What is your Yin-Hang cash-flow ledger like when it’s really good?
It’s about regular in-and-out transactions—every day there are one or two thousand in and out. At the end of the month, you withdraw a payment to buy inventory, and leave several tens of thousands in the account. Really good is when it’s mixed with everyday living expenses. For example,
I sell fish in a small market. Every day there are dozens of transactions of about 50-something yuan each; my daily flow is 1,500. Every day is like that. At the end of the month, I withdraw one payment of 20–30 thousand to purchase goods, and there are still 30–40 thousand left in the ledger.
This shows a few things:
1. Your income is extremely reliable. Yin-Hang doesn’t care whether you’re a small vendor or a programmer—it’s all about the money.
2. When you withdraw a lump sum at the end of the month, you need to be able to explain clearly what the reason is, for example buying inventory.
3. You can’t spend every last cent. You must keep a buffer in the ledger.
4. Usually look at six months; a full year is better.
5. The cash flow shouldn’t be too crystal-clear. It’s better if it has various ins and outs so it looks natural.
6. In an in-person meeting, you should talk about interest and be a bit meticulous; don’t be too easygoing or too quick to agree.
It’s about regular in-and-out transactions—every day there are one or two thousand in and out. At the end of the month, you withdraw a payment to buy inventory, and leave several tens of thousands in the account. Really good is when it’s mixed with everyday living expenses. For example,
I sell fish in a small market. Every day there are dozens of transactions of about 50-something yuan each; my daily flow is 1,500. Every day is like that. At the end of the month, I withdraw one payment of 20–30 thousand to purchase goods, and there are still 30–40 thousand left in the ledger.
This shows a few things:
1. Your income is extremely reliable. Yin-Hang doesn’t care whether you’re a small vendor or a programmer—it’s all about the money.
2. When you withdraw a lump sum at the end of the month, you need to be able to explain clearly what the reason is, for example buying inventory.
3. You can’t spend every last cent. You must keep a buffer in the ledger.
4. Usually look at six months; a full year is better.
5. The cash flow shouldn’t be too crystal-clear. It’s better if it has various ins and outs so it looks natural.
6. In an in-person meeting, you should talk about interest and be a bit meticulous; don’t be too easygoing or too quick to agree.