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You’re trying to spend/save/invest money that you don’t have.
Given this definition of free cash flow, a negative value can mean:
- Your income is too low, or
- Your expenses are too high, or
- Your goals (and hence savings/investments) are unrealistic.
Cut-back first on #2 and then on #3. Even better — increase #1.
Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.