Capital appreciation is great, but cash flow is better.
The best investments pay you money to hold them.
Think dividends, rental income, royalties, business profits, interest.
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The best investments pay you money to hold them.
Think dividends, rental income, royalties, business profits, interest.
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We live in a unique market, where seemingly everything continues to go up.
Because of this, growth is prioritized over income.
But people who have been investing longer than a decade or so understand growth is never guaranteed.
Markets move up, sideways, and sometimes down.
Because of this, growth is prioritized over income.
But people who have been investing longer than a decade or so understand growth is never guaranteed.
Markets move up, sideways, and sometimes down.
Net worth is a bad measure of wealth.
If your net worth is 2 million, but your portfolio pays you nothing to hold it, the only way to access your money is to sell those assets.
Selling your assets, especially during down market cycles, could result in a loss of future income.
If your net worth is 2 million, but your portfolio pays you nothing to hold it, the only way to access your money is to sell those assets.
Selling your assets, especially during down market cycles, could result in a loss of future income.
Inversely, if your assets provide you with consistent cash flow, you have no need to sell your assets.
In fact, it is the cash flow itself that encourages and rewards you to buy and HOLD.
That cash flow even has a chance at growing over time (and so does the asset value).
In fact, it is the cash flow itself that encourages and rewards you to buy and HOLD.
That cash flow even has a chance at growing over time (and so does the asset value).
Think of it this way:
What if instead of a 2 million dollar net worth that pays zero cash flow, you had a $80k net worth and assets that paid you $80k a year.
Would you even care what your net worth was if all your expenses were paid yearly by your assets?
What if instead of a 2 million dollar net worth that pays zero cash flow, you had a $80k net worth and assets that paid you $80k a year.
Would you even care what your net worth was if all your expenses were paid yearly by your assets?
You might say, “Well yeah, but wealthy people can borrow against their assets rather than sell them.”
The point this misses is: you have to have cash flow to pay back the interest and eventually the loan.
A good farmer sells the fruit a tree produces, not the tree itself.
The point this misses is: you have to have cash flow to pay back the interest and eventually the loan.
A good farmer sells the fruit a tree produces, not the tree itself.
Collect assets that pay you to hold them.
Use that cash flow to purchase more assets until eventually you’re free.
You’re free when your cash flow pays your expenses.
- Dividend Stocks
- Rental Real Estate
- Interest
- Royalties
- Profitable businesses
Cash flow is king.
Use that cash flow to purchase more assets until eventually you’re free.
You’re free when your cash flow pays your expenses.
- Dividend Stocks
- Rental Real Estate
- Interest
- Royalties
- Profitable businesses
Cash flow is king.
My favorite form of cash flowing asset is one of the most passive — dividend paying stocks.
Learn how to select your own portfolio of them from the resource I used, @DivCultivator guide.
Grab it here via my affiliate link 👇🏻
gumroad.com/a/267547763/CS…
Learn how to select your own portfolio of them from the resource I used, @DivCultivator guide.
Grab it here via my affiliate link 👇🏻
gumroad.com/a/267547763/CS…
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