Cash Flow Diagram

Cash flow diagram is used to find out where your money go to when you got your pay. The above is the cash flow diagram that I have designed for myself. Of course, I have taken out the exact amount in each item.

Cash flow is basically what you get after deducting your expenses from your pay. Those people who have a lot of liabilities are more likely to have less cash flow or even worse, negative cash flow. Remember in my last post, I say reduce your liabilities and increase your assets is the way to be rich!!! I have put part of the money in cash flow to saving and another part into buying assets.

Re-investment of money received from the passive income is very important. By doing that you can compound the growth of your money . If you do it properly, you can achieve financial freedom faster.

I also draw out My Cash Flow Framework , which has more details than my cash flow diagram.