Start Building Your First Million: Financial Management Tips For EveryonePosted by Jessymeshak on December 26th, 2019 Most people look for capital gain when Abundance With Money Review it comes to investing. Net worth is based on estimated value rather than actual cash flow, hence you can have a millionaire who is stone broke - asset rich but cash poor. They are worth millions but are broke at the same time, contending with past due bills. A minor financial crisis can cause them to dispose of their assets at a giveaway price. Negotiating property price with an owner who desperately needs the money is every buyers dream. When they sense the desperation, they lower their bid. They buyer calls the shots. He who has the gold makes the rules. Cash flow is the lifeblood of every business and personal finance. The moment a company runs out of cash, it is headed for bankruptcy despite projected earnings and profits for that year. You get to hear about terms like "paper profits", profits not backed by money in the bank. The moment the company cannot make payroll, pay its suppliers and catch up loan repayment, the company is gradually going out of business. In mergers and acquisitions, the cash rich partner dictates the terms. You find seemingly smaller companies acquiring bigger companies or becoming the senior partner in a merger. It is a matter of cash. It also holds true for individuals. When you are cash strapped, you negotiate from a position of weakness. When there is no dime in your pocket and your bank account, your self esteem suffers, no matter how exotic your automobile or which neck of the woods you live. You live life on the edge, always afraid that something will give. You are not far away from embarrassment. Like it? Share it! More by this author |