Cash Flow
The money coming in versus going out over a period, the day-to-day engine of saving and spending.
Cash flow is the movement of money into and out of your finances over a period: income coming in, expenses and savings going out. Positive cash flow, earning more than you spend, is what funds investing and debt paydown; negative cash flow erodes savings or adds debt.
Understanding cash flow is often more actionable than net worth, because it's where decisions actually happen month to month. A Sankey-style cash-flow diagram makes it visual, showing exactly how each dollar of income splits across taxes, spending categories, and savings, and where there might be room to redirect money toward your goals.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.