Trade The Journey

Trade The Journey

My Favorite Subject: CASH FLOW

Cash Flow is the most important aspect of governments, economies, and the health of the world economy. Without a flow of cash to cover your expenses, debts, investments, and savings, we’d have a rough time.

Of course we understand that money is a commodity, a psychology, a means of trades and storehouse of value. Its value constanly fluctuating buying less in some climates and purchasing more than its worth in other times. Because no two days are ever alike, our need for it constantly fluctuates depending on the situation.

Catastrophes catch us at a bad time and opportunities never seem to come at the right times. When we do spot the opportunity, our hesitation prevents us from taking advantage and in most cases, it is our cash flow. We have failed in the management of our cash flow. We failed to consider that, our cash flows consistently fluctuate and that in order to be successful in managing money, we have to fluctuate as well.

I still continue to make mistakes but I am getting better at anticipating what the week will look like and the expenses that will arise thorughout the week. The key is to know when your income will fluctuate and by how much. You have to decide when credit will be best to use in order to maintain liquidity and when it is not.

Credit is a tool that can be adapted to your cash flow tools by managing it correctly and using it to increase your credit score and gather points. Unfortunately, I’ve allowed my credit to accumulate close to the 11% usage factor in which it will affect my credit score after 11%. 

Before it hits 11%, I will pay it down to increase my credit score. Yes, I track my credit score regiliously. Whatever works for you. But with the uncertain economic times looming, Liquidity should be the primary concern.

There will be opportunities in the destruction and rebuilding phase for profits.

Thoughts?

Leave a Comment

Your email address will not be published. Required fields are marked *