The Importance Of Building Your Cash Flow

by Bryn Youngblut on January 30, 2009

I remember starting out trying to do affiliate marketing fulltime and I literally had a few hundred dollars to spend. There is two important things you need, cash flow and a decent credit limit. I started out with neither.

I can hardly even recall what campaigns or what started making me money in the beginning but I do know I had some rough weeks where I literally was losing potential money just because I had to wait for my payment to come in, and I was on weekly wires too. When you go from spending a hundred bucks a day to $5000+ it’s a bit of a jump and if you don’t have the cash flow you’re going to run out very quick. Some people may recall my post back in November about my annoying credit limit bogging me down from spending more.

Anyway so I have built up what I think is a pretty hefty cash flow which allows me to spend a good amount per day if need be (I don’t like to brag or talk about numbers). Even with my shitty credit limit (because I’m still considered a student) I can make a payment then put more money on the card and the credit limit is automatically increased again for more spending.

When you build up your cash flow you need to have it put aside in it’s own account, this money is to be re-invested over and over again. Just because you have a ton of cash doesn’t mean it’s there to spend on whatever you want, if you don’t have the discipline you will piss all your cash away and have none left to make more money with. Whenever I get a payment, what I do personally is I take 10% of the amount (yes the gross) and put it in my savings, the rest stays in my cash flow account for re-investing. I’m not sure how other people do it but this is how I have always done it and it works great, I will probably up the % I put in savings once my cash flow starts to get too large where I’m not spending close to all of it every week.

Start building that cash flow. You need money to make money!

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