Which one you need to control? Money or money flow?

Is there a difference between money and money flow? Yes! Big difference. Money is the tool, money flow is the process. Many people think that they need to control money, in fact, we should control the money flow.

If you notice, businesses revive the national economy. The money needs to flow into corporates (businesses) so that theses businesses have enough monies to flow out to individuals (employees), other corporates (suppliers) and government in the form of taxes. The main source of the government income is tax which depends on the corporates.

Corporates need to spend when they have received the income. Imagine, if they do not spend but keep the money in the bank, what will happen? If the individuals are not spending, there won’t have enough money flowing into the corporates. What will happen? The whole economy will be dying! Money must flow. When the corporates are not spending, the small suppliers will suffer. The employees will suffer.

Based on the above, you can understand that money is meant to flow and not to be kept. Money flow is needed for the economy.

Since everyone needs to spend, how do we ensure we always have enough money after spending? The key is to master the money flow. To improve your finance, you need to manage 2 money flows, i.e. money inflow and money outflow. In this capitalist world, it is no longer able to sustain with single source of income, you need to make sure that you are building or setting up several money inflow channels.

Let’s understand how the rich spend their monies. The wealth is created when the flow process is being controlled well. The richest in the world do not keep their monies in the bank. They make sure they “spend” on assets (properties, paper assets, business, etc.) so that the money comes back to them. If they are not “spending” on businesses, where can the corporates have money flowing into them? Putting money in the stock market raises the capital to the listed corporates too. Hence, do not hoard the money flow. It will damage the economy. Instead, learn to manage the money flow, build up several money inflow channels by flowing out your monies to the right items.

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