Cash Flow: What Does It Mean?

Cash flow is the money moving into and out of your accounts over a given period, from income coming in to expenses going out. When more comes in than goes out, you have positive cash flow, which gives you room to save, invest, or pay down debt. Negative cash flow means you're spending more than you earn, often covered by savings or credit. Businesses track cash flow closely, but it matters just as much for households, especially if your income is irregular. Tracking your personal cash flow is one of the simplest ways to see your financial picture clearly and spot where small changes could make a big difference.