You are a business of sorts... this is true whether you like it, know it, or not. Here, cash flow is essential.
A business has these three things: Revenue, Cost of Goods Sold (COGS), Gross Profit. The business of YOU Inc. has these as well.
The Revenue is your income (day job, dividends, interest income, etc.)
COGS is your expenses (mortgage/rent, utilities, phone, auto, insurance, etc.)
Gross Profit is a simple math problem: Revenue - COGS = Gross profit (aka the money left before taxes).
Side note: One's home is like a business of sorts in itself. We will unpack that more shortly. Here are the three keys to focus on right now...
One's home has many departments, just like a business or company. Question:
Do you know what it costs monthly to keep the lights on, literally and figuratively? Consider Mr. Wonderful from Shark Tank, saying, "You have to know your numbers."
Let's look at an average American home and some ideas to make "your home, aka company," more efficient. And what does it take, if one wants, to make the business of YOU cash flow positive? Buckle up, let's pass go, and collect our $200 in BIG Ben's!... And, more importantly, decide what to do with our friend Ben next.