Cashflow and Compounding

What is cashflow and where does it come from?

Cashflow from investment

Typically, you can invest in cash, fixed interest, property and business.

In regards to business, you can invest in private business, or public business. When you buy shares on the stockmarket, you are buying into a public business.

Cash and fixed interest investments tend to provide income returns, where property and shares provide both income and capital growth. It is the income return which influences your cashflow from investments. (To learn more about these types of investments, see the Investment module.)

Interestingly, if you are investing in a business, whether it is listed on the stock exchange or is a private business, you are investing in all of the business.

All of the business includes the people and their capacity to create positive revenue through the providing of goods and services to the clients and customers. This is an example of how we invest in people.