Why Cash Flow Today?
Why cash flow Today? The goal of the typical financial model is to accumulate a pile of cash. It is akin to climbing a mountain, where the journey to the top is all about creating a lump sum. At the top, you’re hoping the lump sum generates enough income to live the rest of your life.
This is the typical retirement model of thinking, and here’s why it often doesn’t work.
It’s very difficult to build a pile of cash large enough such that you don’t run out of money. It’s so challenging due to risks like inflation, taxes, interest rates, market risk, loss of principal, and longevity risk. All of these risks can require you to cut back your lifestyle, or work longer than you had planned.
The typical model of financial planning leads to one end goal: to generate income in the future to accommodate the lifestyle you want at that time.
Where Investing Fits in the Cash Flow System
It’s not enough to just make a great income. Financial freedom starts when you create enough cash flow today from assets to sustain your lifestyle even if you do not show up to work.
You have to figure out how to keep more, protect that money, and then make more through the right investing decisions.
That’s why we’ve put together a 3-step roadmap to help business owners accelerate
Why Cash Flow Today?
Whether you focus on creating a pile of cash or streams of cash, both have the same end goal.
Let’s answer the question, why cash flow today?
Let’s say you have cash flow in your current life of $1,000 a month and you have been setting that aside in an opportunity fund. You then use that to invest in an asset, generating an additional stream of income. We’ll say $3,000 of income a year.
Thinking like a bank, you repeat and invest in additional assets, which increases your cash flow, giving you more money to put to work. Not to mention that over time you will also build equity, which you could use to accelerate this process.
Financial freedom is when you have enough cash flow today coming from assets to cover your expenses. You’re in a position where you have freedom of choice to do what you want to do with your life.
Realizing that the end goal of all financial planning is cash flow opens up your mind to think differently about being in control of your financial life. You’re ready to answer the
Your Decision Point
Book a strategy call to find out the one thing you should be doing today to optimize your personal economy and accelerate financial freedom.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
In today’s show, we’re interviewing Michael Cobb, Chief Executive Officer and Co-Founder of ECI Development. This real estate development company is building and financing inspired residences for adventurous souls in Belize, Panama, Nicaragua, Costa Rica. Prepare to expand your investor’s paradigm to consider diversifying your asset portfolio outside the US. Think resort-style living for the…Read More
In today’s show, we’re interviewing Dr. Joel Wade, of Mastering Happiness. Dr. Wade is an Author, Psychotherapist, and Life Coach who’s centered his work on happiness, and helping people live happier, better, and more effective lives. And we’re talking about true happiness and well-being, not simply the happiness of feeling good in a lucky moment…Read More