Net Cash Flow

Net cash flow is the difference between the money a business or individual receives and the money they spend over a specific period. It shows whether you are gaining or losing cash, helping to understand financial health. Positive net cash flow means more money is coming in than going out, indicating good liquidity. Negative net cash flow means expenses exceed income, which could signal potential financial issues. Tracking net cash flow helps in making informed decisions about spending, saving, or investing to ensure future financial stability.