InfoHQ Site Search Low Mortgage Rates Search Other Sites for Information in the Search Box Below The Most Important Thing Cash flow is the most important aspect of money management. However, when your payments exceed your income, you will eventually run out of money, no matter how many new credit cards and loans you receive. That's why you need disposable income.
Disposable Income Having disposable income is a sign of positive cash flow.
It means that after you pay off all your bills you have something left. Everyone needs disposable income to pay bills from recreation, medical problems, children, and other unforeseen financial problems. That's where a monthly budget comes in handy. You have to have a computer and a spreadsheet, and keep track of everything for a month to see what you are spending money on. But, I think most of us have a pretty good idea of what our monthly bills total.