It’s really all about cash flow.
Seriously. That’s what this money thing is all about.
You know, having enough money to spend on living the life you want to live.
I really just wanted to clarify this, because I think so many people are worried about the wrong thing.
The game is simple.
If you have enough cash flow to cover your expenses, then you are financially free.
You can get that cash flow from doing 1 of 3 things.
1) Jobs that create cash flow
2) Investments that create cash flow
3) Businesses that create cash flow
They all involve “work” or better defined as you creating value for others, clients, customers, the world.
I wouldn’t say any of the 3 is easier or simpler than the others.
I would say each comes with its own set of struggles and frustrations, setbacks, and benefits.
2 of the 3 options for creating cash flow allows for unlimited growth.
1 of the 3 does not.
But you know this.
The quest remains the same no matter which you choose.
Monthly cash flow great enough to cover your needs, wants, lifestyle and help fund your dreams.
It really is all about cash flow.
What it’s really not about: Saving, Net Worth, and Debt.
It seems this is what everyone is so focused on.
But in reality, if you had a business that produced you sufficient or even great cash flow every month, and you spent it all, would you be fine? Absolutely!
I mean prudence and planning are helpful and NECESSARY things because things don’t always go as planned, but for the most part, if you had a business or multiple businesses/investments that produced you sufficient cash flow, you really wouldn’t need to save a penny if you were “guaranteed” that income each month.
Okay, I’m just trying to play devil’s advocate, and I do realize nothing is guaranteed.
Saving and Investing is important. For the people that have jobs, then saving/investing builds up their investments for future cash flow streams when they are not working.
The business owner typically invests a ton, but usually all into his/her business.
Net Worth, (and yes, I do teach that this is an important metric to measure) doesn’t actually provide cash flow for you – you actually have to do something with the assets for that to happen. Just growing your net worth is not going to create cash flow for you.
Debt is a tool if used properly, although, most of the time I realize that’s not the case. Paying down debt only really does one thing: increases cash flow.
My bottom line is this: If you focus on creating the right things (cash flow) then other things, the other goals (savings, net worth and debt) will take care of themselves.
Find ways of creating cash flow.
Find ways of creating multiple streams of cash flow.
Find ways of creating multiple streams of cash flow that will outlive you.
Find ways of creating money flowing to you. Consistently.