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Question

What is the importance of understanding cash inflows and outflows as you apply in your daily family expenses and income. How will it help you to save money? Share ways on how you can save money regularly.

Answer 1

Understanding cash inflows and outflows is important because it assists with tracking daily transaction of where your money comes from (earned/received) calculated against how you spend your money. Monitoring your inflows (money earned/received) and outflows (expenses) identifies unnecessary spending, prioritize essential needs, and creates a better for future goals. Knowing your financial flow allows you to make informed decisions and avoid overspending.