Funny, I looked it up do see its exact definition. Basically, it means, you think everyone is acting in their own self-interest, and that no one acts for the good of others . . . unless they're going to get something out of it too.
So, if someone seems to be being nice to you, you suspect that they are doing it for some hidden reason - - maybe they want you to do something for them.
A cynical person would tend not to believe in heroes, saints, etc.