S asks, Suppose you have a loan that you desperately want to close. Is it worth dipping into your emergency fund for this purpose? I can find convincing arguments on both sides. If you take this step, you get an immediate return on your investment (equal to the interest rate on the loan) but you […]
The drawing that first inspired me to evaluate my cash flow.
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. [sniplet tip […]
Each Monday morning, I plan to post my thoughts on Organizing Your Finances. Through this series, I hope to share a tip or two that address a common problem that many of us face in our daily lives — that of organizing our finances. I’d love to hear your thoughts on this initiative and would […]