Back October 5, 2016

The Threshold Line

One of the first things you notice when you log in to the ThinkOut account is the graphic area with a red line in the middle, one that is not connected to any of the three preset cash plans.

That red line (which didn’t get that color by accident) is your faithful guide; it is the Threshold that you’ll have to watch for and compare to when analyzing any of the cash flow scenarios. It signals the alert level of the cash flow, the one beneath which you don’t want to see the other chart lines going.

The default setting for the Threshold value is 0.00, so you need to make sure none of the chart lines gets very close to the red one. Not only does it stand as a danger signal, but it also acts as a trigger in your cash flow forecasting. The moment your projected cash plan line approaches the red one, you know you need to step on it and act, make it take off again.

Use the red Threshold line as a compass pointing the right direction (mainly up and above) for each of your cash flows. The day one of the cash flow lines crosses the Threshold, is the Zero Cash Date. Though it may appear at some point in your projections, its purpose is to warn and motivate you to never actually reach it.