important to your investment process, now I continued with the cash flow in between the circles - E, S, B and I.

Below are the cash flow movement in between 3 circles that I mentioned in Part 3. You can have a look on the cash flow movement below. The cash flow can be used in between the 3 circles so that a cash flow can be generated and used from / to any circles and remain healthy.

A person in Circle S, B, I. For Example, Full Time Business, Part Time Self Employed and Investment
A Person in B, S, E. For example, Full Time Working, Part Time Self Employed and Business.
A person in S, E, I. Example: Full time Working, Part Time Self-Employed and Investing.
A Person in B, E, I. Example: Full Time Working, Part Time Business and Investment.
We can create a spreadsheet to record down all the cash flow movement from each circle to another circle so that we can ensure that the cash flow is running in healthy way. In next and the last part, I shall share with you on how we can just use a spreadsheet to monitor/manage the cash flow movement in our investment process in details.

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2 comments:

  1. like ur post!!! thx so much

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  2. Thanks. Please help me to share it with your friends. Have a nice day.

    ReplyDelete

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