Cash flow return on investment
Cash flow return on investment (ROI) is a way of measuring how much money you get back from the money you put into something. It's like a report card to track how well an investment is doing.
Think of it this way: when you get an allowance, you can put it into a piggy bank and save it up. That's like an investment - you're giving up something (your allowance) in a hope of getting more back someday. The Cash Flow ROI tells you how much money you get back compared to how much you put in. So, if you put in $5 and got back $7, you would have a Cash Flow ROI of 40%, meaning you made a 40% return on your $5 investment.
Think of it this way: when you get an allowance, you can put it into a piggy bank and save it up. That's like an investment - you're giving up something (your allowance) in a hope of getting more back someday. The Cash Flow ROI tells you how much money you get back compared to how much you put in. So, if you put in $5 and got back $7, you would have a Cash Flow ROI of 40%, meaning you made a 40% return on your $5 investment.
Related topics others have asked about: