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In the book Happy Money, a part that stood out for me was when he simplified wealth into two simple parts – stock and flow.

Stock is basically your reserves.  Questions like > How much do you have in your bank account?  What is your net worth?  How much money do you have right now?

Flow is basically personal cash flow…which equals total cash inflow – total cash outflow.

This makes it pretty simple to understand, and I see so much information on decreasing the cash outflow, but I see very little on mainstream media about increasing cash inflow.

This doesn’t take into account the stress / negative emotions that the cash

I also see this as a good social analogy.  How many aligned friends do you have now (Stock)?

Is there a good flow of meeting new people (Flow)? And/or Is there a deeper investment in the people you already are friends with?

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Category: finances

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