Tag: Gearing

What’s the difference between gearing and cash flow?

In the last post, we looked at the buzzword ‘negative gearing‘ (where the interest you are paying on the loan is more than the income), and why positive gearing (where your income is more than the interest) can be more attractive. But for anyone looking to retire early, or have the financial freedom to quit their job, pursue creativity, or raise a family, the concept of cash flow is perhaps even more important to know about than gearing. And it’s something we all need to know about – not just investors.

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