What is cash flow?

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Kandance Beamon
Signal Financial
www.sfonline.org  
301-933-9100

Signal Financial is a cooperative, owned and operated by its members. This is what distinguishes the credit union from other financial institutions. Members put their money in a variety of savings accounts, and that money, in turn, is lent to members. After operating expenses and reserve requirements are met, loan income is returned to all members in the form of dividends and comprehensive financial services.

Signal Financial is governed by a Board of Directors that establishes and reviews policy. The Directors are credit union members who are elected by the membership and serve without pay. Every member has one vote, regardless of how much he/she has on deposit. At the credit union, there is no select group of shareholders that profits more than anyone else. All members profit -- individually and collectively.

At Signal Financial we strive to provide quality and fairly-priced financial services for our membership.

Signal Financial is a federally-chartered credit union, organized under strict regulatory laws that are monitored and enforced by the National Credit Union Administration, an agency of the U.S. Government. The NCUA insures each member savings account for $250,000 and an additional $250,000 for Individual Retirement Accounts (IRAs).

What is cash flow?

In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.

This expert: 17,975 views

This series: 13,610 views

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Transcripts

Speaker: What is cash flow?

Kandance Beamon: Cash flow is the amount of money leftover after all expenses have been paid. So the way you can calculate your cash flow is to subtract all of your expenses from your income and that amount of money that's leftover that's actually how much cash flow you have on a monthly basis. If you feel that the amount of cash flow is not enough or is not enough to cover those expenses or if you are finding that your cash flow is ending up in the negative, then what you want to do is look at ways to supplement your income and you can supplement your income again through, I am coming up with a part-time job, finding part-time employment or a seasonal employment maybe. You are going to be looking at if you have a special skill, maybe it's the way that you can market that skill in order to bring in additional income. May be your neighbors need a babysitter and if you have the time in afternoon that you can babysit to bring in extra income that's excellent way to make more money. Maybe you are an excellent cook or baker and you can self-cake, that's excellent way to also bring in additional income or looking at overtime with the employer is a possibility for you to pick up an extra shift or maybe work a couple of hours, additional every week in order to bring in more income. But what you want to make sure is that you have positive cash flow and that means having enough money left over at the end of each month that can be saved and put towards those purchases that you dream about such as purchasing your own home, purchasing that automobile that you have been looking at or taking the family on a dream vacation. But you really want to make sure that you have enough income coming in to cover those expenses that are going out and that will be a positive cash flow.

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