Tip Tuesdays: What Does a Negative Free Cash Flow Indicate?

by Vinaya HS on April 20, 2010

in Finance

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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:

  1. Your income is too low, or
  2. Your expenses are too high, or
  3. 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.




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