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Cash flow refers to the amount of money that is coming into or going out of a business or investment. It's like the money that flows through a pipe - sometimes it goes in, and sometimes it comes out.
For example, let's say you have a rental property. Every month, your tenants pay rent, which is money coming in. But you also have to pay the mortgage, property taxes, and maintenance costs, which is money going out. The difference between the money coming in and going out is your cash flow.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh the cash flow, the cash flow,
It comes and it goes, you know!
Sometimes it comes in, like a river so wide,
And other times it goes out, like a low-tide.
When the tenants pay rent, the cash does flow,
Into your pocket, it's ready to go!
But don't get too excited, for there are still bills,
Like mortgage and taxes, that give you the chills.
So watch that cash flow, oh don't you forget,
Keep track of the money, so you don't get in debt!
If you manage it right, you'll be in the green,
And your rental property will be a dream, oh so serene!