The net amount of cash moving in and out of a household or business over a period.
Cash flow is the movement of money in and out of your bank account, household, or business over a specific period. Positive cash flow means more money is coming in than going out; negative cash flow means spending exceeds income. Cash flow differs from profitability—a business can be profitable on paper but have poor cash flow if customers don't pay quickly or inventory ties up cash. Tracking cash flow is critical for financial health: it determines whether you can cover bills, invest, or save. Monthly cash flow analysis helps identify spending patterns and opportunities to improve your financial position. For businesses, free cash flow (cash from operations minus capital expenditures) is a key metric for assessing financial health.