THE FLOW OF LIFE

Most people do not think of life as being a flow. This is because they do not think philosophically. Philosophers cannot think in any other terms. Those who do not think philosophically benefit by what philosophers write. The philosopher’s thoughts can penetrate their thinking and become a part of them. This is the purpose of writing, to influence other’s thinking. Cornelius Van Til said we are to think God’s thoughts after Him. In the same way, thinking is shaped philosophically or ultimately theologically.

If we look at time, we see that time is linear that is it moves in a straight line. Time never reverts but progresses. An axiom should state that with the progression of time people should be freer and have less government intrusion in their lives. When a people are wholly dependent upon the government, what we have is an attempt to regress and turn the clock back. The goal should forever be self government under the law of God. This is where time or if you will, history is taking us. We are headed for a decentralized system. Centralization is a system that has collapsed under its bankrupt theology. We are now witnessing the visible reality of this spiritual bankruptcy.

In the flow of life, we have unsatisfied needs. What needs are satisfied currently will have to be satisfied in the future. The future is an area of unsatisfied needs. Thus, when we think in financial terms, we must think in terms of flows and stocks. Income is a flow and thus why we call it cash flow. This incoming flow is designed to satisfy our current needs. By controlling our needs (spending or expenses), our incoming flow of funds will become a stock or surplus.

This stock or surplus is designed to meet future unsatisfied needs. The stock or surplus is not a flow but an accumulation. Income can be likened to a stream that fills a beaver pond. The beaver pond is the accumulator of the flow. At the other end of the beaver pond is an outlet, where funds are released to meet needs. What is not good is not having a beaver pond or an accumulation of the flow.

No beaver pond means that it is all flow and no accumulation. The income is flowing in and flowing out with no accumulating point. The beaver is an industrious animal and knows by instinct to create an accumulating point. This benefits many other types of life in the natural. In the same way, having a stock or surplus benefits the furtherance of life. Knowing what to do with a flow is wise.

In accounting, there are two statements that measure the amount of flow that a business has and one statement that measures the surplus of the company. The two flow statements are the Income Statement and the Cash Flow Statement. The stock statement is called the Balance Sheet. From what has been written, it should be easier to mentally see what a flow and a stock are and their significance to the flow of life.