Attitude About Cash Flow
Financial Management

Attitude About Cash Flow

financial literacy

Interesting comment I heard today where a person was saying how she worked overtime one day and then another person commented on how at least she made more money. The lady then responded by saying she wasn’t really making any money as the income goes directly to paying a bill.

Kind of a dangerous way of looking at it I thought as essentially in her view it was almost as if she was constantly working off a debt of some sort. In essence, she wasn’t really getting any money at the end as she was working to satisfy others.

In my opinion, cash flow is just like a river and it’s really your choice as to how you want to distribute it. Example, even if you only made $10 a month with two $5 bills you have to pay, there are so many ways to go at it.

You can just say it goes towards paying the bills and that’s it. At the same time, you can use tools that are available to you such as a credit card in a responsible fashion to allow you to do something with that $10 for another 30 days to make more money. Like most things though, it does come to attitude and perspective. Cause at the end of the day, it’s something that you control and not the other way around.


  • Stewart 5/28/2008

    A related theme perhaps, but I remember years ago reading about a special holiday which a person took. They had calculated how many days into the year it was before they were finally working for themselves.

    The logic was to take how much you earn gross and get an approximation of the tax you will pay in the year. Let’s say you earn $36,500 gross, and will pay 10,000 in tax. $36,500 is $100 per day. With $10,000 of tax to pay that would take you 100 days. Therefore this year, your Tax Celebration Day would be April 10th.

    On April 10th you could say that this is the first day of the year you stop working for the CRA and start working for you! Just a bit of fun, but an illustration of how perspective is all important!

  • Alan Yu 5/28/2008

    That’s actually kind of a cool way of thinking about it. Very positive attitude at least that’s for sure. 🙂

  • Rachel 5/29/2008

    I see nothing wring with saying it is paying off a bill, but I would be happy about it. All of my income goes towards paying off the mortgage, I am thrilled about that as I cannot wait to be free of the debt.

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