Cash flow represents the movement of money within your personal economy. It presents not only what comes in and out, but also where your money goes and the time the changes occur.
The cash flow is also a helpful tool to expect what happens to your financial standing in the foreseeable future. For instance, you can estimate your revenues for next month and your scheduled expenses. It should give you the idea if your finances will be on the red next month. In order word, you and given a warning of what happens next so you can plan and prepare.
Planning your finances includes not only the “how much” but also the “when” behind it. The cash flow is the best tool to keep you on the loop of your finances.