The importance of Cash Flow by dana-edwards

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· @dana-edwards ·
$50.23
The importance of Cash Flow
Cash flow is the magic behind wealth building
===

The movement or flow of cash into and out of a business is cash flow. Just as fuel flows through an engine, or glucose flows through a biological organism, cash flows through a business. 

To be financially healthy is to have more cash coming in than going out. This could be more fash flowing into your possession as an individual. This could be more cash flowing into the possession of your family as a group. This can be more cash flowing into your organization or business. As long as the cash flowing in is increasing and the cash flowing out is decreasing then you've got a healthy situation from a financial perspective.

Cash flow is the magic because it makes everything else possible. If you're seeking investment and you have good cash flow then people will want to invest in you, or your business. 

A business takes cash as input, uses that cash to produce some product and or service to satisfy the demand of a customer, if the customer is satisfied then it's a positive transaction because value has been created, and the rest is profit for the business. So if a business has a lot of cashflow which shows a lot of money coming in, but products are going out, customers are satisfied, and not a lot of cash is coming out, then this is a sign of an efficiently run business operation.
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@niallon11 ·
$1.90
Its important to have multiple streams of income as well. If you are dependant on just one type you are in danger of it collapsing. If you have multiple at least if one goes then the others can keep you afloat.
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@wesleyclark ·
Truth!  Nuff said!!
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@jakeybrown ·
$0.45
What are some easy streams of income to get into in your opinion?
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@niallon11 ·
$0.03
There's not much easy money for anybody really. My plan would be to use my wage as a base. When i have paid off my mortgage i will buy another house and rent it out to cover the mortgage on that one and repeat.

Crypto is one of my long term plans. I have a portfolio of a few small pieces but I hope to see STEEM hitting a hundred dollars at some stage. I love the site so enjoy trying to accumulate more anyway. I love to write and dive into learning new things so the site is great for me.

Shares with dividends are great. Don't have any myself but would hope to pick up some in the future when i have the money. You get scheduled payments and if the stocks are good then they should gain in value at the same time.

It depends on where your skills are. If you don't have specialized skills it just comes down to handwork. I only work in a shop but am grafting as hard as i can now so that i will be comfortable while im still young.
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@dana-edwards · (edited)
$1.28
Easy or hard depends on what you have. Income from what I now understand is based on how much wealth you already have (this determines how much value you can bring). A company, a platform like Steem, or anything really, is going to want you to bring value to in. In exchange for you bringing value to it, you can be rewarded in something.  This can be money, this can be prestige.

By just asking the question you asked, you progressed the discussion, which added value to my blog post. As a reward I will upvote you. See how that works?

The more wealth you have or build in yourself through personal development, the more you can bring to everyone and everything else. So if you read more, if you exercise a lot, if you make a lot of friends, if you just are in the right place at the right time, you may know something before the rest of us do or better than the rest of us, and so now you have something we want and maybe you can get paid for that?

If you're someone who already has done a lot of personal development, who already has a lot to offer, then figure out places where you can add a small fee and there you go, a new income stream. This isn't to say it's easy to do, nothing comes without sacrifice. It is merely to say that over time, you can secure one income stream, then two, then three, then you have more than you can track, and from there it becomes about cash flow, how much revenue are you bringing in a month? $1000? $5000? $10,000? And how much are you spending on ads or professional development?

I look forward to SMTs. SMTs will allow any of us to begin building our wealth in ways we cannot currently imagine. Steemit allows us to currently build our wealth by adding value to the Steem platform. We currently achieve this by generating content, or by contributing to the discussion, or by curating. I do all of these three tasks each day.

At one point in time I averaged 6 blog posts a day. Now I post around 2 or 3 blog posts a day. Even when I posted 6 a day, I would comment 10+ times a day to build discussions around each of my blog posts. If I never post another blog again I can comment on the blog posts of other more successful bloggers and make sure my comments are of the quality of a strong blog post. If I never contribute content again I can buy Steem Power and curate to generate income of some amount each month. If Steem were to go away then I have other avenues to produce income, in the crypto space and outside of it.
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@mrsfox ·
$0.03
Dealing with cash flow issues is most difficult when you are starting a business
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@yagoub ·
Same thing here in Steemit.....  more you do,  more you will receive.
thank you @dana-edwards
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@el-morenza ·
$0.15
POC:More positive work u do,the more u receive
👍  
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@dana-edwards ·
Steemit is flawed honestly. The big flaw is there is not enough diversity in what you can do. You can blog, curate, or be in politics (a witness). Blogging is not something which I see lasting for the long term at least for me. Curation I see becoming completely automated sooner or later. This means Steemit has to expand the foundation of opportunities for participants to add value to the platform.

We heard about SMTs many months ago. Where are they? I think we need a developer update about now. A developer update could restore confidence. The ecosystem has to continue to grow.
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@dana-edwards ·
They need to expand on what we can do.
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@el-morenza ·
$0.15
Aside from the govt, @dana-edwards do you think there are individuals that can control the cash flow of an economy?
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@dana-edwards ·
Sure, if you're a company or developer of a platform with its internal currency.
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@cryptotax ·
$0.36
Great points. 

From a finance perspective, a lack of cash flow can also signal some questionable financial accounting. Enron had great accrual basis (aka "GAAP") earnings but lacked healthy cash flows, many earlier Enron bears pointed this out (and they ended up being severely correct).
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vote details (1)
@necrus ·
Agree.
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@ismailrafael ·
Very good post. @dana-edwards
You have support from a generous steemian. I like it
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@amaiyanvbo1 ·
cash flow require proper decipline
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@holabebe ·
5 years from now. staking coins vs dividend stocks? which way should i go?
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@dana-edwards ·
Why not both? I don't see why a person would have to choose but I'll say that to do staking requires a much greater level of expertise. You basically have to be an information security expert to do it. If you get hacked then it's just gone. So I would say staking would only make sense if the yield is between 7-10% and up and if it's lower then I'd go with stocks due to the adjustment made for the level of risk and effort.

Dividend stocks you buy and never have to think about it again. Staking is actually a job, you're a system administrator.
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@holabebe ·
yes the risk factor for staking is big. i should take this into account. im 24 and im spending alot of time building my passive income portfolio. what are some stock you like? i like JNJ and clorox for long dividend growth!
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@steem-samiam ·
Absolutely, cash has always been king.  I know someone that has the business name CIMECO.  He pronounced it *see minko* When asked how he came up with that name, he said it's simple...CIMECO stands for "Cash In Must Exceed Cash Out"
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@agusscout ·
very good friends, really cash flow must always be our guard to stabilize expenses and income. if the expenditure is greater than the income, get ready is we will decline or may be out of business.
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@cortexx ·
$0.52
In business perspective, there are top 4 cash-flow according to Robert kiyosaki that base on how important it is through micro and macro economics, and believe to be valuable to most individual: 
1- **Big business**- ex.  Amazon , Apple, Google...............
 2- **Real state** - ex. Trump tower, House Rental, Mall .........
3- **Stocks**- ex. Amazon part shares of ownership......... 
4-  **commodities**- ex. Gold, Silver, Guns, the latter isn't neccessary :D
👍  
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