Getting Rid Of Expenses And Debt
If you’re ust like other ordinary people, your cash flow is just flow through your ATM each month. Because most of it is spent on your monthly living expenses, this means that if you have only a linear-income you must keep working every single month to pay your monthly bills.
Take a look at the following rules, to get a better idea of what things should be like:
- Cash pays for the goodies, or “Happiness is a positive cash flow!”
- Cash inflow must be greater than cash outflow.
- Residual cash flow is better than linear cash flow.
- While we say time = money, assets are what produce money. The greater the assets, the greater the cash flow. Feed your assets so your assets can feed you!
- Wealth is a function of cash flow over time.
- Cash must be generated from more than one source of wealth. Income must feed wealth-producing assets, which in turn produce more cash flow.
- Taxes are cash flow’s nemesis. Use the tax code to increase cash flow. Don’t allow taxes to use your cash flow.
- You can’t create more time, but you can buy it back.
- Financial independence does not equal financial freedom. Owning your own business does not necessarily make you free!
- Positive cash flow must not depend on your efforts alone.
- Associate with successful, cash-flow producing people. Ask them to take you under their wing. Learn what they do and step into their shoes.
Money does not make you happy, however, money is ONE of the stumbling blocks of achieving happiness, along with knowledge, faith, time and health. This list is a list of truths that, once learned, will help you on your way to financial freedom.
The essence of successful cash flow management is regulating the money flowing in and out of your wallet. Sounds simple doesn’t it? It really is, but very few people take the time to keep track of what actually comes in and goes out each month.