It’s always a good question. Some might say that there’s never enough money and others may say that enough is when it’s enough. Both are similarly vague and not really accurate. 

Running a business means you need to be liquid. Taking this a bit further means that you need to be able to satisfy your suppliers and employees above all – pay up your payables.

To make a simple enough example – you have 1,200 payables balance to your suppliers and just 900 cash. Those payables are what you need to pay up tomorrow and hence 1,200 is what you should have in cash latest at the time you will be making this payment.

You know you will be making sales worth of 400 in the next day, but you will not most probably have them all pay up tomorrow. Here’s hoping you will at least get that 300 in cash that you’re missing (1,200 – 900)!

To summarize, you have enough money when you’re sure you’re able to pay up your debts at their due date. “Enough money” means what you have right now and what you’ll be able to collect until the payment date arrives.