Cashflow is the fuel that drives your car. I talked earlier about how leverage has been instrumental in helping me accelerate my path to financial peace, but given it also increases one’s risk, you cannot play the game of investing without sensible risk mitigation. The foundations of this can only be found in sound cashflow management and forward modelling.
In this section, you are going to learn about the financial indicators that reveal your current financial story. It is calculated by deducting your total income flowing in (NetIncomeSPEED™) from the total spending (SpendingSPEED™) flowing out of your household, with whatever left over being represented as one’s SavingSPEED™.